Schloss Bangalore, the operator of premium hotels under 'The Leela' brand, has secured land allotment for a new 250-key luxury hotel in Mumbai’s Bandra Kurla Complex (BKC). The announcement was made via stock exchange filing on 3 June following approval from the Mumbai Metropolitan Region Development Authority (MMRDA).

The project site, measuring 8,412 square metres, has been leased to Schloss Bangalore and its consortium partners for a period of 80 years. The total lease premium amounts to over Rs 13 billion. According to the terms, 25 per cent of the lease amount must be paid within two months of the allotment offer, with the remaining 75 per cent payable over the following ten months. Possession of the land will be granted only upon full payment.

Schloss Bangalore had submitted its bid for the project in February this year. The new hotel is expected to bolster the company’s presence in India’s commercial capital, targeting high-end business and luxury travellers.

On 2 June, Schloss Bangalore made its stock market debut on the BSE at Rs 406.50 per share, reflecting a 6.55 per cent discount to its IPO price of Rs 435. Despite the initial weakness, the stock quickly rebounded, rising nearly 7 per cent to close just below its issue price at Rs 434. At closing, the company’s market capitalisation stood at over Rs 145 billion.