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Future demand in the hospitality industry sector will be driven by diverse domestic and inbound travel needs – business, leisure, MICE, weddings, social events, pilgrimages and other personal travels, political and business delegations and airline crew. As per the World Travel & Tourism Council (WTTC), the travel and tourism sector’s contribution to India’s economy was ₹ 15.7 trillion in was estimated at ₹ 21.2 trillion for CY24, and is forecasted at ₹ 43.3 trillion for CY34, growing at 7.4% CAGR. Additionally, the Hotel Association of India (HAI) estimates foreign tourist arrivals (FTA) to cross 30 million in India by CY37 and Booking.com and McKinsey estimates around 5 billion domestic visits by CY30. Further, HAI forecasts 15 billion domestic visits and 100 million FTAs for CY47. The growth in FTAs is expected to strengthen hotel average daily rates, particularly for upper-tier hotels.
| Particulars | Details |
|---|---|
| IPO Open Date | July 24, 2025 |
| IPO Close Date | July 28, 2025 |
| Price Band | ₹85 to ₹90 per share |
| Lot Size | 166 Shares |
| Issue Size | 8,44,00,000 shares (aggregating up to ₹759.60 Cr) |
| Listing At | BSE, NSE |
| Tentative Listing Date | [To be updated] |
Brigade Hotel ventures Ltd. is an owner and developer of hotels in key cities in India, primarily across South India. It is the second largest owner of chain-affiliated hotels and hotel rooms in South India (comprising the states of Kerala, Andhra Pradesh, Tamil Nadu, Karnataka, Telangana, and the Union territories Lakshadweep, Andaman and Nicobar Islands, and Pondicherry) among major private hotel asset owners owning at least 500 rooms pan India as of March 31, 2025.
The company’s promoter Brigade Enterprises Ltd. entered the hospitality business in 2004 with the development of its first hotel, Grand Mercure Bangalore, which commenced operations in 2009. As of the date of this Red Herring Prospectus, the company has a portfolio of nine operating hotels across Bengaluru (Karnataka), Chennai (Tamil Nadu), Kochi (Kerala), Mysuru (Karnataka), and the GIFT City (Gujarat), with 1,604 keys. These hotels are operated by global marquee hospitality companies such as Marriott, Accor, and InterContinental Hotels Group and are in the upper upscale, upscale, upper-midscale, and midscale segments.
Brigade’s hospitality segment has demonstrated consistent growth across key operational and financial metrics over FY23–FY25, underpinned by strong post-pandemic recovery and effective asset monetization. The number of operational keys grew from 1,474 in FY23 to 1,604 in FY25, registering a CAGR of 4.3%, reflecting a measured expansion strategy. Revenue from operations increased from ₹3,502.2 million in FY23 to ₹4,682.5 million in FY25, achieving a robust 15.3% CAGR, supported by improving occupancy and rate realization. Average room rate rose from ₹5,943.57 in FY23 to ₹6,693.59 in FY25 (6.1% CAGR), while average occupancy improved from 69.59% to 76.76%, demonstrating strong demand and better inventory yield. Consequently, RevPAR rose at a healthy 11.4% CAGR to ₹5,138.18 in FY25. Brigade’s EBITDA expanded from ₹1,139.8 million in FY23 to ₹1,668.7 million in FY25, reflecting a CAGR of 20.9%, aided by both operating leverage and margin enhancement. The EBITDA margin stood strong at 35.45% in FY25, up from 31.89% in FY23, indicating improved cost control and efficiency gains.
Objects of the issue:
- Repayment of borrowings- ₹4681.40 million
- Buying land from BEL- ₹1075.19 million
- Pursuing inorganic growth and general corporate purposes
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