New Delhi: India's hospitality sector is undergoing a transformation. Companies like The Leela Hotels, Vivent Hospitality, and Brigade Hotels Ventures are poised to enter Dalal Street. Significantly, these companies are all institutionally-backed, with giants like Brookfield, Blackstone, and Brigade Enterprises behind them.
The Leela Hotels: Brookfield's Confidence, Global Scale Strategy
The Leela Hotels positions itself as India's only institutionally owned and professionally managed pure-play luxury hospitality company. Its partnership with a global asset manager like Brookfield provides a unique distinction. Brookfield currently manages assets exceeding $925 billion, including a portfolio of over 41,000 hotel rooms. Leela's growth strategy focuses on international expansion, apartment projects, and development management.
Vivent Hospitality: Blackstone and Panchshil Group's Collaboration
Vivent Hospitality operates under luxury brands like JW Marriott and Ritz Carlton in Pune and the Maldives. It is promoted by Blackstone and the Panchshil Group. Blackstone is the world's largest hotel investor, holding over 161,000 keys. Vivent's growth strategy emphasizes new hotel development, organic growth, and high-end F&B services.
Brigade Hotels Ventures: A Strong South Indian Player
Brigade Hotels Ventures maintains a presence in South Indian cities like Bengaluru, Chennai, Kochi, and Mysore. The company currently operates nine hotels, managed by brands such as Marriott, Accor, and IHG. Brigade Group's real estate expertise and experience in mixed-use development provide a market advantage.
Market Conditions and Supply-Demand Trends
According to a Horwath HTL report, the CAGR of hospitality supply in markets like Bengaluru, Pune, and the Maldives will remain limited in the coming years, providing these companies with better pricing power and growth opportunities.
A Glance at Financial Performance
- The Leela Hotels: ₹1,226 crore revenue and ₹600 crore EBITDA in FY24; RevPAR 1.4x higher than the industry average.
- Vivent Hospitality: ₹243.7 crore revenue, ₹300.5 crore EBITDA, and a 60.75% EBITDA margin in FY24.
- Brigade Hotels Ventures: ₹402 crore revenue and ₹145 crore EBITDA in FY24; significant growth from FY22.
What's in it for Investors?
- The Leela Hotels: Brookfield's experience, a b brand, and operational efficiency.
- Vivent Hospitality: Global expertise, high-end assets, and focus on a limited supply market.
- Brigade Hotels Ventures: Location strategy, ESG focus, and a combination of hospitality with real estate.
If you are looking for investment opportunities in the hospitality sector, these upcoming IPOs could be a golden opportunity. Strong financials, experienced promoters, and future growth plans make these companies an attractive investment option.
