Prestige Hospitality Ventures (PHVL)—the hospitality development arm of real estate bellwether Prestige Estates Projects (PEPL)—has filed its draft papers with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) aggregating up to INR 2,700 crore.
Prestige Hospitality IPO will be a mix of a fresh issue of INR 1,700 crore and an OFS of INR 1,000 crore by its parent PEPL, which currently holds a 100% stake in the hospitality arm. The IPO represents a key liquidity event for PEPL and a strategic evolution for PHVL as it looks to emerge from its parent’s shadow and claim its stake as a standalone public enterprise in India’s booming hospitality sector.
Prestige Hospitality IPO Blueprint
Issue Composition
- Fresh Issue: INR 1,700 crore
- Offer for Sale (by PEPL): INR 1,000 crore
- Total Issue Size: INR 2,700 crore
- Optional Pre-IPO Placement: Up to INR 340 crore (which will reduce fresh issue size if undertaken)
Fund Deployment
Out of the fresh issue proceeds:
- INR 1,121.28 crore is earmarked for repayment and prepayment of borrowings, which includes:
- INR 397.25 crore for company-level loans
- INR 724.03 crore for loans of material subsidiaries—Sai Chakra Hotels and Northland Holding Company
- The remaining amount is allocated towards: (i)Inorganic growth and strategic acquisitions (ii) General corporate purposes
Notably, the entire OFS proceeds will go to the promoter, Prestige Estates, allowing them to partially monetize their hospitality investments.
PHVL’s Business Model: Asset-Rich, Brand-Driven, Experience-Led
PHVL operates on an asset-heavy model, developing and owning hospitality assets in luxury, upper-upscale, and upper-midscale segments. These are then operated under management agreements with global brands, particularly Marriott International and Hilton Worldwide.
PHVL is not a traditional hotel operator. It is, in essence, a real-estate-driven hospitality platform, focused on creating landmark assets in high-demand metro and leisure micro-markets.
Portfolio Snapshot:
| Category | No. of Assets | No. of Keys |
|---|---|---|
| Operating | 7 | 1,445 |
| Ongoing Projects | 3 | 951 |
| Upcoming Projects | 9 | 1,558 |
| Total Key Pipeline | – | 3,954 |
Its flagship properties include:
- JW Marriott Golfshire, Nandi Hills — India’s largest golf resort by keys
- Conrad Bengaluru — the only Conrad in South India
- Tribute Mulberry Shades, Moxy Techcloud, among others
PHVL has also secured India’s first hotel signings for premium Marriott sub-brands such as Edition, Autograph Collection, and Marriott Marquis.
Geographic Footprint & Brand Associations
PHVL’s properties are strategically located in high-growth tourism and business hubs including Bengaluru, Delhi NCR, Mumbai, Chennai, Goa, and Hyderabad—all part of the Top 10 Key Markets as per the Horwath HTL Report.
PHVL’s operator ecosystem is exclusively aligned with internationally renowned brands, such as:
- Marriott (St. Regis, JW Marriott, Sheraton, W Hotels, Tribute, Autograph Collection)
- Hilton (Conrad)
- Banyan Group (Angsana Resorts)
This makes PHVL the largest contributor to Marriott International’s managed key portfolio in India, accounting for 9% of Marriott’s managed pipeline as of January 2025.
Prestige Hospitality IPO – Financial Performance
Despite operating in a capital-intensive space, PHVL has shown strong revenue growth over the last two fiscals, underpinned by brand pull, demand recovery, and pricing power.
Key Financials:
| Metric | FY24 | FY23 | FY22 |
|---|---|---|---|
| Revenue from operations | 992.90 | 1,040.88 | 313.89 |
| EBITDA | 509.32 | 468.46 | 75.58 |
| Net Profit | 161.78 | 156.20 | (86.16) |
| EBITDA Margin (%) | 49.71 | 44.65 | 23.55 |
| Net Debt | 1,450.90 | 1,632.26 | 1,645.62 |
| ROCE (%) | 14.12 | 12.15 | (1.70) |
Operational Metrics: Premium Price Points with Healthy Occupancy
| Metric | 9MFY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|
| Average Room Rate (ARR) | 14,222.91 | 13,449.98 | 11,555.67 | 5,830.22 |
| Occupancy Rate (%) | 59.33 | 59.54 | 57.45 | 39.62 |
| Revenue per Available Room | 8,439.15 | 8,008.51 | 6,639.13 | 2,310.13 |
| F&B Revenue Contribution (%) | 42.30% | 38.06% | 36.44% | 35.98% |
The company’s F&B segment has outpaced room revenue growth, indicating rising demand for MICE (Meetings, Incentives, Conferences & Exhibitions) and banquet services—both major margin contributors.
Sectoral Context & Competitive Landscape
PHVL’s IPO marks another significant addition to India’s expanding list of publicly traded hospitality operators following the listings of:
- Chalet Hotels
- Juniper Hotels
- Indian Hotels (Taj)
- EIH (Oberoi)
- ITC Hotels (de-merged listing expected soon)
Given its premium brand alignment, multi-city footprint, and development pipeline, PHVL is poised to compete with Chalet Hotels, though PHVL’s asset development strategy is more diversified and spread across leisure and convention centers, not just business hotels.
Looking Ahead
Upon listing, PHVL aims to:
- Expand presence in tier-1 leisure and business destinations
- Execute 2,509 expected keys under development
- Focus on integrated hospitality ecosystems, including convention centers, resort residences, and high-margin MICE assets
- Stay capital efficient via asset partnerships, joint ventures, and brand management agreements
The company has signaled a strategic withdrawal from non-core revenue streams like contract development and residential-commercial sub-leasing, realigning focus solely to core hospitality-led developments.
Final Take
Prestige Hospitality IPO is a clear declaration of the sector’s coming-of-age moment in public markets. With institutional pedigree, deep promoter experience, and a compelling luxury-oriented operating model, PHVL stands at the intersection of real estate precision and hospitality passion.
Prestige Hospitality IPO is likely to attract strong institutional interest, especially from investors keen on India’s consumer discretionary and travel resurgence themes. Given India’s rising affluence, global tourism rebound, and brand affinity for premium hotels, PHVL IPO offers a rare, long-duration play on the luxury experiences economy.
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