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Schloss Bangalore (Leela Palaces Hotels Resorts), an institutionally owned and managed pure-play luxury hospitality company, plans to venture into multi-use asset management blending luxury hospitality with business and residential offerings.
India has an existing stock of 858 branded residences associated with hotel brands, with a pipeline of another 2,040 units across New Delhi, Gurgaon and Mumbai, as per industry report.
As part of its strategy to capitalize on the value of The Leela brand and in response to the increasing demand for luxury residential experiences, the company plans to launch branded serviced residences that are integrated with its luxury hotels and resorts, as per management’s comments in DRHP.
These properties aim to offer a high-end living environment that reflects the luxurious standards of Leela’s hospitality services. They will appeal to affluent buyers seeking premium, branded living spaces.
Ancillary hospitality segments such as serviced apartments are expected to continue to gain traction on the back of increasing disposable income.
The Leela Palaces Hotels Resorts are also expanding into the business of luxury serviced apartments, designed to provide long-stay guests with a home-like environment enhanced by hotel-level services.
The initiative caters to a growing market segment seeking extended stays with the convenience of residential living and luxury of hotel services.
The move will enable the company to diversify revenue streams and capitalise on the growing market for high-quality serviced residences.
Leela Palaces Hotels Resorts is one of the largest luxury hospitality companies with 3,382 keys across 12 operational hotels as of May 31, 2024.
The company has recently renovated all the hotels owned by the company with an investment of ₹654.6 crore.
The company plans to replicate the success story of The Leela Ambience Gurugram Hotel & Residences and The Leela Bhartiya City Bengaluru in attracting corporate events and guests.
The company will receive royalty fees and management fees for the use of The Leela brand in connection with the sale of the interests in these projects as well as management of these projects.
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