Prestige Hotel Files ₹2,700 Cr IPO For Growth

As per the DRHP, the company plans to deploy an estimated Rs 1121.3 crore from the net proceeds towards the full or partial repayment of borrowings of itself and proceeds towards the full or partial repayment of borrowings of itself and its material subsidiaries. Sai Chakra Hotels and Northland Holding Company as well as for strategic acquisitions and general corporate purposes. Rs 397.2 crore will be allocated towards direct loan repayments, and Rs 724 crore will be invested in subsidiaries.

Prestige Hotel Ventures Limited, a hospitality asset owner and developer under the umbrella of real estate major Prestige Group, has filed its Draft Red Herring Prospectus along with the Securities and Exchange Board of India for launching a public offering aggregating up to ₹ 2,700 crores.

The IPO consists of a fresh issue of equity shares worth up to Rs 1,700 crore and an offer for sale component of up to Rs 1,000 crore by its promoter entity, Prestige Estates Projects Limited. The face value of the equity shares is Rs 5 each.

According to the DRHP, the company plans to deploy an estimated Rs 1,121.3 crore from the net proceeds to fully or partially repay borrowings of itself and its material subsidiaries, Sai Chakra Hotels and Northland Holding Company, for strategic acquisitions, and general corporate purposes. Rs 397.2 crore will be allocated towards direct loan repayments, and Rs 724 crore will be invested in subsidies.

Prestige Hotel Ventures is focused on developing and managing luxury, upper upscale, and upper-midscale hospitality assets for both business and leisure travellers. As of December 31, 2024, the company operates a portfolio of seven hotels with 190 keys, all of which are currently under renovation. Additionally, three ongoing projects are expected to add 951 keys, and nine upcoming properties have 1558 keys in the pipeline.

The company’s hospitality footprint spans major metro cities, including Bengaluru, Delhi-NCR, Mumbai, Goa, Hyderabad, and Chennai. These assets are strategically located near key commercial hubs, airports, and tourist destinations, further enhancing viability.

Prestige Hotel Ventures said it has aligned with some of the world’s leading hospitality brands. It has franchise or management agreements with Marriott International across multiple brands, including St. Regis, JW Marriott, W Hotels, and Moxy, as well as with Hilton’s Conrad and Banyan Group’s Angsana. Notably, the company accounts for 9% of the Marriott-managed hotel portfolio in India. The company’s revenue from hospitality services has shown robust growth, increasing from Rs 191.7 crore in FY22 to Rs 795.7 crore in FY24, a compound annual growth rate of 103.7 per cent. Revenue in the nine months ended December 2024 stood at Rs 662.7 crore, up from Rs 560.3 crore in the same period the previous year. JM Financial, CLSA India, JP Morgan India, and Kotak Mahindra Capital are the book-running lead managers for the IPO.

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