Incorporated in 1987, Apeejay Surrendra Park Hotels Limited operates hotel chains. The company is the 8th largest hotel chain amongst hotel chains with asset ownership in India. The company operates hospitality assets under its brands, “THE PARK”, “THE PARK Collection”, “Zone by The Park”, “Zone Connect by The Park”, and “Stop by Zone”.
In addition, the company also operate 80 restaurants, night clubs and bars, offering a wide selection of culinary experiences as of March 31, 2023. For FY 2023, the sale of food and beverages, together with the sale of wine and liquor, contributed around 43.48%, 42.06% and 41.93% of its total income. This indicates the strength of its food, beverage, and entertainment offerings.
Increased individual salaries will likely result in more discretionary expenditure, providing meaningful growth to the hotel business, especially if supply expands in tier 2 and tier 3 areas. With its THE PARK (TPH) hotels in all major cities and several other important markets, as well as the expansion of Zone by The Park (ZTP) and Zone Connect hotels throughout numerous markets at upper-midscale positioning, Apeejay Surrendra Park Hotels Limited (ASPHL) will probably also benefit from this.
Apeejay Surrendra Park Hotels Limited Details
Apeejay Surrendra Park Hotels Limited Date
Retail investors can bid for the Apeejay Surrendra Park Hotels Limited. The issue date has not been announced yet.
Apeejay Surrendra Park Hotels Limited Price Band
Apeejay Surrendra Park Hotels Limited is a fresh issue IPO of ₹650 crore and an Offer for Sale of ₹400 crore shares. It is a book-building issue. The price range has not been announced yet.
Apeejay Surrendra Park Hotels Limited Lot Size
The lot size and minimum investment of Apeejay Surrendra Park Hotels Limited will be announced later.
Apeejay Surrendra Park Hotels Limited Objectives
The objectives of Apeejay Surrendra Park Hotels Limited are listed below:
- Repayment and/or prepayment, in part or in full, of certain outstanding loans taken by the company.
- For general corporate purposes.
Peer Details
As per DRHP, there are 4 listed peers whose business portfolio is comparable to the company:
- Chalet Hotels Limited.
- Lemon Tree Hotels Limited.
- Indian Hotels Company Limited.
- EIH Limited.
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Contact Details of Apeejay Surrendra Park Hotels Limited
Registered office: 17 Park Street, Kolkata – 700 016, West Bengal, India
Phone: +91 33 22499000
E-mail: investorrelations@asphl.in
Company Financials
| Particulars | Year ending on March 31, 2023 ( ₹ Million ) | Year ending on March 31, 2022 ( ₹ Million ) |
|---|---|---|
| Total Income | 5,244.30 | 2,678.30 |
| Profit After Tax (PAT) | 480.62 | 282.02 |
| Total Borrowings | 5,668.80 | 6,226.79 |
| Cash & Cash Equivalents | 165.70 | 85.40 |
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Strengths
3The company maintained an increasing trend of average occupancy to 91.77% in FY 2023, from 67.26% in FY 2021. This showcases decent business resilience as average occupancy is considered a significant catalyst to investigate business health in the hotel industry.
The company possesses the capacity to attract more customers as it operates a diversified pan-India portfolio of owned, leased and managed hotels strategically located across metros and emerging cities.
The company will continue to focus on the development of existing land banks and strategic allocation of capital as part of its strategy to grow through an optimum mix of owned, leased/licensed hotels and asset-light contracts.
Risks
3The company derives ~75% of its total revenue from its top 5 hotels. Any adverse change in those localities could hamper the business growth.
The company’s business could be affected by the variations in seasonal and cyclical activities impacting its operating results and cash flows.
The company generates a significant portion of its room revenue from corporate accounts and leisure customers. Any changes in travellers’ preferences due to increased use of telepresence equipment, cost of travel, spending habits, and other factors may affect the demand for hotel rooms.
