Subscribe for Schloss Bangalore Ltd IPO; Deven Choksey

Deven Choksey, Schloss Bangalore Ltd

Schloss Bangalore Limited, is a hospitality company operating hotels under “The Leela” brand, with a focus on delivering premium hotel experiences across key urban and leisure markets in India. Established in 2019 through the acquisition of The Leela Palace Bengaluru, the company has since expanded its footprint through a balanced portfolio of owned, managed, and franchised properties. As of March 31, 2025, its network comprises 13 hotels including 5 owned and 8 managed hotels, strategically located to serve a mix of business, travel and leisure travelers. The company adopts an integrated operating model that emphasizes service consistency, operational discipline, and measured growth. Schloss leverages both asset-heavy and asset-light approaches, to build a sustainable hospitality platform that aligns with evolving industry dynamics and long-term value creation.

Valuation and Outlook

The Company’s initial issue is priced at 31.0x FY25 EV/EBITDA, which is almost ~15% lower than the industry average. We believe the Schloss is expected to deliver improved earnings growth, better profitability led by reduced debt burden, healthy pipeline of upcoming hotels and industry leading sustainable margins driven by luxury segment focus. We assign a ‘Subscribe’ rating to the issue.