“The process has begun and the DRHP (Red Herring Draft) will be submitted in about two weeks,” said one of the people mentioned above. “The money will be used to fund the growth plans for hotels and hotel spaces.”
The second person also requested anonymity. “In addition to growth, some of the funds can be used to cut debt.”
Prestige Hospitality Ventures is a wholly owned subsidiary of Prestige Estates Projects Ltd, which owns all hotel assets and projects of all hotel assets and projects at its headquarters in Bangalore. The company owns properties such as JW Marriott Prestige Golfshire and Conrad Bengaluru.
Read also | As the prosperity develops, hotel investments move to smaller cities
In the context of the real estate profession, the public move puts its hotel business expansion plans in the context of the country’s booming hospitality and tourism market.
Prestige hospitality program
As a real estate company, Prestige Group focuses primarily on residential and commercial projects, but has also established and expanded hotel and shopping mall properties. The group has said last year it plans to double its hospitality portfolio within three to four years.
Prestige’s hotel portfolio includes eight operating hotels (1,477 keys) and four ongoing projects (1,137 keys). Now, it is developing the Delhi air-flavored St Regis Hotel and Marriott Hotel and Convention Center, accumulating nearly 800 keys and more.
According to its latest investor speech, the developer also owns 11 hotel projects, including 11 hotel projects with about 2,146 keys in Bangalore, Chennai, Mumbai, Goa, Hyderabad and Hassan (near Bangalore).
Read also | Prestige Estates is ready for a large launch in H2, but timely approval is key
In March 2024, Prestige signed an agreement with global hotel giant Marriott International to develop six hotel projects in the country within two to five years.
During the first nine months of FY25, Prestige operated hotels reached average room rate (ARR) ₹14,139 and revenue per available room or RevPAR ₹Speech, 8,522. Revpar measures the average income generated per room over a specific period.
Hotel IPO
Although the main market is now considered to be more dynamic than the previous calendar year for analysts and bankers, the situation is different for hotels and hotel companies, especially with the rise in average personal income and the obvious desire for urban youth in the country to spend on luxury work and family activities.
Nikhil Shah, senior director and senior director and head of real estate consulting firm Colliers India Colliers India, said the hotel is expanding due to strong domestic demand and good condition.
“Hotel companies want to go public in the current situation to list the market,” Shah said. “The market’s interest in IPOs. However, given the current market prices, IPO valuations may be more realistic.”
Read also | A long way to go for the unique and realistic real estate name
To be sure, Prestige’s proposed IPO will follow a slew of hospitality IPOs in recent months, including Samhi Hotels (in September 2023), Juniper Hotels (February 2024), Park Hotels (February 2024) and, most recently, the December listing of Ventive Hospitality Ltd, a joint venture between real estate developer Panchshil Realty and global asset manager Blackstone.
More hospitality IPOs are expected to be available in the coming months. Bangalore-based real estate company Travel Group’s Hotels Co., Ltd. received Sebi approval in February ₹90 billion IPO. Schloss Bangalore, the parent of the Lira Palace hotel and resort owned by Brookfield, also secured its nod for the market regulator ₹The proposed IPO of Rs 50,000 crore is likely to be the country’s largest hospitality industry IPO.
“The next two to three years should continue to see high demand for hotels driven by domestic demand; business travel should also be done well,” Shaa said, warning that U.S. tariff announcements could impact future IPOs. “We have to see how it works,” he said.
Read also | How this real estate novice kills with his ace
according to Indian Hotel Market Review 2024The organized hospitality industry in India, released by consulting firm Horwath HTL, will add more than 100,000 rooms to more than 300,000 highways in 2029. For the first time, the hotel chain has crossed 200,000 brands of rooms, adding 14,000 rooms to its inventory in India in 2024.
