Is Brigade Hotel Ventures IPO Good or Bad – Detailed Review

Brigade Hotel Ventures Limited is kicking off its initial public offering, which will be open from July 24, 2025, to July 28, 2025. While considering applying for this IPO, certain questions may arise in your mind, including whether the Brigade Hotel Ventures IPO is good or bad, whether it is worth investing in this IPO, and so on. 

This article offers a comprehensive Brigade Hotel Ventures IPO review, covering its business operations and fundamental analysis to help you make an informed investment choice.

Brigade Hotel Ventures IPO Review

Brigade Hotel Ventures is gearing up for its Initial Public Offering (IPO), aiming to raise Rs 759.60 crore. The proceeds will primarily be used for repaying borrowings, acquiring land, and pursuing growth through acquisitions.

Brigade Hotel Ventures has shown steady revenue growth from FY23 to FY25, driven by its portfolio of nine operating hotels across South India. EBITDA and profit have improved significantly. While the company’s ROCE has improved to 13.62% in FY25, the ratio still needs further improvement to enhance overall profitability and efficiency.

Brigade Hotel Ventures reported revenue of Rs 468.25 crore in FY25, making it the smallest among its peers, with companies like The Indian Hotels Company Limited reporting significantly higher revenues, such as Rs 8,334.54 crore. However, the company outperforms its peers in terms of Return on Net Worth (RoNW), achieving an impressive 30.11% in FY25.

While the company demonstrates strong growth potential with its strategic hotel locations and partnerships with global hospitality brands, it faces risks such as revenue concentration in select locations and reliance on key hotel operators. 

That said, potential investors are strongly advised to conduct their own independent analysis and consult financial advisors before making any investment decision. Keep reading to find out more about the company’s background, business model, and growth strategy.

Company Overview of Brigade Hotel Ventures IPO

Brigade Hotel Ventures Limited is a leading owner and developer of hotels across key cities in South India, including Kerala, Andhra Pradesh, Tamil Nadu, Karnataka, Telangana, and the Union Territories of Lakshadweep, Andaman and Nicobar Islands, and Pondicherry. As of March 31, 2025, the company is the second-largest owner of chain-affiliated hotels and hotel rooms in South India among major private hotel asset owners (Source: Horwath HTL Report).

The company’s Promoter, Brigade Enterprises Limited (BEL), entered the hospitality sector in 2004 with its first hotel, Grand Mercure Bangalore, which began operations in 2009. Brigade Hotel Ventures currently operates nine hotels across Bengaluru, Chennai, Kochi, Mysuru, and GIFT City, totaling 1,604 keys, managed by global hospitality brands like Marriott, Accor, and InterContinental Hotels Group.

Its hotels are located in high-demand areas, including business hubs, commercial centers, and premium neighborhoods, providing a range of amenities such as fine dining, MICE facilities, swimming pools, and spas. The company has grown its number of keys from 1,474 in 2023 to 1,604 in 2025. The average occupancy rate in Fiscal 2025 was 76.76%, higher than the industry average of 64.5%.

Operating on a business model focused on owning or leasing hotel assets, the company collaborates with global hospitality brands for hotel operations. This partnership provides access to best practices, marketing strategies, and operational expertise. Key initiatives for optimizing expenses include energy conservation, staffing optimization, and leveraging technology for improved cost-effectiveness.

Industry Overview of Brigade Hotel Ventures IPO 

According to the Horwath HTL Report, the future demand in India's hospitality sector is expected to be driven by a diverse range of travel needs, including business, leisure, MICE (Meetings, Incentives, Conferences, and Exhibitions), weddings, social events, pilgrimages, personal travel, political and business delegations, and airline crew accommodations.

