Prestige Hotel Ventures has filed its Draft Red Herring Prospectus with the market regulator, Securities and Exchange Board of India, to raise Rs 2,700 crore via its initial public offering (IPO).
The IPO comprises a fresh issue of equity shares of face value of Rs 5 each, aggregating up to Rs 1,700 crore and an offer for sale of equity shares of face value of Rs 5 each, aggregating up to Rs 1,000 crore. 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 utilise from the net proceeds an estimated amount of Rs 1,121.276 crore towards full or partial repayment or pre-payment of borrowings amounting to Rs 397.248 crore 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 crore.
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.
The company also proposes to utilise the money raised via the IPO towards pursuing inorganic growth through unidentified acquisitions and other strategic initiatives. A part of the proceeds will be used for general corporate purposes.
Prestige Hotel Ventures 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 IPO-bound company is a part of the Prestige Group, and the promoter, Prestige Estates Projects Limited, has 38 years of experience in real estate development, commanding a market cap of Rs 729.66 billion as of December 31, 2024.
As of December 31, 2024, Prestige Hotel Ventures Limited’s portfolio included seven operating hospitality assets with 1,445 keys — 1,255 operating keys and one hospitality asset which is currently under renovation with 190 keys.
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.
Prestige Hotel Ventures 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 its portfolio, which currently features convention centre hotels, business hotels, extended stay service residences and golf resorts.
It 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.
Prestige Hotel Ventures 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 the sale of hospitality services increased to Rs 662.681 crore in the nine months ended December 31, 2024, from Rs 560.343 crore in the nine months ended December 31, 2023. Further, the revenue from the sale of hospitality services grew to Rs 795.695 crore in FY24 from Rs 636.169 crore in FY23 and Rs 191.715 crore in FY22, reflecting a CAGR of 103.73% between FY22 and FY24.
The IPO comprises a fresh issue of equity shares of face value of Rs 5 each, aggregating up to Rs 1,700 crore and an offer for sale of equity shares of face value of Rs 5 each, aggregating up to Rs 1,000 crore. 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 utilise from the net proceeds an estimated amount of Rs 1,121.276 crore towards full or partial repayment or pre-payment of borrowings amounting to Rs 397.248 crore 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 crore.
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.
The company also proposes to utilise the money raised via the IPO towards pursuing inorganic growth through unidentified acquisitions and other strategic initiatives. A part of the proceeds will be used for general corporate purposes.
Prestige Hotel Ventures 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 IPO-bound company is a part of the Prestige Group, and the promoter, Prestige Estates Projects Limited, has 38 years of experience in real estate development, commanding a market cap of Rs 729.66 billion as of December 31, 2024.
As of December 31, 2024, Prestige Hotel Ventures Limited’s portfolio included seven operating hospitality assets with 1,445 keys — 1,255 operating keys and one hospitality asset which is currently under renovation with 190 keys.
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.
Prestige Hotel Ventures 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 its portfolio, which currently features convention centre hotels, business hotels, extended stay service residences and golf resorts.
It 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.
Prestige Hotel Ventures 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 the sale of hospitality services increased to Rs 662.681 crore in the nine months ended December 31, 2024, from Rs 560.343 crore in the nine months ended December 31, 2023. Further, the revenue from the sale of hospitality services grew to Rs 795.695 crore in FY24 from Rs 636.169 crore in FY23 and Rs 191.715 crore in FY22, reflecting a CAGR of 103.73% between FY22 and FY24.
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