1. At a Glance
A ₹759 Cr all-fresh issue IPO by Brigade Hotel Ventures — a hospitality subsidiary of Brigade Enterprises Ltd — offering investors a seat at the table in South India’s luxury hotel space. But with 125x P/E, are we booking a suite… or sleeping in baggage claim?
2. Introduction with Hook
You’re checking into a Brigade Marriott in Bangalore, sipping overpriced filter coffee. Now imagine owning a piece of it. Brigade Hotel Ventures Ltd. (BHVL) wants to turn that daydream into an IPO.
- ₹759.6 Cr fresh issue
- 1,604 rooms across 9 hotels
- Operated by Marriott, Accor, IHG
- Revenue up 16%, but PAT fell 24%
- Debt/Equity? A spicy 7.4x
- P/E: 125x — not for the faint-hearted
They promise growth. But should investors check in… or check out?
3. Business Model (WTF Do They Even Do?)
BHVL is the hospitality arm of real estate giant Brigade Enterprises Ltd.
They don’t run hotels; they own them — and outsource operations to global hotel chains like:
- Marriott
- Accor
- InterContinental Hotels Group
Their revenue = room nights + food & beverage + MICE events (Meetings, Incentives, Conferences, Exhibitions)
Hotel Portfolio:
- 9 hotels
- 1,604 keys
- Locations: Bangalore, Mysuru, Kochi, Chennai, GIFT City
It’s a brick & mortar, luxury & lifestyle game. Think Hilton meets high leverage.
4. Financials Overview
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 356.4 | 404.9 | 470.7 |
| EBITDA | 113.9 | 144.6 | 166.9 |
| PAT | -3.09 | 31.1 | 23.7 |
| Net Worth | 33.8 | 58.7 | 78.6 |
| Borrowings | 632.5 | 601.2 | 617.3 |
PAT fell 24% in FY25 despite rising revenues.
Carrying ₹196 Cr in accumulated losses. Hmm…
5. Valuation
| Metric | Value |
|---|---|
| EPS (Post Issue) | ₹0.72 |
| P/E | 125x |
| P/BV | 32.26x |
| ROCE | 13.62% |
| Market Cap | ₹3,418 Cr |
| Book Value/Share | ₹2.8 |
Fair Value Range Estimate:
Even giving a generous 40–50x P/E multiple = ₹28–₹36
Yet they’re asking ₹90 per share.
Investor translation: You’re paying today for tomorrow’s EBITDA.
6. What’s Cooking – News, Triggers, Drama
- ₹468 Cr of IPO funds going to debt prepayment
- Land deal with promoter (BEL) for ₹107.5 Cr raises eyebrows
- Strategic expansion into GIFT City, Tier-2 luxury demand
- India’s hotel sector seeing ADR + occupancy spikes post-COVID
- High-profile operator tie-ups signal long-term play
Also: This isn’t their first rodeo. Brigade’s got real estate DNA. This one’s just wearing a bathrobe.
7. Balance Sheet
| Item | FY25 |
|---|---|
| Assets | ₹947.6 Cr |
| Net Worth | ₹78.6 Cr |
| Borrowings | ₹617.3 Cr |
| Debt/Equity | 7.4x ❌ |
| Net Debt (Post IPO) | Likely down to ~2.0x ✅ |
Post-IPO Debt Repayment:
Should clean up leverage and bring stability — if revenue rises with it.
8. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Cash Flow from Ops | +85.3 | +102.4 | +123.7 |
| Capex | -55.4 | -69.1 | -72.6 |
| Financing (Debt servicing) | -40.1 | -42.3 | -45.0 |
Key Callout:
Hotel biz = capex heavy. High operating cash flow needed just to stay afloat, forget dividends.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 13.6% ✅ |
| PAT Margin | 5.03% ⚠️ |
| EBITDA Margin | 35.5% ✅ |
| Debt/Equity | 7.4 ❌ |
| P/E | 125x ❌ |
| ROE | 30.11% (due to low equity) ✅ |
A weird blend of “profitable optics” but highly geared internals.
10. P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 356.4 | 404.9 | 470.7 |
| EBITDA | 113.9 | 144.6 | 166.9 |
| Depreciation + Interest | 147.6 | 110.3 | 143.2 |
| PAT | -3.09 | +31.1 | +23.7 |
EBITDA margin solid, but PAT dipped due to high interest burden — again, IPO funds are meant to fix that.
11. Peer Comparison
| Company | P/E | ROCE | Rooms | Asset Type |
|---|---|---|---|---|
| BHVL | 125x | 13.6% | 1,604 | Full ownership |
| Chalet Hotels | 75x | 11% | 2,900 | Mixed |
| Lemon Tree | 70x | 9.5% | 8,500 | Mixed |
| Indian Hotels | 65x | 15% | 19,000+ | Luxury + Budget |
Brigade is smallest but priciest in the peer list.
12. Miscellaneous – Shareholding, Promoters
| Stakeholder | Holding Pre-IPO | Post-IPO |
|---|---|---|
| Brigade Enterprises | 95.26% | 74.09% |
| Public | Nil | 25.91% |
- Promoter = listed realty major (BEL)
- Lead Managers = JM Financial, ICICI Sec
- Registrar = KFinTech
- Shareholder Quota? Yes, if you own BEL shares
13. EduInvesting Verdict™
Brigade Hotel Ventures IPO is like a 5-star stay in Maldives… with EMI.
The company offers:
- Real assets ✅
- Global operators ✅
- High-margin segment ✅
- Consistent topline growth ✅
But…
- Extremely high valuation ❌
- Declining PAT ❌
- High historical debt ❌
- Land purchase from promoter? 🚩
This is not a listing gain IPO — this is a patience play, banking on India’s travel boom, rising ADRs, and hotel scarcity.
If you can wait a few years for earnings to catch up with price, it’s worth a look.
If you’re looking for a quick flip… room service won’t come.
Metadata
– Written by EduInvesting Team | July 23, 2025
– Tags: Brigade Hotel Ventures IPO, BHVL IPO, Brigade Group, Hospitality IPO, Hotel Sector IPO, Marriott Accor, KFinTech, JM Financial, ICICI Securities
