Prestige Hospitality Ventures gets SEBI’s approval for IPO

Prestige Hospitality Ventures, a subsidiary of realty firm Prestige Estates Projects, has received regulatory approval from SEBI to raise Rs 2,700 crore through an initial public offering (IPO).

The IPO will consist of a fresh issue of shares worth ₹1,700 crore and an offer-for-sale (OFS) of ₹1,000 crore by the parent company. Proceeds from the fresh issue are expected to be used for debt repayment, future expansion, and other strategic growth initiatives.

Prestige Hospitality Ventures focuses on luxury, upper-upscale, and upper-mid scale hotels across key cities such as Bengaluru, Delhi-NCR, Mumbai, Goa, Hyderabad, and Chennai.

As of Dec 2024, it operates seven hotels with 1,445 keys, has three projects under development (951 keys), and nine more in the pipeline (1,558 keys), making it South India’s largest private hospitality asset owner by number of keys.

The company partners with global brands like Marriott (JW Marriott, St. Regis, Sheraton), Conrad by Hilton, and Angsana Resorts, contributing 9% to Marriott’s India portfolio. Its revenue grew at a CAGR of 103.7% from FY22 to FY24, reaching ₹795.7 crore in FY24.

JM Financial, CLSA, J.P. Morgan, and Kotak Mahindra Capital are the book-running lead managers to the issue.