IPO Details
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Schedule of Prestige Hospitality Ventures Ltd
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About Prestige Hospitality Ventures Ltd IPO
The IPO of Prestige Hospitality Ventures Ltd comprises fresh issue and an offer for sale. While the fresh issue aggregates up to ₹1700 crores, the offer for sale aggregates up to ₹1000 crores. It’s a 100% book-built issue.
Objectives of Prestige Hospitality Ventures Ltd IPO
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Repayment/ prepayment, in full or in part, of certain outstanding borrowings and accrued interest thereon availed by the company and its material subsidiaries namely Sai Chakra Hotels Private Ltd and Northland Holding Company Private Ltd
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Pursuing inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes
Prestige Hospitality Ventures Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to ₹1700 crores |
Offer for Sale | Up to ₹1000 crores |
Basic EPS in ₹ in FY 24 | 6.24 |
Prestige Hospitality Ltd IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not less than 75% of the offer |
Non-institutional Bidders | Not more than 15% of the offer |
Retail Individual Bidders | Not more than 10% of the offer |
Industry Outlook
Hotels in India are limited, with only 283 chain affiliated rooms per million population, which shows that there is scope for development of more hotels given the growing population. Demand growth for chain affiliated hotels in India across all segments has been significantly higher compared to inventory growth, with the trend expected to continue between FY 2025 - FY 2030 at 9.6% CAGR. This will likely cause increased hotel occupancy and potentially support strong ADR levels.
Company Information
Prestige Hospitality Ventures Ltd 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.
It’s a part of the Prestige Group and its Promoter, Prestige Estates Projects Limited (PEPL) has 38 years of experience in real estate development and has a market cap of ₹729.66 billion as of December 31, 2024. PEPL has a well-diversified portfolio spread across four business sectors, namely residential, commercial, hospitality and retail.
Prestige Hospitality Ventures Ltd Strengths
Portfolio of luxury, upper upscale and upper midscale hospitality assets in key business and leisure locations
The company has a diverse portfolio of brands with international hotel operators that cater to different requirements of both business and leisure travellers. As of December 31, 2024, its portfolio included 7 operating hospitality assets (including one hospitality asset which is currently under renovation) with 1,445 keys, including 1,255 operating keys and 190 keys of the hospitality asset under renovation.
Demonstrated execution track record and active asset management capabilities
Prestige Hospitality Ventures Ltd has demonstrated a track record over the last 24 years in developing well-known hospitality assets. It has a skilled development team and development capabilities commencing from its first upper upscale hotel in Bengaluru, Angsana Resort in Fiscal 2001 with 79 keys up to 1,445 keys of operating hospitality assets, 951 expected keys of ongoing hospitality assets and 1,558 expected keys for upcoming hospitality assets as of December 31, 2024.
Longstanding and established relationship with leading global hotel operators
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 such as Conrad by Hilton Worldwide as well as Angsana Resorts & Spa by Banyan Group.
Risks of Prestige Hospitality Ventures Ltd IPO
- Extensive reliance on Marriott International
Prestige Hospitality relies extensively on Marriott International for its hospitality assets operations. Five out of seven of its operating hospitality assets are operated by Marriott International. Further, all three ongoing hospitality assets and all nine upcoming hospitality assets are to be operated by Marriott International.
If agreements entered into with Marriott International are not novated or assigned in its name, terminated, not renewed or modified in such a way as to be detrimental to it, or if there is any negative development with respect to Marriott International and its associate brands, its business, cash flows, results of operations and financial condition may be materially adversely affected.
- Dependence on hospitality industry
The company’s business operations and total income are heavily dependent on the hospitality industry in India. Adverse developments in the hospitality industry such as economic downturns, changes in consumer preferences, increased competition, or regulatory changes may adversely affect its business, cash flows, results of operations, financial condition and prospects.
- Geographical concentration
All of the company’s operating hospitality assets are located in Bengaluru, Karnataka. Any adverse developments affecting Bengaluru or its inability to complete its ongoing and upcoming projects in new markets could have an adverse effect on its business, cash flows, results of operations, financial condition and prospects.
