Hospitality Experience
Leela Hotels – Brand Valuation
Hotel Leelaventure Ltd. has been in hospitality business since the mid-1980s, owning and operating hotels under the ‘Leela’ brand. The owners were desirous of valuing the ‘Leela’ hotel brand. Horwath HTL was appointed to provide a valuation of the Leela brand, on behalf of the promoters of the luxury Leela Group of Hotels and Resorts.
Project Scope
Hotel Leelaventure Ltd., a prominent name in the luxury hospitality sector since the mid-1980s, sought a valuation of its iconic ‘Leela’ hotel brand to better understand its intrinsic market value. The promoters of the Leela Group of Hotels and Resorts engaged Horwath HTL to carry out this critical assessment, leveraging their expertise in brand valuation within the hospitality industry.
The valuation process entailed a comprehensive analysis of the brand’s market position, reputation, and contribution to the overall business. This included a detailed evaluation of the brand’s financial performance, historical and projected revenue streams, and the premium pricing achieved by Leela properties due to their strong brand equity. Additionally, the study assessed the operational aspects, including the influence of the brand on occupancy levels, average daily rates, and customer loyalty.
Horwath HTL’s methodology incorporated intangible asset valuation techniques, analysing factors such as brand awareness, perceived quality, customer satisfaction, and market differentiation. The valuation also considered external market trends, competitive benchmarking, and the brand’s alignment with emerging luxury hospitality demands. Scenarios reflecting potential brand extension opportunities and risks were factored into the analysis, offering a nuanced perspective of the brand’s long-term value.
The valuation provided the Leela Group’s promoters with a detailed and substantiated understanding of the brand’s worth, underpinning strategic decisions related to future brand development, partnerships, or asset transactions. By accurately quantifying the brand’s contribution to the Leela Group’s success, Horwath HTL reinforced the significance of the ‘Leela’ name as a cornerstone of luxury in Indian and global hospitality.