As reported by the World Travel & Tourism Council (WTTC), the travel and tourism sector contributed Rs. 15.7 trillion to India's economy in 2022, and this contribution increased to Rs. 19.1 trillion in 2023. The WTTC's Economic Impact Factsheet, released on June 28, 2024, estimates the sector's contribution at Rs. 21.2 trillion for 2024, with a projected growth to Rs. 43.3 trillion by 2034, representing a compound annual growth rate (CAGR) of 7.4% from 2024 to 2034.

In addition, the Hotel Association of India (HAI) forecasts that foreign tourist arrivals (FTAs) will exceed 30 million by 2037. Furthermore, estimates from Booking.com and McKinsey suggest that domestic visits will reach approximately 5 billion by 2030, with the HAI projecting 15 billion domestic visits and 100 million FTAs by 2047.

Financial Overview of Brigade Hotel Ventures IPO

The company’s revenue from operations has demonstrated consistent growth, rising from Rs 350.22 crore in FY23 to Rs 401.7 crore in FY24, and further to Rs 468.25 crore in FY25. This growth has been primarily driven by its hospitality services, including significant contributions from Food & Beverage (F&B) revenue, which increased from 31.30% of revenue in FY23 to 32.75% in FY25.

EBITDA has maintained an upward phase, rising from Rs 113.98 crore in FY23 to Rs 144.61 crore in FY24, and further to Rs 166.87 crore in FY25. The EBITDA margin increased from 31.98% in FY23 to 35.72% in FY24, and then slightly decreased to 35.45% in FY25.

The company reported a loss of Rs 3.09 crore in FY23, which turned into a profit of Rs 31.14 crore in FY24. However, this profit then declined to Rs 23.66 crore in FY25. This slight decline in FY25's profit, despite an improving trend in profits before taxes, was influenced by a deferred tax charge. Despite the overall improvement, the ROCE increased from 8.64% in FY23 to 13.62% in FY25, but still requires further improvement in efficiency.

Strengths and Risks of Brigade Hotel Ventures IPO

Let’s dive into the strengths and weaknesses to assess if the Brigade Hotel Ventures IPO is good or bad for investors.

Strengths 

• Strategic Hotel Locations: The company owns and develops nine award-winning hotels with 1,604 keys across South India, strategically located near airports and business districts. Their diversified offerings, including fine dining and MICE venues, drive significant revenue.

• Focus on Operational Efficiency: Collaborating with global hospitality brands, the company optimizes hotel performance by leveraging best practices and reducing costs through space utilization, energy savings, shared services, facility upgrades, staff optimization, and technology.

• ESG Commitment: Brigade Hotel Ventures incorporates energy-efficient technologies and sustainable practices. Its hotels achieved EDGE certification in June 2025, highlighting reduced energy, water usage, and carbon emissions.

• Strong Parentage: As a subsidiary of Brigade Enterprises Limited (BEL), the company benefits from BEL's brand, market expertise, and resources, enabling cost-effective hotel development and strategic land acquisition.

• Industry Growth Opportunities: Positioned to capitalize on India's growing hospitality demand, the company benefits from increasing domestic and inbound travel, MICE events, and limited new supply in key markets.

Risks

• Reliance on Hotel Operator Agreements: The company is highly dependent on agreements with Marriott, Accor, and InterContinental Hotels Group, with Marriott contributing 43.81% of revenue in Fiscal 2025. Termination or non-renewal of these agreements could negatively impact operations and financial performance.

• Revenue Concentration in Key Locations: A large portion of revenue is derived from four hotels in Bengaluru, contributing 63.21% in Fiscal 2025. Specific hotels, including Sheraton Grand Bangalore and Holiday Inn properties, contribute 62.02% of revenue. Adverse developments at these locations could significantly affect business.

• Development Risks for New Hotels: The company plans to develop five additional hotels, but risks like delays, cost overruns, and approval challenges could impact its growth and financial results.

• Dependence on F&B Revenue: Food and beverage sales contribute 32.75% of revenue in Fiscal 2025. A decline in demand or failure to maintain quality could affect overall performance.

