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 a fresh issue of equity shares of the face value of Rs 5, each aggregating up to Rs 1700 Crores, and an offer for the sale of equity shares of the face value of Rs 5, each aggregating up to Rs 1000 Crores. The offer for sale comprises equity shares of face value of Rs 5 each by Prestige Estates Projects Limited (Promoter Selling Shareholder).
Prestige Hotel Ventures Limited proposes to use the Net Proceeds, estimated at Rs 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 using Net Proceeds funds to pursue inorganic growth through unidentified acquisitions, 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 business and leisure travellers. The company is part of the Prestige Group and Promoter; Prestige Estates Projects Limited has 38 years of experience in real estate development and a market cap of Rs 729.66 billion as of 31 December 2024.
As of 31st December 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 a 1.88 million sq. ft. developable area and nine upcoming hospitality assets with 1,558 expected keys in a 2.64 million sq. ft. developable area. As of 31st December, 2024, the portfolio (comprising operating, ongoing and upcoming hospitality assets) has the largest number of keys among the major private hotel asset 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 31st December, 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, providing offerings that enhance 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 key under-operating and pipeline hospitality assets in the Marriott managed portfolio, aggregating to 9% of the Marriott managed portfolio.
The revenue from the sale of hospitality services increased to Rs 662.681 crores in the nine months ended 31st December, 2024, from Rs 560.343 crores in the nine months ended 31st December, 2023. Further, the revenue from the sale of hospitality services increased to Rs 795.695 crores in FY24 from Rs 636.169 crores in FY23 and Rs 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 for the issue.
