Prestige Hospitality Ventures Secures Sebi Approval for Rs 2,700 Crore IPO
Prestige Hospitality Ventures, a leading developer and operator of luxury hospitality assets, has received Sebi approval for a Rs 2,700 crore initial public offering. The IPO will help the company expand its portfolio and strengthen its market position.
Prestige Hospitality VenturesIpoSebiReal EstateHotel ChainReal Estate MumbaiAug 06, 2025
The IPO comprises a fresh issue of shares worth Rs 1,700 crore at Rs 5 each, and an offer for sale (OFS) aggregating up to Rs 1,000 crore by the promoters, Prestige Estates Projects. Prestige Estates Projects, the parent company, has a rich 38-year history in real estate development, making it a trusted name in the industry.
Prestige Hospitality Ventures plans to utilize Rs 1,121.3 crore from the fresh issue for various strategic purposes. This includes the repayment of Rs 397.3 crore in loans availed by the company and its subsidiaries, Sai Chakra Hotels and Northland Holding Company. Additionally, Rs 724.1 crore will be reinvested into these subsidiaries. The remaining funds will be directed towards pursuing inorganic growth through unidentified acquisitions and other strategic initiatives, as well as general corporate purposes.
As of December 2024, Prestige Hospitality Ventures' portfolio included seven operational hotels with 1,445 keys, of which 1,255 keys are currently operational and 190 are under renovation. The company also has three upcoming hotels with 951 keys and nine more planned, which will add 1,558 rooms to its portfolio. This expansion will solidify its position as the largest hotel chain in South India.
The company's portfolio is geographically diverse, spanning major cities such as Bengaluru, Delhi-NCR, Mumbai, Goa, Hyderabad, and Chennai. The properties encompass a range of hospitality offerings, including convention center hotels, business hotels, extended stay service residences, and golf resorts.
Prestige Hospitality Ventures has established operating arrangements with several prestigious brands owned by Marriott International, such as St Regis, Edition Hotels, W Hotels, JW Marriott, Marriott Marquis, Sheraton, Autograph Collection, Tribute Portfolio, Moxy Hotels, Aloft Hotels, and Marriott Executive Apartments. Additionally, it has partnerships with global brands like Conrad by Hilton Worldwide and Angsana Resorts & Spa by the Banyan Group. This strategic alignment has enabled the group to operate the highest number of keys under the Marriott brand, accounting for 9% of its managed portfolio.
The company's financial performance has been robust, with revenue from the sale of hospitality services increasing to Rs 796 crore in FY24 from Rs 636 crore in FY23. This growth underscores the company's strong market position and its potential for further expansion.
With the Sebi approval for its IPO, Prestige Hospitality Ventures is well-positioned to leverage the capital raised to enhance its portfolio, strengthen its brand presence, and continue delivering high-quality hospitality experiences to its guests.
Frequently Asked Questions
What is the value of Prestige Hospitality Ventures' IPO?
The IPO is valued at Rs 2,700 crore.
How much of the IPO is a fresh issue of shares?
The fresh issue of shares is worth Rs 1,700 crore.
What is the purpose of the funds raised from the IPO?
The funds will be used for repaying debts, reinvesting in subsidiaries, pursuing acquisitions, and other strategic initiatives.
How many hotels does Prestige Hospitality Ventures currently operate?
As of December 2024, the company operates seven hotels with 1,445 keys.
Which cities does Prestige Hospitality Ventures operate in?
The company's portfolio is spread across Bengaluru, Delhi-NCR, Mumbai, Goa, Hyderabad, and Chennai.
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