IPO-bound Brigade Hotel to expand footprint in South India amid travel boom

Riding the wave of India's resurgent domestic travel, IPO-bound Brigade Hotel Ventures Ltd (BHVL) is looking to expand its hospitality portfolio, solidifying its position as a leading hotel owner and developer in South India. The hospitality giant, that operates several brands, including Four Points by Sheraton, Grand Mercure, Holiday Inn, and Ibis Styles, plans to invest in new hotel developments to close the gap with rivals amid a booming domestic travel market. The company aims to increase its inventory to 2,600 keys by financial year 2028-29.

As part of expansion plans, Brigade Hotel Ventures, a wholly-owned subsidiary of Brigade Enterprises (BEL), plans to develop five new hotels across Chennai (Tamil Nadu), Bengaluru (Karnataka), Hyderabad (Telangana), and Vaikom (Kerala). The upcoming properties are intended to be operated by global marquee hospitality brands.

The company, a prominent owner and developer of hotels primarily in South India, proposes to develop three luxury hotels, including the Intercontinental Hyderabad at Brigade Neopolis, the Grand Hyatt Resort on East Coast Road (ECR) in Chennai, and another luxury resort in Vaikom Island, Kerala.

BHVL has entered into a non-binding term sheet with Hyatt in India to develop the resort in Chennai under the “Grand Hyatt” brand, with both parties yet to finalise the definitive management agreement. Additionally, BHVL plans to expand its presence in the upper midscale segment by intending to develop two branded hotels: one near the Bengaluru Airport and another in Hosur, Bengaluru. These hotels will operate under the ‘Fairfield by Marriott’ brand, following a non-binding memorandum of understanding (MoU) signed between BHVL and Marriott India Private Limited (Marriot). The terms of this MoU are subject to approval by Marriott’s board of directors and the signing of a definitive contract.

The company aims to complete the construction of the luxury beach resort in Chennai and the two upper midscale hotels in Bengaluru by the fiscal year 2028, with the remaining two hotels slated for completion by 2029. BHVL’s expansion strategy focuses on high-growth regions with demand, in line with its long-term strategic objectives.

Brigade Hotel eyes to raise ₹900 cr via IPO

Brigade Hotel Ventures, one of the biggest hotel-chain operators in South India, plans to raise ₹900 crore via initial public offering (IPO) route. The company filed its draft red herring prospectus (DRHP) with the capital market regulator Securities and Exchange Board of India (SEBI) on October 31, 2024, for which it received approval on February 04, 2025.

As per the DRHP filed with the SEBI, the issue is entirely a fresh issue of equity shares with a face value of ₹10 each, amounting  to ₹900 crore. The fund will be used for debt repayment, land acquisition, and business expansion. The IPO proceed will be mainly used to repay debt (₹481 crore), while ₹107.5 crore will be utilised for acquiring undivided share of land from its promoter, Brigade Enterprises. The remaining fund will be used for inorganic growth opportunities and other general corporate purposes.

Brigade Enterprises forayed into the hotel business in 2004. Currently, it has a portfolio of nine operating hotels across Bengaluru, Chennai, Kochi, Mysuru, and GIFT City, with a total of 1,604 keys. These hotels are operated by major hotel brands like Marriott, Accor, and InterContinental Hotels Group.

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