Schloss Bangalore Limited , a prominent player in the luxury hospitality sector, has announced a significant investment in a high-end project located in Mumbai's Bandra Kurla Complex (BKC). The company is set to inject ₹67.50 crores into this ambitious venture, marking a strategic move to expand its presence in one of India's premier business districts.

Joint Venture Details

The investment will be made through a joint venture partnership, where Schloss Bangalore will maintain a 50% stake. The remaining 50% will be held by Arliga Ecospace Business Park Private Limited (AREBPPL), an affiliate of Brookfield Asset Management Ltd. This collaboration brings together Schloss Bangalore's expertise in luxury hospitality and Brookfield's robust real estate portfolio.

Project Specifics

The joint venture company, Leela BKC Holdings Private Limited (LBHPL), will be responsible for developing a mixed-use project on a commercial plot in G-Block, BKC. The development plans include:

• A 250-key luxury palace hotel with high-end amenities
• The Arq Club, an exclusive facility within the hotel
• A commercial tower with approximately 700,000 square feet of chargeable area

Financial Structure

Schloss Bangalore's investment will be structured as follows:

The shares will be acquired through a rights issue at ₹100 per share, which includes a premium of ₹90 per share.

Strategic Implications

This investment underscores Schloss Bangalore's commitment to expanding its luxury hotel portfolio in prime locations. The BKC project represents a significant opportunity for the company to establish a strong presence in Mumbai's financial and commercial hub.

Regulatory Compliance

The company has made the necessary disclosures under Regulation 30(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The investment does not require any additional governmental or regulatory approvals.

Timeline

The allotment of equity shares to Schloss Bangalore Limited and its subsidiary SCPL is expected to be completed by July 25, 2025.

This strategic investment by Schloss Bangalore in the BKC luxury project demonstrates the company's confidence in the high-end real estate market and its commitment to growth in key urban centers. The partnership with a Brookfield affiliate also highlights the project's potential to attract significant interest from both the hospitality and commercial real estate sectors.

Schloss Bangalore Limited (The Leela) has announced its strongest Q1 performance to date, with significant growth across key financial and operational metrics.

Financial Highlights

• Total revenue increased by 25% to ₹3,013.00 million
• EBITDA surged by 63% to ₹1,280.00 million
• Positive PAT of ₹87.00 million, compared to a loss of ₹750.00 million in the previous year
• EBITDA margin expanded by 980 basis points to 42.50%

Operational Performance

The company's owned hotel portfolio demonstrated strong growth in key performance indicators:

• RevPAR (Revenue Per Available Room) increased by 20%
• Occupancy grew by 4 percentage points
• ADR (Average Daily Rate) improved by 13%

Strategic Developments

1. Expansion into Mumbai: Secured a land parcel in Bandra Kurla Complex (BKC) for a new Leela Palace Hotel
2. Strong Balance Sheet: Maintained a net debt-to-EBITDA ratio of 0.30x following IPO proceeds used for debt reduction
3. Portfolio Growth: Currently operates 13 properties with 3,544 keys and has 8 hotels with 966 keys in the pipeline
4. New Initiatives: Launching ARQ luxury clubs across multiple locations

Outlook

Schloss Bangalore Limited is well-positioned for continued growth in the luxury hospitality sector, with a focus on expanding its portfolio and enhancing its offerings across key markets in India.