Another hotel company in India is seeking to go public.
An initial public offering of Brigade Hotel Ventures, the hotels subsidiary fully owned by Bangalore/Bengaluru-based conglomerate Brigade Enterprises, seeks to raise 9 billion Indian rupees ($103.3 million). The Securities & Exchange Board of India approved the planned IPO on Tuesday, according to The Hindu Business Line.
Within that desired total IPO, approximately $55 million will be used to offset debt and approximately $12 million will be used to acquire an “undivided share of land from its promoter, Brigade Enterprises,” The Hindu Business Line reports.
Brigade Hotel Ventures, founded in June 2004, has nine standalone hotels in operation — some of its clubs and convention centers also contain a handful of guestrooms — and six hotels in the development pipeline. Its latest hotel is a joint venture with Accor, the 130-room Ibis Styles Mysuru, which opened in August.
The other operating hotels, mostly but not all in Bangalore, include the 272-room Holiday Inn Bengaluru Racecourse; 230-room Sheraton Grand Bangalore Hotel at Brigade Gateway; 218-room Four Points by Sheraton Kochi Infopark, a coastal property in the state of Kerala; 212-room Grand Mercure Bengaluru at Gopalan Mall; 202-room Holiday Inn Chennai Old Mahabalipuram Road Information Technology Expressway; 151-room Grand Mercure Ahmedabad Gift City; 146-room Grand Mercure Mysore, 90 miles southwest of Bangalore; and 129-room Holiday Inn Express & Suites Bengaluru Old Mahabalipuram Road.
Brigade Hotel Ventures also owns two convention centers in Bangalore, the MLR Convention Center Jayaprakash Nagar, which contains 12 guestrooms, and the MLR Whitfield. The company also has five membership and entertainment clubs in the portfolio that can be rented: Augusta, Galaxy, Regent, Signature and Woodrose.
Hospitality and tourism in India is growing rapidly in the country with the world’s largest population and an evolving middle class.
Since the National Stock Index of India launched the Nifty India Tourism Index in June, several Indian hotel companies have decided to go public or are in the process of doing so. The tourism index can track up to 30 companies from India's Nifty 500 Index and includes Indian Hotels Company Limited and others. In September, Leela Palaces, Hotels & Resorts filed an application via its owner Schloss Bangalore for a listing valued at 50 billion rupees.