MUMBAI: Prestige Hospitality Ventures, which develops and operates luxury, upscale and upper midscale hospitality assets, has received Sebi approval for a Rs 2,700 crore initial public offering.
The IPO comprises a fresh issue of shares of Rs 5 each worth Rs 1,700 crore, and an offer for sale aggregating up to Rs 1,000 crore, by the promoters Prestige Estates Projects.
Prestige Hospitality proposes to utilise Rs 1,121.3 crore from the fresh issue towards repayment of Rs 397.3 crore availed by the company and its subsidiaries -- Sai Chakra Hotels and Northland Holding Company -- while Rs 724.1 crore will be invested back into these subsidiaries. The company also proposes to utilise a portion of the fund towards pursuing inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.
Prestige Hospitality Ventures is a part of the Bengaluru-based Prestige Group, promoted by Prestige Estates Projects which has 38 years of experience in real estate development.
As of December 2024, its portfolio included seven hotels with 1,445 keys of which 1,255 keys are operating and the rest 190 under renovation. In addition, it also has three upcoming hotels with 951 keys and nine more planned which will offer 1,558 rooms, making it the largest hotel chain in the South.
The portfolio is spread across Bengaluru, Delhi-NCR, Mumbai, Goa, Hyderabad and Chennai. Apart from rooms, these portfolios include 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, and other global brands like Conrad by Hilton Worldwide as well as Angsana Resorts & Spa by the Banyan Group.
This makes the group having the highest number of keys operating under the Marriott brand, aggregating to 9% of its managed portfolio.
Revenue from sale of hospitality services increased to Rs 796 crore in FY24 from Rs 636 crore in FY23.