<ul data-eligibleForWebStory="false"><li>Morgan Stanley has given an 'overweight' rating to Schloss Bangalore Ltd., operator of The Leela brand hotels, with a price target of Rs 549 due to strong demand for luxury experiences, iconic assets, and attractive valuation.</li><li>Schloss Bangalore is recognized as one of the few pure-play luxury hotel brands from India, known for its asset-heavy business model with renowned properties blending historical architectural styles with modern luxury.</li><li>The company is expected to see 12% annual Ebitda growth through FY27, driven by rising room rates and high occupancy, with a nearly net-debt-free balance sheet facilitating funding for upcoming capex cycle, including opening five new hotels by FY28.</li><li>Despite the positive outlook, there are concerns about concentration risk and the impact of a potential luxury downcycle due to high fixed costs and capex plans, as highlighted by Morgan Stanley.</li></ul>

Leela Hotels Has Morgan Stanley 'Overweight' On Luxury Demand, Attractive Valuation

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