All Financial Information about Prestige Hospitality Ventures
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Company Name | Revenue from Operations (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | NAV Per Equity Share (in ₹) |
|---|---|---|---|---|
Prestige Hospitality Ventures Ltd | 992.899 | 6.24 | 21.35 | 29.21 |
Chalet Hotels Ltd | 1417.252 | 13.54 | 15.03 | 90.18 |
Ventive Hospitality Ltd | 1842.066 | 5.24 | (1.82) | 175.87 |
Juniper Hotels Ltd | 817.663 | 1.46 | 0.90 | 162.59 |
The Indian Hotels Company Ltd | 6768.750 | 8.86 | 13.13 | 71.26 |
EIH Ltd | 2511.271 | 10.22 | 16.58 | 65.34 |
ITC Hotels Ltd | 3034.000 | NA | NA | NA |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Managers
- IPO Registrar: KFin Technologies Ltd
- Book Running Lead Managers: JM Financial Ltd, CLSA India Private Ltd, J.P. Morgan India Private Ltd, Kotak Mahindra Capital Company Ltd
Business Model
A hospitality asset owner and developer, Prestige Hospitality Ventures Ltd portfolio as of December 31, 2024 includes seven operating hospitality assets with 1,445 keys, including one hospitality asset which is currently under renovation with 190 keys. In addition, its portfolio includes three ongoing hospitality assets with 951 expected keys and nine upcoming hospitality assets with 1,558 expected keys.
The hospitality assets in its portfolio have a comprehensive ecosystem that caters to evolving guest preferences by providing quality accommodation, curated experiences and F&B venues offering dining experiences spanning multiple cuisines, wellness offerings and several other amenities. Further, its hospitality assets are equipped with facilities designed to host a range of activities such as corporate meetings and conferences, weddings and social gatherings.
Company Growth Trajectory
The total income of Prestige Hospitality Ventures Ltd grew from ₹320.864 crores in FY 22 to ₹1024.638 crores in FY 24. Its EBITDA margin grew from 23.55% in FY 22 to 49.71% in FY 24.
The company has increased its portfolio to 1,445 keys of operating hospitality assets, 951 expected keys of ongoing hospitality assets and 1,558 expected keys of upcoming hospitality assets as of December 31, 2024 from 1,203 keys of operating hospitality assets, 778 expected keys of ongoing hospitality assets and 556 expected keys of upcoming hospitality assets as of March 31, 2022.
Diversified revenue streams and robust pipeline of hospitality assets in high-demand markets have aided to the company’s growth over the years.
Market Position
A part of the Prestige Group and its promoter Prestige Estates Projects Limited (“PEPL”) which has 38 years of experience in real estate development, Prestige Hospitality Ventures Ltd as of December 31, 2024, 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 company’s hotels have garnered numerous awards and accolades, reflecting its commitment to excellence. For instance, JW Marriott Golfshire won Asia’s best golf hotel in 2024 at the 11th Annual World Golf Awards 2024 as well as the Best Luxury Lifestyle Resort Globally at the Luxe Global Awards in 2024.
Prestige Hospitality Ventures Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 1024.638 | 1049.259 | 320.864 |
Profit/(Loss) Before tax (in ₹ crores) | 238.896 | 201.871 | (104.176) |
Basic EPS in ₹ | 6.24 | 5.90 | (3.44) |
Prestige Hospitality Ventures Ltd Balance Sheet
| Parameters | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit/(Loss) Before tax (in ₹ crores) | 238.896 | 201.871 | (104.176) |
Net Cash Generated from Operating Activities (in ₹ crores) | 835.641 | 346.753 | 57.464 |
Net Cash from / (Used in) Investing Activities (in ₹ crores) | (430.265) | (266.393) | (650.755) |
Net Cash from / (Used in) Financing Activities (in ₹ crores) | (330.094) | (14.443) | 504.065 |
Cash and Cash Equivalents at the End of the Year (in ₹ crores) | 203.738 | 128.456 | 62.539 |
How to Check Allotment Status of Prestige Hospitality Ventures Ltd IPO?
1. Visit the Registrar’s Website
- Visit the official website of KFin Technologies Ltd
- Click on ‘IPO Allotment Status’ under ‘Investors’ from ‘Products’
- Click on any one of the links shown
- Choose the IPO name from dropdown
- Enter your application number, Demat account number or PAN number
- Enter captcha and click on ‘Submit’ to know the status
2. Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
3. Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Prestige Hospitality Ventures Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Company name from dropdown
- Application number
- PAN
Then click 'Submit' to know the allotment status.
How to Apply for Prestige Hospitality Ventures Ltd IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Prestige Hospitality Ventures Ltd IPO FAQs
What is the Prestige Hospitality Ventures Ltd IPO?
The IPO of Prestige Hospitality Ventures Ltd comprises a fresh issue and an offer for sale. The total IPO size aggregates up to ₹2700 crores.
When will the IPO of Prestige Hospitality Ventures Ltd go live?
The exact dates of the IPO are yet to be announced.
From where can I read more about the IPO of Prestige Hospitality Ventures Ltd?
You can read more about the IPO of Prestige Hospitality Ventures Ltd from the company’s draft red herring prospectus here.
