JPMorgan has initiated coverage on The Leela – Schloss Bangalore (listed entity managing The Leela hotels) with an Overweight rating and target price of ₹510, citing exceptional hospitality performance and premium pricing power.
The brokerage underscored the company’s industry-leading margins and RevPAR, with the blended portfolio delivering an average room rate significantly higher than the luxury segment average. Managed properties currently enjoy an ARR and RevPAR premium of 1.3–1.4x over industry benchmarks.
JPMorgan projects that the company will sustain a 40% ARR premium to the broader luxury hospitality industry through FY26–FY28, maintain 70%+ occupancy in owned properties by FY27, and deliver a 10% like-for-like RevPAR CAGR over FY25–28. EBITDA margins are also expected to stay above 46%, reflecting strong cost control and operational efficiency.
The brokerage also noted recent structural expansions including a new hotel plot awarded in BKC, Mumbai, for development of a 250-room property. Additionally, the company plans to add seven hotels by FY28, tapping into business and leisure segments in key tourist destinations.
Valuation remains compelling at ~18.5x FY27 EV/EBITDA, well below comparable luxury peers. JPMorgan believes the combination of strong financials, geographic expansion, low leverage, and sustainable pricing power positions Schloss Bangalore as a value play in the luxury hospitality space.
