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Prestige Hospitality Ventures, the hospitality division of Prestige Estates Projects, has received approval from SEBI to go ahead with its INR 2,700 crore initial public offering. The IPO will comprise a fresh equity issue of INR 1,700 crore and an offer-for-sale of INR 1,000 crore by the parent company. The company plans to use the proceeds to reduce debt and fund future acquisitions. With nearly 1,500 rooms currently in operation and a robust pipeline of around 2,500 more, the company is strengthening its position in India's premium hospitality segment.
Prestige Hospitality Ventures Ltd, the hotel business of Bengaluru-based real estate major Prestige Estates Projects, has received regulatory clearance from SEBI to launch its INR 2,700 crore IPO. The company had filed the draft papers earlier this year, and SEBI has now issued an observation letter, which serves as an official go-ahead for the public issue. Advertisement
The proposed IPO includes a fresh issue of equity shares amounting to INR 1,700 crore and an offer-for-sale worth INR 1,000 crore by Prestige Estates Projects Ltd, which is the promoter. Out of the total proceeds from the fresh issue, approximately INR 1,121 crore will be utilised to repay or prepay borrowings. This includes debt held by the company as well as by two of its subsidiaries - Sai Chakra Hotels Pvt Ltd and Northland Holding Company Pvt Ltd. The remaining funds will be used for inorganic growth initiatives and general corporate purposes.
Currently, Prestige Hospitality operates seven hotels with 1,445 keys - of which 1,255 rooms are operational and the rest are under renovation. It also has three more hotels under development, expected to add 951 rooms, and nine additional properties in the pipeline, which will contribute another 1,558 rooms. The company?s presence spans key cities including Bengaluru, Chennai, Goa, Delhi-NCR, Mumbai, and Hyderabad.
Prestige Hospitality holds a strong portfolio of premium hotel brands. It partners with leading global chains such as Marriott (operating under brands like St. Regis, JW Marriott, W Hotels, and Sheraton), Hilton (via the Conrad brand), and Banyan Tree (Angsana). According to the draft prospectus, the company controls nearly 9% of all Marriott-managed hotel rooms in India.
The company's financials show strong growth. Its total income rose sharply from INR 191.7 crore in FY22 to INR 795.7 crore in FY24. In the nine months ended December 2024, it recorded revenue of INR 662.7 crore, up from INR 560.3 crore during the same period in the previous year.
The IPO will be managed by JM Financial, CLSA India, Kotak Mahindra Capital, and J.P. Morgan India.
This move comes as the Indian hospitality sector is witnessing renewed interest in capital markets. Recent months have seen several hospitality-related IPO filings, including Brigade Hotel Ventures and Schloss Bangalore (The Leela). The strong rebound in tourism, weddings, and business travel post-COVID has contributed to the rising investor confidence in this segment.
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