Schloss Bangalore Ltd , the owner and operator of The Leela luxury hospitality chain, has announced plans for a significant rebranding initiative alongside impressive financial results for the first quarter.

Proposed Name Change

The company's Board of Directors has approved a proposal to change the company name from "Schloss Bangalore Limited" to "Leela Palaces Hotels & Resorts Limited." This decision, subject to shareholder consent and regulatory approvals, aims to align the corporate identity more closely with its flagship brand, The Leela.

The name change will necessitate alterations to the company's Memorandum of Association and Articles of Association. These changes will be implemented upon receiving the 'Certificate of Incorporation pursuant to change in name' from the Registrar of Companies.

Strong Q1 Financial Performance

Schloss Bangalore Ltd reported robust financial results for the first quarter:

The company's turnaround from a ₹10.00 crore loss in the same quarter last year to a ₹35.00 crore profit this quarter marks a significant improvement in its financial health.

Stock Market Performance

Schloss Bangalore Ltd, which made its stock market debut on June 2, initially faced a challenging start with shares listing at a nearly 7% discount to the issue price. However, the company's strong financial performance could potentially influence investor sentiment. As of the latest trading session, the company's shares closed at ₹420.35 on the National Stock Exchange (NSE), marking a 1.33% decrease.

Corporate Governance Updates

In addition to the rebranding initiative, the Board has made several key decisions:

1. Appointment of M/s Makarand M Joshi & Co as the Secretarial Auditors for a five-year term from FY 2025-26 to FY 2029-2030, subject to shareholder approval.

2. Recommendation for the re-appointment of Mr. Anuraag Bhatnagar as Whole-Time Director, subject to shareholder approval.

These decisions, along with the financial statements and other items, will be presented for consideration at the upcoming Annual General Meeting scheduled for September 19, 2025.

As Schloss Bangalore Ltd embarks on this rebranding journey and continues to demonstrate strong financial performance, stakeholders will be keenly watching how these changes impact the company's market position in the luxury hospitality sector.

Schloss Bangalore Limited , operator of The Leela Palaces Hotels and Resorts, has reported robust financial results for the first quarter of fiscal year 2026, showcasing significant growth across key metrics.

Financial Highlights

• Total income rose 25% year-on-year to INR 301.00 crores
• EBITDA grew 63% to INR 128.00 crores
• EBITDA margins expanded by 980 basis points to 42.50%
• Company turned profitable with PAT of INR 8.70 crores, compared to a loss of INR 75.00 crores in Q1 FY25
• RevPAR increased 20%, driven by 4% occupancy growth to 64% and 13% ADR improvement

Operational Performance

The company's strong performance was achieved despite headwinds from geopolitical tensions and Operation Sindoor. Schloss Bangalore maintained a robust balance sheet post-IPO, with net debt of INR 227.00 crores, translating to a 0.3x net debt to EBITDA ratio.

Expansion Plans

Schloss Bangalore has signed agreements to expand into Mumbai's Bandra Kurla Complex (BKC) with a 250-key hotel through a 50-50 joint venture with Brookfield. This strategic move aims to tap into the underserved luxury hospitality market in BKC, which has seen no new hotel supply since 2011.

Future Outlook

Management expressed confidence in delivering double-digit EBITDA growth and targets reaching INR 2,000.00 crores EBITDA by FY30. This growth is expected to be driven by:

1. Same-store growth
2. New verticals like ARQ membership clubs
3. Expansion of owned hotels
4. Growth through Hotel Management Agreements (HMAs)

Key Developments

• Launch of ARQ, an invite-only membership club, starting with Bengaluru, Chennai, and Delhi
• Acquisition of 1.8 acres of land in Udaipur for expansion, adding 33 keys and 10,000 square feet of banquet space
• Ongoing ramp-up of the Leela Hyderabad in Banjara Hills

Anuraag Bhatnagar, Managing Director and CEO, commented on the results: "We have delivered our highest ever first quarter revenue, EBITDA, and margins. Our differentiated luxury brand, robust pipeline, and supportive industry tailwinds position us well to create sustained value for all our stakeholders."

The company's focus on the luxury segment, which remains significantly underserved in India, coupled with its strong brand recognition and expansion plans, sets a positive tone for Schloss Bangalore's future growth trajectory in the competitive hospitality market.