Brigade Hotel Ventures Limited is an owner and developer of hotels in key cities in India primarily across South India. They are the second largest owner of chain-affiliated hotels and hotel rooms in South India (comprising the states of Kerala, Andhra Pradesh, Tamil Nadu, Karnataka, Telangana, and the Union territories Lakshadweep, Andaman and Nicobar Islands and Pondicherry) among major private hotel asset owners as of March 31, 2025. The Promoter, Brigade Enterprises Limited ('BEL') entered into the hospitality business in 2004 with the development of the first hotel Grand Mercure Bangalore, which commenced operations in 2009. As of the date of this Red Herring Prospectus, they have a portfolio of nine operating hotels across Bengaluru (Karnataka), Chennai (Tamil Nadu), Kochi (Kerala), Mysuru (Karnataka) and the GIFT City (Gujarat) with 1,604 keys. The hotels are operated by global marquee hospitality companies such as Marriott, Accor and InterContinental Hotels Group and are in the upper upscale, upscale, upper-midscale, and midscale segments. Company has a proven track record of developing marquee hotels across various geographies and different hospitality segments. The number of keys has grown over the years, from 1,474 keys as of March 31, 2023 to 1,604 keys as on the date of this RHP. Further, the average occupancy in Fiscal 2025 was 76.76% which was higher than the industry annual occupancy inFiscal 2025 of 64.5%. Company intend to develop five additional hotels. In particular, they intend to develop a luxury beach resort at ECR in Chennai (Tamil Nadu) and two upper midscale hotels in Bengaluru (Karnataka). With respect to the luxury beach resort, they have entered into a management agreement with Hyatt to develop the resort under the 'Grand Hyatt' brand. Similarly, with respect to the two upper midscale hotels in Bengaluru (Karnataka), they have entered into definitive agreements with Marriott to develop these hotels under the 'Fairfield by Marriott' brand. They also intend to develop a luxury hotel under the InterContinental brand in Hyderabad (Telangana), for which the Promoter, BEL, has entered into a definitive agreement with InterContinental Hotels Group. In addition, they plan to develop a wellness resort on 14.70 acres in Vaikom, Kerala of which they own 7.08 acres and have entered into a memorandum of agreement dated October 21, 2024 with Brigade Hospitality Services Limited to purchase the balance 7.62 acres.They have also entered into a definitive agreement with Marriott to develop this resort under ‘The Ritz-Carlton’ brand. They intend to complete the construction of the luxury beach resort in Chennai (Tamil Nadu) and two upper midscale hotels in Bengaluru (Karnataka) by Fiscal 2028 and the remaining two hotels (including the wellness resort) by Fiscal 2029. As per financial performance, Brigade Hotel Ventures Limited has posted total income / net profits of Rs 356.41 Cr / (3.09) Cr (FY23), Rs 404.85 Cr / Rs 31.14 Cr (FY24) and Rs 470.68 Cr / 23.66 Cr (FY25). So as per previous financials data, company has shown average growth. Company has an average EPS of Rs 0.63 and average RoNW of 31.20% for last three fiscals. Issue is priced at a P/BV of 32.26 as per NAV of Rs 2.79/- as on 31.03.25. If we attribute latest earnings of FY23, FY24 and FY25 on equity post issue, then asking price is at a P/E of around NA, 109.78 and 144.48 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, two lead managers ICICI Securities Limited and JM Financial Limited are associated with this IPO, and have handled 99 IPOs in last three fiscals. ( As on 21.07.25 ) As per financials, Brigade Hotel Ventures Limited has shown average sales growth, RoNW is 30.11% and P/E is NA, 109.78 and 144.48 respectively as per FY23, FY24 and FY25 earnings. When compared with listed peers, issue looks fully priced. Company is an owner and developer of hotels, the sector is expected to grow at good rate but also high competition. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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