Prestige Hospitality IPO Launch in 2025
In early 2025, Prestige Hospitality Ventures Ltd, the hospitality arm of Prestige Estates Projects Ltd, submitted its draft papers to SEBI for a proposed ₹2,700 crore Initial Public Offering (IPO). This includes a fresh equity issue worth ₹1,700 crore and offer for sale (OFS) of ₹1,000 crore by the Prestige Group promoters. The company may also consider a pre-IPO placement of up to ₹340 crore, which would reduce the size of the fresh issue accordingly.
IPO Structure & Fund Allocation
Total Issue Size: ₹2,700 crore
- ₹1,700 crore (Fresh Issue)
- ₹1,000 crore (OFS by parent group)
Debt Repayment: ₹1,121.28 crore
- ₹397.25 crore to clear company-level debt
- ₹724.03 crore allocated to subsidiaries Sai Chakra Hotels and Northland Holding
Strategic Growth: Remaining funds will be used for future acquisitions, new developments, and general corporate purposes.
Business Snapshot
Prestige Hospitality Ventures follows an asset-heavy approach, focused on the luxury, upper-upscale, and upper midscale hospitality sectors. The company currently operates 7 hotels with 1,445 rooms, with strong brand alliances through partnerships with global hospitality giants like Marriott and Hilton.
This premium positioning reflects the larger growth strategy of Prestige Estates, which has also launched landmark residential projects like Prestige Southern Star on Begur Road, one of the fastest-growing localities in South Bangalore.
Financials & Growth Momentum
The company has demonstrated strong financial performance, with revenue from hospitality services increasing to ₹795.7 crore in FY24 from ₹636.2 crore in FY23. This gives a compound annual growth rate (CAGR) of 103.73% since FY22. Solid EBITDA margins and improving net profitability indicate a robust financial foundation ahead of the IPO.
Key Highlights
- Marriott Portfolio Leader: Holds the largest share of managed Marriott keys in India (9%)
- Strategic Hotel Locations: Present in top business and leisure destinations including Bengaluru, Hyderabad, Mumbai, Delhi NCR, Goa, and Chennai
- Expansion Pipeline:
- 3 hotels under construction with 951 rooms
- 9 upcoming projects with 1,558 additional keys
For investors interested in Prestige Group Hotels in Bangalore or those familiar with landmark residential offerings like Prestige Southern Star in South Bangalore, this IPO offers a great opportunity to invest in a rapidly growing hospitality brand. With strong operational backing, high-end brand partnerships, and an ambitious expansion plan, Prestige Hospitality Ventures is well-positioned to ride the next wave of travel and tourism growth in India.
