Prestige Hospitality Ventures IPO is a book-built issue with a total size of ₹2,700 crore. The entire issue consists of a fresh issue of shares worth ₹1,700 crores and an offer for sale (OFS) of ₹1,000 crores, aiming to raise funds for the company’s business needs.
JM Financial Limited is acting as the book running lead manager, while Kfin Technologies Limited has been appointed as the registrar to the issue.
Prestige Hospitality Ventures IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funds will be used for Repayment/ prepayment, in full or in part, of certain outstanding borrowings and accrued interest thereon availed by the Company.
- Pursuing inorganic growth through unidentified acquisitions and other strategic initiatives.
- Investment will go into upgrading IT hardware and software.
- Remaining funds will be used for general corporate purposes.
About Prestige Hospitality Ventures Limited
Prestige Hotel Ventures is a hospitality asset owner and developer engaged in the creation and management of luxury, upper upscale, and upper midscale hospitality assets across India. The company caters to both business and leisure travellers and operates as part of the Prestige Group.
Its promoter, Prestige Estates Projects Limited (“PEPL”), has 38 years of experience in real estate development and a market capitalisation of ₹729.66 billion as of December 31, 2024, based on the closing price of its equity shares on the NSE. PEPL’s business operations span four sectors: residential, commercial, hospitality, and retail.
Prestige Hotel Ventures’ portfolio (“Portfolio”) comprises Operating, Ongoing, and Upcoming Hospitality Assets. Operating Hospitality Assets are those completed and functional as of December 31, 2024, including one property under renovation. Ongoing Hospitality Assets are those under construction or development with requisite approvals and land ownership. Upcoming Hospitality Assets are those for which binding arrangements with hotel operators exist, with relevant approvals and land rights in process.
As of December 31, 2024, the Portfolio includes seven Operating Hospitality Assets with 1,445 keys (including 190 keys under renovation), three Ongoing Hospitality Assets with 951 expected keys, and nine Upcoming Hospitality Assets with 1,558 expected keys.
The company has operating arrangements with several global hotel brands, including those managed by Marriott International, Hilton Worldwide, and Banyan Group. Its brand affiliations include St. Regis, JW Marriott, W Hotels, Sheraton, Aloft, Conrad, and Angsana Resorts & Spa, among others.
Industry Outlook
- Hotel demand has grown to approximately 123,000 rooms per day by December 2024, and is expected to reach 208,000 rooms per day by FY 2030, supported by both domestic travel and foreign tourist arrivals.
- Luxury and upper-upscale hotel supply constitutes 16% and 40% of total inventory, while the upper midscale segment makes up 44%, reflecting a balanced distribution across market segments.
- Corporate travel spending in India was USD 10.6 billion in 2023 and is expected to grow to USD 20.8 billion by 2030 at a CAGR of 10%, driving hotel occupancy and average daily rates.
- Domestic tourism is projected to reach 5 billion visits by FY 2030, with foreign tourist arrivals expected to exceed 30 million by 2037, creating significant demand for hotel infrastructure and services.
How To Apply for the Prestige Hospitality Ventures IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Prestige Hospitality Ventures IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
How To Check the Allotment Status of Prestige Hospitality Ventures IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
Contact Details of Prestige Hospitality Ventures Limited
Registered office: Prestige Falcon Tower, No.19, Brunton Road, Bangalore Urban, Karnataka, 560025.
Phone:+91 80 25591080
E-mail:investors.phvl@prestigeconstructions.com
Website: https://www.prestigehospitalityventures.com/
Prestige Hospitality Ventures IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares | Not less than 75% of the Offer |
| NII (HNI) Shares | Not more than 15% of the Offer |
| Retail Shares | Not more than 10% of the Offer |
| Total Shares | (100.00%) |
Key Performance Indicators for Prestige Hospitality Ventures IPO
| KPI | Value |
| ROE (%) | 23.34 |
| RoCE (%) | 14.12 |
| Debt/Equity | 2.11 |
| RoNW (%) | 38.09 |
| EBITDA Margin (%) | 29.81 |
Prestige Hospitality Ventures IPO Prospectus
Prestige Hospitality Ventures IPO Registrar and Lead Managers
Prestige Hospitality Ventures IPO Lead Managers
- JM Financial Limited
Registrar for Prestige Hospitality Ventures IPO
Kfin Technologies Limited
- Contact Number: 04067162222
- Email Address: prestige.ipo@kfintech.com
- Website: https://ipostatus.kfintech.com/
Financial Performance of Prestige Hospitality Ventures Limited
| Particulars | Year ending March 31, 2024 | Year ending March 31, 2023 | Year ending March 31, 2022 |
| Total income (₹ in million) | 1,024,638 | 1,049,259 | 320,864 |
| Revenue from operations (₹ in million) | 992,899 | 1,040,880 | 313,887 |
| F&B revenue (₹ in million) | 302,833 | 231,808 | 68,979 |
| Contribution of F&B (as % of revenue from hospitality services) (%) | 38.06% | 36.44% | 35.98% |
| EBITDA (₹ in million) | 509,324 | 468,464 | 75,576 |
| EBITDA margin (%) | 49.71% | 44.65% | 23.55% |
| Profit / (loss) for the period/year (₹ in million) | 161,784 | 156,197 | (86,157) |
Prestige Hospitality Ventures Limited Peer Comparison
| Company Name | Total Income FY 2024-25 (₹ in million) | EBITDA Margin (%) | PAT FY 2024-25 (₹ in million) |
| Prestige Hospitality Ventures | 102,463.8 | 49.71 | 16,178.4 |
| The Indian Hotels Company Limited | 695,167 | 33.7 | 133,024 |
| EIH Limited | 262,597 | 39.7 | 67,770 |
| ITC Hotels Limited | 306,900 | 36 | 69,800 |
| Chalet Hotels Limited | 143,703.8 | 42.06 | 27,818.1 |
| Ventive Hospitality Limited | 190,737.8 | 45.6 | (6,674.6) |
| Juniper Hotels Limited | 82,630.6 | 38.69 | 2,379.8 |
Strengths and Opportunities of Prestige Hospitality Ventures Limited
- Variety of brands partnered with international hotel operators catering to varied customer needs.
- Over 24 years of experience in developing well-known hospitality assets demonstrating operational expertise and market presence.
- The portfolio includes quality accommodation, curated experiences, and multiple F&B venues.
- Promoter PEPL brings 38 years of real estate experience.
Risks and Threats of Prestige Hospitality Ventures Limited
- Economic downturns could decrease revenue and profitability due to demand drops, impacting growth prospects.
- Many operating expenses are relatively fixed, limiting cost reduction during periods of economic weakness.
- Possible delays or cancellations on new projects and risks that ongoing property developments may not yield expected returns.
- Demand fluctuations beyond company control, especially for room occupancy, could have significant negative effects.
