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Prestige Hospitality
TEMPPREST
★★★☆☆3/5
🔗 Official WebsitePrice Band: —
Issue Size: 2700
About the Company
What does this company do?
Prestige Hospitality Ventures Limited is a hospitality company promoted by Prestige Estates Projects Limited. The company owns and operates a portfolio of luxury and upscale hotels primarily in Bengaluru, Karnataka, with brands managed by Marriott International (including Sheraton Grand, JW Marriott Golfshire, Conrad B…
IPO Details
Issue parameters, key dates and structure.
Total Issue Size
2700
Fresh Issue
1700
Proceeds go to company
OFS
1000
Proceeds to selling shareholders
Reservation Structure
Products & Brands
Key offerings and brand portfolio of the company.
Operating Hospitality Assets — Bengaluru Portfolio: Portfolio of 7 operating luxury/upscale hotels in Bengaluru including Sheraton Grand, JW Marriott Golfshire, Conrad Bengaluru, Angsana Oasis Spa and Resort, and others primarily managed by Marriott International.
Financial Performance
P&L, Balance Sheet and Cash Flow — all figures in ₹ Crores.
| Particulars (₹ Cr) | H1 FY25 (9M ended Dec 2024) | H1 FY24 (9M ended Dec 2023) | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|
| Revenue from Operations | 995.605 | 667.590 | 992.899 | 1040.880 | 313.887 |
| Other Income | 17.325 | 21.586 | 31.739 | 8.379 | 6.977 |
| EBITDA | 309.512 | 316.913 | 508.410 | 468.496 | 75.421 |
| EBITDA Margin | 31.1% | 47.5% | 51.2% | 45.0% | 24.0% |
| Depreciation & Amortisation | 126.344 | 124.728 | 166.581 | 170.912 | 111.872 |
| EBIT | 183.168 | 192.185 | 341.829 | 297.584 | -36.451 |
| Finance Costs (Interest) | 80.666 | 77.355 | 102.933 | 95.513 | 67.725 |
| PBT (Profit Before Tax) | 102.502 | 114.830 | 238.896 | 201.871 | -104.176 |
| Tax | 34.711 | 32.344 | 77.112 | 45.674 | -18.019 |
| PAT (Net Profit) | 67.791 | 82.486 | 161.784 | 156.197 | -86.157 |
| PAT Margin | 6.8% | 12.4% | 16.3% | 15.0% | -27.4% |
| EPS — Basic (₹) | 2.59 | 3.16 | 6.24 | 5.90 | -3.44 |
| EPS — Diluted (₹) | 2.53 | 3.08 | 6.08 | 5.75 | -3.44 |
All figures in ₹ Crores (INR). Data sourced from DRHP/RHP.
Key Financial Ratios
Valuation and profitability metrics at the IPO price.
EPS — Basic (₹)
—
H1 FY25 (9M ended Dec 2024)
EPS — Diluted (₹)
—
H1 FY25 (9M ended Dec 2024)
P/E Ratio
—
At upper band
RoNW (%)
—
H1 FY25 (9M ended Dec 2024)
NAV per Share (₹)
—
Pre-issue
Peer Comparison
Listed peers in the same industry — compare valuation and scale.
| Company | Exchange | Market Cap | Revenue (₹ Cr) | PAT (₹ Cr) | P/E | ROE |
|---|---|---|---|---|---|---|
| — | — | — | — | — | — | — |
* Peer data extracted from DRHP. All figures in ₹ Crores unless stated. P/E based on latest available earnings.
Objectives of the Issue
How the company intends to use the IPO proceeds.
⚠
{"amount":"","purpose":"Repayment/prepayment of borrowings of the Company and/or its subsidiaries"}
1
{"amount":"","purpose":"Acquisition of hospitality assets (Ongoing and Upcoming Acquisition Transactions)"}
2
{"amount":"","purpose":"General corporate purposes"}
SWOT Analysis
Internal strengths & weaknesses; external opportunities & threats.
