Brigade Hotel Ventures IPO Review by Paresh Gordhandas, CA & Research Analyst.
Brigade Hotel Ventures Limited, a wholly-owned subsidiary of Brigade Enterprises Ltd. (BEL), is a hospitality company owning and developing hotels in key cities, primarily across South India. It has a portfolio of nine operational hotels with 1,604 keys, located in Bengaluru, Chennai, Kochi, Mysuru, and GIFT City, and managed by renowned global chains such as Marriott, Accor, and IHG.
Leveraging BEL’s brand strength and expertise, the company benefits from integrated real estate developments, efficient cost structures, and economies of scale. Its asset ownership and lease-based model, combined with operator tie-ups, allows it to access global best practices while maintaining operational control.
In FY25, the company achieved average occupancy of 76.76%, higher than the industry average of 64.5%. It reported steady growth in keys (from 1,474 to 1,604), and has expansion plans including a Grand Hyatt resort in Chennai, two Fairfield by Marriott hotels in Bengaluru, and an InterContinental in Hyderabad.
The Indian hospitality sector is witnessing robust growth, with the travel and tourism sector expected to contribute Rs.43.3 trillion by 2034, growing at a 7.4% CAGR. Demand in Bengaluru, Chennai, and Hyderabad is projected to grow faster than supply, positioning the company well to capitalise on sectoral tailwinds.
On the financial front, revenue grew at a CAGR of 15.63% over FY23–FY25, rising from Rs.350.22 crore to Rs.468.25 crore. Net profit for FY25 stood at Rs.23.66 crore, despite high interest costs of Rs.72.56 crore. The company plans to repay Rs.46.81 crore from IPO proceeds, which will reduce interest burden and support profitability. Its operating margins are comparable to The Indian Hotels Ltd.
While the shares may seem priced at a high PE multiple, the projected market cap-to-revenue ratio of 12 suggests a fair post-listing value range of Rs.148–154.
Chanakya’s View: Despite rich valuations, this IPO is worth considering as a long-term investment bet on India’s growing hospitality sector.
Brigade Hotel Ventures IPO Review
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