Brigade Hotel likely to add 960 rooms, expand luxury business by FY29

Brigade Hotel Ventures plans to add 960 rooms to its portfolio by FY28, targeting the luxury market. The company also aims to raise Rs 759.6 crore through its IPO, opening on July 24

Brigade Hotel Ventures is expected to add around 960 rooms to its current portfolio of over 1,600 keys by the financial years (FY) 2028 and 2029, with focus on expanding the luxury segment.

 

The hotel asset management company, which is part of the Brigade Group, is expected to raise ₹759.6 crore through its initial public offering (IPO). The IPO will open on July 24 and close on July 28. It comprises fresh issues of shares worth ₹759.6 crore with a face value of ₹10 each. The price band of the issue is fixed at ₹85 to ₹90 per equity share.

 

From the funds raised in the IPO, around ₹468 crore will be used to completely pay off the company’s institutional debt, said Ananda Natarajan, chief executive officer (CFO), Brigade Hotel Ventures. The rest of the funds will be used to invest in and buy a land parcel in Hyderabad for a hotel project, and about ₹90 crore will be used to buy potential opportunistic purchases (like land parcels), he added. 

 

“One of the objectives of the IPO is to allow for this new entity to explore markets where the parent (company) is not already in. For example, it could be strong leisure markets like Goa or it could be strong religious tourism markets. We are also interested in being present in the western region,” said Nirupa Shankar, managing director, Brigade Hotel Ventures.

 

“India has huge scope in the branded rooms segment. India can absorb another 50,000 to 100,000 rooms in the next five to seven years,” Shankar said.

 

Brigade Hotel Ventures has a strong presence in the southern market, with one hotel in GIFT City. Currently, it is present in five cities with plans to expand to two more cities, Shankar added.

 

The company has management contracts with international hotel brands, like Marriott International, Accor Hotels, and InterContinental Hotels Group (IHG) across nine operational properties.

 

Shankar said that Brigade Hotel Ventures has also signed a hotel with Hyatt Hotels and will add a Grand Hyatt in Chennai. Among its pipeline, it has six upcoming hotels with Marriott International and one with IHG. 

 

In terms of occupancy, the company’s rate across its portfolio is 77 per cent, while the industry’s average occupancy rate is around 65 per cent, Shankar noted. The revenue per available room (RevPAR) of the hotels rose by 14 to 15 per cent in FY25 on a year-on-year basis, and she anticipates this year’s RevPAR to hit record levels similar to last year.

 

She further added that the office market is a key driver of hotels in business cities, with Bengaluru being a major driver for the company’s revenue. The company is open to entering the branded residency segment, but has no immediate plans for it at present, she explained.