• Leasehold Rights and Office Location: The company’s registered office and some hotels are on leased land. The loss or non-renewal of these leasehold rights could disrupt operations and financial performance.

• Outstanding Debt and Covenants: With borrowings of Rs. 617.32 crore as of March 31, 2025, and restrictive covenants, any difficulty in servicing debt or complying with covenants could adversely affect the company’s financial condition.

Strategies of Brigade Hotel Ventures IPO

• Expand Operations by Developing New Hotels at Select Locations: The company aims to increase its presence by developing new hotels in high-growth potential areas across India, focusing on strategic locations near business districts and retail hubs. This includes plans for five additional hotels, aiming for approximately 2,560 keys by Fiscal 2029.

• Improve Operating Efficiencies and Revenue Potential: Brigade Hotel Ventures intends to further reduce operating expenses through measures like electric vehicles in its fleet, dynamic manning strategies, optimising staff-to-room ratios, and monitoring high-load power units. To boost revenue, they plan to continue annual rate increases for corporate accounts, introduce weekend packages, expand digital channel presence, and launch targeted marketing campaigns for niche segments.

• Expand Portfolio by Acquisitions: As part of its inorganic growth strategy, the company seeks to acquire operating hotels or commercial assets in new geographies across India that attract significant business and leisure travellers. This approach aims to consolidate its market position and strengthen its overall presence in the hospitality sector.

Brigade Hotel Ventures IPO Vs Peers

Source: RHP of the company

In terms of scale, the company reported an operating revenue of Rs. 468.25 crore in FY25. This is the smallest scale compared to all of its listed peers in the provided table. For comparison, the operating revenues of its peers ranged significantly higher, from Rs. 9,44.27 crore (Juniper Hotels Limited) up to Rs. 8,334.54 crore (The Indian Hotels Company Limited) in FY25.

Furthermore, the company’s Earnings Per Share (Basic and Diluted) for Fiscal 2025 stood at Rs. 0.72, which is again the least among its peers. Although, on the returns front, the company has generated a Return on Net Worth (RoNW) of 30.11% in Fiscal 2025, delivering the highest returns to its shareholders among all the companies in the list.

Objectives of Brigade Hotel Ventures IPO 

The company plans to utilize the net proceeds from the issue towards the following objectives:

1. Repayment/Prepayment of Outstanding Borrowings: A portion of the proceeds will be used to repay or prepay certain outstanding borrowings, including those availed by the company and its material subsidiary, SRP Prosperita Hotel Ventures Limited.

2. Payment for Undivided Share of Land: The company intends to use part of the proceeds to pay for the undivided share of land that it plans to purchase from its promoter, BEL.

3. Pursuing Inorganic Growth: The company will allocate funds towards pursuing inorganic growth through acquisitions that are yet to be identified, along with other strategic initiatives and general corporate purposes.

Brigade Hotel Ventures IPO Details

IPO Dates

Brigade Hotel Ventures IPO will be open for subscription from July 24, 2025, to July 28, 2025. The allotment of shares to investors will take place on July 29, 2025, and the company will be listed on the NSE and BSE on July 31, 2025.

IPO Issue Price

Brigade Hotel Ventures is offering its shares in the price band of Rs 85 to Rs 90 per share. This means you would require an investment of Rs. 14,940 per lot (166 shares) if you are bidding for the IPO at the upper price band.

IPO Size

Brigade Hotel Ventures is issuing a total of 8,44,00,000 shares, which are worth Rs 759.60 crores, and will be raised completely through a fresh Issue.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on July 29, 2025, through the registrar's website: KFin Technologies Limited, BSE, NSE, or their stockbroker platform.

IPO Listing Date

The shares of Brigade Hotel Ventures will be listed on the NSE and BSE on July 31, 2025.

IPO Application Link

Open demat account with Rupeezy today and enjoy a seamless experience when applying for the IPO. With an easy-to-use platform, Rupeezy makes the IPO application process quick and hassle-free.

Apply for Brigade Hotel Ventures IPO