💪Strengths
Strong promoter backing from Prestige Estates Projects Limited
Partnerships with Marriott International under premium hotel brands
Established operating portfolio in Bengaluru with improving profitability
ROFO/ROFP pipeline from promoter ensuring future asset access
⚠️Weaknesses
Geographic concentration — all operating assets in Bengaluru
High leverage with Net Debt/Equity of 2.87x
Revenue concentration in three hotels contributing ~79% of hospitality revenue
Company did not meet SEBI Reg 6(1)(b) operating profit criteria
🚀Opportunities
India's hospitality sector growth driven by rising domestic and international tourism
Expansion into new markets including Hyderabad, Goa and other cities
Large pipeline of ongoing and upcoming hospitality assets under Marriott brands
Growing MICE and business travel segments benefiting premium hotels
🔥Threats
Dependence on a single hotel operator (Marriott International) creates concentration risk
Macroeconomic slowdowns or travel disruptions could impact occupancy and RevPAR
Competition from other listed and unlisted hospitality players
Execution risk in completing acquisition transactions and novating operator agreements
Competitive Strengths
Key advantages highlighted in the DRHP.
✓
Strong parentage and backing from Prestige Estates Projects Limited, one of India's leading real estate developers, providing brand recognition, asset pipeline and financial support
✓
Strategic partnerships with globally recognized hotel operators, primarily Marriott International, operating 5 out of 7 operating hospitality assets under premium brands
✓
Established portfolio of operating hospitality assets in Bengaluru generating consistent revenue from hospitality services
✓
Right of First Offer and Right of First Purchase (ROFO/ROFP) deed with Promoter providing visibility on future asset acquisition pipeline
✓
Significant expansion pipeline with ongoing and upcoming hospitality assets across multiple cities diversifying geographic concentration
✓
Experienced management team with deep expertise in hospitality operations and real estate development
Promoters & Shareholding
Pre & post-IPO shareholding pattern. Click a promoter card to learn more.
Promoters
Shareholding Pattern
PrePost
Key Risks
Material risk factors to consider before applying.
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Heavy reliance on Marriott International for hotel operations (69.12% of hospitality revenue for H1 FY25); termination or adverse modification of agreements could materially harm business
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All operating hospitality assets concentrated in Bengaluru, Karnataka, creating significant geographic concentration risk
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Three hotels (Sheraton Grand, JW Marriott Golfshire, Conrad Bengaluru) contribute ~79.30% of hospitality revenue, creating asset concentration risk
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Significant portion of total income derived from non-hospitality operations not aligned with future strategy
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Several acquisition transactions have pending formalities including novation of hotel operator agreements and unexecuted sale deeds
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High debt levels with total borrowings of ₹20,370.81 million and Net Debt to Total Equity of 2.87x as at December 31, 2024
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Company does not fulfil operating profit requirements under Regulation 6(1)(b) of SEBI ICDR Regulations, indicating historical profitability concerns
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Conflicts of interest with Promoter and Promoter Group entities sharing common business objectives
◆ Neutral
Should You Apply?
Prestige Hospitality Ventures Limited is a Bengaluru-based hospitality company promoted by Prestige Estates Projects Limited, owning and operating a portfolio of 7 luxury hotels primarily under Marriott International brands, with a significant expansion pipeline of ongoing and upcoming assets across India. Financially, the company has demonstrated revenue recovery post-COVID (FY2024 revenue of ₹992.9 million, PAT of ₹161.8 million, RoNW of 21.35%) but carries high leverage (Net Debt/Equity of 2.87x as at Dec 2024) and has geographic concentration risk with all operating assets in Bengaluru. The IPO at a total size of ₹2,700 crore (Fresh Issue ₹1,700 crore + OFS ₹1,000 crore) does not have a disclosed price band at the DRHP stage, making P/E-based valuation assessment premature. Investors should monitor the final pricing for valuation comfort given the high debt, geographic concentration, and the company's ineligibility under SEBI Reg 6(1)(b) operating profit norms, while acknowledging the strong promoter brand, Marriott partnership, and India's positive hospitality sector outlook.
⚠️ This is not investment advice. CheckIPO provides information for educational purposes only. Always consult a SEBI-registered financial advisor before investing.
Lead Managers & Registrar
Institutions managing the issue and handling allotment.
Book Running Lead Managers (4)
JM Financial
CLSA
J.P. Morgan
Kotak Mahindra Capital
Registrar to the Issue
📋
KFin Technologies Limited
Registrar to the Issue
Company Details
Registered information and contact details.
Company Name
Prestige Hospitality Ventures Limited
CIN
U45500KA2017PLC109059
Registered Office
Prestige Falcon Tower, No.19, Brunton Road, Bengaluru – 560 025, Karnataka, India
Contact Person
Lingraj Patra
Phone
+91 80 25591080