Brookfield Asset Management's Leela Palaces, Hotels and Resorts is preparing to file draft papers for an IPO soon. According to Moneycontrol, this could be the biggest IPO ever in India's hotel sector. As this luxury hospitality chain wants to raise Rs 5,000 crore.

According to the report, this is a big issue for the hospitality sector. An application will soon be made to the Securities and Exchange Board of India (SEBI) regarding this. The primary component is Rs 3,000 crore, which will be used for capital growth. The secondary component is Rs 2,000 crore, in which promoter Brookfield wants to reduce its stake.

11 investor banks including Kotak Mahindra Capital, JM Financial, BofA Securities, Morgan Stanley, JP Morgan, Axis Capital, Citi, ICICI Securities, IIFL Capital, Motilal Oswal and SBI Caps will manage the share sale.

In March 2019, Toronto-based Brookfield bought four properties of Leela in Delhi, Bangalore, Udaipur and Chennai from JM Financial Asset Reconstruction Company for Rs 3,950 crore. Since then, Leela Palaces has put the business back on track for growth. Leela Palaces Mumbai will not be included in the Canadian firm's IPO. It is already listed as Hotel LeelaVenture Ltd (HLV).

In an interview with CNBC TV-18 in May 2024, Ankur Gupta, Asia Pacific and Middle East head of Brookfield's real estate group, said the Canadian firm's investment in Leela Palaces, Hotels and Resorts in 2019 was more than just a bet on real estate. It was a strategic investment in a luxury brand.

Gupta told in an interview in May 2024 that Leela Palaces plans to open around 20 hotels across India. It started with eight hotels and now its number has increased to 15. Recently, Pune-based real estate developer Panchshil Realty and global investment firm Blackstone filed draft of their IPO documents to raise Rs 2,000 crore. Both these firms have a portfolio of luxury hospitality assets. Along with this, there is also a joint venture between the two and Ventive Hospitality.