Brigade Hotel Ventures, a hotel owner and developer primarily located in South India, has filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India, aiming to raise up to INR 9 billion through a fresh issue of equity shares. The company may seek to raise an additional INR 1.8 billion through a pre-IPO placement. This move highlights the company’s growth potential and reflects the optimism surrounding India’s hospitality industry, with other major players like Schloss Bangalore also filing for substantial IPOs recently.
As a subsidiary of Brigade Enterprises, Brigade Hotel Ventures benefits from its parent company’s real estate expertise, entering the hospitality sector in 2004. With nine properties totaling 1,604 rooms spread across major urban centers in South India, Brigade Hotel partners with global hotel operators like Marriott, Accor, and InterContinental Hotels Group in various segments. The company either owns or leases hotel assets and engages these hospitality companies to operate, maintain, and market its properties under management contracts.
The IPO proceeds of INR 9 billion will be used by Brigade Hotel to repay a significant portion of its existing debt. The company plans to allocate INR 4.8 billion for debt reduction, with INR 4.1 billion aimed at its own debt and INR 690 million for outstanding borrowings of its material subsidiary. This move is expected to address over 79% of its consolidated debt and restructure finances across fiscal 2025 and 2026 to reduce interest burdens and enhance cash flow flexibility. The remaining funds will support Brigade’s expansion plans, focusing on developing new hotels across high-growth regions in India, including Goa and pilgrimage destinations.
Brigade Hotel’s expansion plans include the development of luxury properties under brands like Grand Hyatt and InterContinental, as well as Fairfield by Marriott hotels in Bengaluru. The company is targeting prime markets in Southern India and emerging tourism hotspots, with projects planned for completion by fiscal 2028 and fiscal 2029. Brigade also aims to venture into wellness tourism with a resort in Kerala and is actively pursuing potential acquisitions to grow its portfolio. These strategic moves reflect the company’s commitment to broadening its footprint and tapping into diverse market segments within the hospitality industry.
Despite incurring a loss of INR 58 million in the first three months of fiscal 2025 due to accounting adjustments related to a new tax regime, Brigade Hotel turned profitable in fiscal 2024. The company reported a profit of INR 311 million compared to previous losses, indicating a positive trend in its financial performance. Revenue from operations has been steadily increasing, reaching over INR 4 billion in fiscal 2024, with a significant portion derived from food and beverage operations. With a focus on debt reduction, expansion, and enhancing operational efficiency, Brigade Hotel Ventures is poised for growth and success in India’s dynamic hospitality industry.
