‘Leela deal worth the price; such assets not built quickly’
real estate, Ankur Gupta, and the hotel business’s chief executive officer Anuraag Bhatnagar, said the business has doubled in terms of earnings before interest, taxes, depreciation and amortization (Ebitda), commercial growth and overall revenue. Besides, it has expanded its presence from 8 to 12 operational hotels post-pandemic, including in Gandhinagar and Bengaluru. Edited excerpts: Gupta: Yes, it is a unique investment for Brookfield.
Assets like these can’t be built overnight. The business had some elements missing. For instance, it was in bankruptcy.
Most of our investments are for long term. Leela had its share of capital challenges which needed to be solved from day one. Prior to 2019, people had started saying that foreign capital did not take an interest in Indian hotels.
It is because hotels are not an easy business. It’s not like buying a leased office building and giving it out on rent. You empty your entire tenancy every morning and fill it up again.
It’s not easy, and it has an asset-heavy component. Ultimately, brands are built on assets. Who is really building these assets anymore? We are not competing with anyone in the hotel business.
Competition for the Leela brand doesn’t exist in India. Bhatnagar: The family brought a vision to the business. There was nothing incidental in the way the luxury was planned.
Our job was to preserve that legacy. We now have access to capital, technology and best practices. Bhatnagar: We are looking at key cities where luxury can be served: Goa, Varanasi, Kabini, Ranthambore, Ooty.
We are open to all possibilities; managing is a great option, but also development and acquiring properties. All the options are on the table. We are actively looking at the right markets to
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