Brookfield Asset Management is planning to list its luxury hotel chain, The Leela Palaces, Hotels & Resorts, and is in talks with bankers for the process, according to people familiar with the matter.
Brookfield had committed to investing over ‘1,500 crore in the hotel chain following its initial deal, which involved an investment of ‘4,500 crore. This represented the largest-ever foreign investment in the Indian hospitality sector.
The Canada-based asset manager chose not to comment on the development.
The Leela’s portfolio presently comprises 13 hotels, both owned and managed.
India’s hospitality sector has experienced a significant rebound following the Covid-19 pandemic, with listed entities like the Tata Group-backed Indian Hotels Company posting record-breaking figures.
Reflecting the trend of increasing demand for premium experiences, luxury operators have been thriving. For instance, approximately 80% of the new deals in India now focus on the luxury and premium segments for Marriott International, a departure from the situation before the pandemic.
Continue Exploring: Hotel giants bet big on India: Radisson, Marriott, Hilton, IHG, and Wyndham compete in intense race for expansion
In 2023, hotel investments in India surged to $401 million, marking a fourfold increase compared to 2022. According to data provided by JLL, the first quarter of the calendar year 2024 witnessed an 80% year-on-year increase in deals, amounting to $78 million.
JLL reports that 2023 marked the highest number of assets traded in the past decade, with high-net-worth individuals driving most of the transactional activity. The year also witnessed a record number of signings and openings, with 25,176 keys signed and 12,647 keys opened. Additionally, there was a significant increase in greenfield projects, totaling 13,600 keys, compared to 8,000 keys in 2022.
Apeejay Surrendra Park Hotels launched its ‘920-crore initial public offering on February 5 of this year. Additionally, Juniper Hotels, jointly promoted by the Saraf Group and Hyatt Hotels Corporation, made its debut on stock exchanges in the same month. Juniper, the largest owner of Hyatt-affiliated hotels in India with 1,836 keys, is co-owned by Saraf Hotels and Two Seas Holdings, an affiliate of Hyatt Hotels Corp.
Continue Exploring: Hotel investments in India surged to $401 Million in 2023, reveals JLL Report
