Prestige Hotel Ventures Limited, a hospitality asset owner and developer focused on luxury, upper upscale and upper midscale hospitality assets in India for both business and leisure travellers, has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).
The IPO comprises of a fresh issue of equity shares of face value of ₹5 each aggregating up to ₹ 1700 Crores and an offer for sale of equity shares of face value of ₹ 5 each aggregating up to ₹ 1000 Crores. The offer for sale comprises of equity shares of face value of ₹ 5 each by Prestige Estates Projects Limited (Promoter Selling Shareholder).
Prestige Hotel Ventures Limited proposes to utilise from the Net Proceeds an estimated amount of ₹ 1121.276 Crores towards full or partial repayment or pre-payment of borrowings amounting to Rs 397.248 Crores availed by the Company and Material Subsidiaries, namely, Sai Chakra Hotels Private Limited and Northland Holding Company Private Limited, through investment in such subsidiaries amounting to Rs 724.028 Crores. The company also proposes to utilise fund from the Net Proceeds towards pursuing inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes
Prestige Hotel Ventures Limited is a hospitality asset owner and developer focused on luxury, upper upscale and upper midscale hospitality assets in India for both business and leisure travellers. The company is a part of the Prestige Group and Promoter, Prestige Estates Projects Limited has 38 years of experience in real estate development and has a market cap of ₹729.66 billion as of December 31, 2024.
As of December 31, 2024, the portfolio includes seven operating hospitality assets with 1,445 keys which include 1,255 operating keys and one hospitality asset which is currently under renovation with 190 keys. In addition, the portfolio includes three ongoing hospitality assets with 951 expected keys covering 1.88 million sq. ft. developable area and nine upcoming hospitality assets with 1,558 expected keys 2.64 million sq. ft. developable area. As of December 31, 2024, the portfolio (comprising operating, ongoing and upcoming hospitality assets) has the largest number of keys among the major private hotel assets owners or developers in South India.
The company increased the operating keys at a CAGR of 6.89% between FY22 and the nine months ended December 31, 2024. The portfolio is spread across major metro cities and urban centres in India such as Bengaluru in Karnataka, Delhi-NCR, Mumbai in Maharashtra, Goa, Hyderabad in Telangana and Chennai in Tamil Nadu. The company has a track record of hospitality assets in strategic locations in India, i.e., close to airports, office locations and tourism hotspots. The company aims to identify and address market gaps, thereby providing offerings that enhance the portfolio diversification. The Portfolio includes convention centre hotels, business hotels, extended stay service residences and golf resorts.
The company has operating arrangements with various brands owned by Marriott International, including St. Regis, Edition Hotels, Resorts & Suites, W Hotels, JW Marriott Hotels & Suites, Marriott Marquis Hotels, Marriott Hotels, Sheraton Hotels & Resorts, Autograph Collection Hotels, Tribute Portfolio Hotels & Resorts, Moxy Hotels, Aloft Hotels and Marriott Executive Apartments (under renovation), and other global brands namely, Conrad by Hilton Worldwide as well as Angsana Resorts & Spa by Banyan Group. The company has the highest number of keys under operating and pipeline hospitality assets in the Marriott managed portfolio, aggregating to 9% of the Marriott managed portfolio.
The revenue from sale of hospitality services increased to ₹662.681 crores in the nine months ended December 31, 2024 from ₹560.343 crores in the nine months ended December 31, 2023. Further, the revenue from sale of hospitality services increased to ₹795.695 crores in FY24 from ₹636.169 crores in FY23 and ₹191.715 crores in FY22, reflecting a CAGR of 103.73% between FY22 and FY24.
JM Financial Limited, CLSA India Private Limited, J.P. Morgan India Private Limited and Kotak Mahindra Capital Company Limited are the sole Book Running Lead Managers to the issue.
