Pride Hotels steps up expansion, plans ₹1,000-crore IPO by December
The expansion has taken Pride Hotels' portfolio to 40 properties, including eight owned hotels and 32 managed properties
Pride Hotels aims to launch its initial public offering (IPO) by December, with a proposed issue size of around ₹1,000 crore, as the hospitality chain intensifies its expansion across leisure, wedding and corporate events, and pilgrimage destinations, CEO Satyen Jain revealed. The company has opened nine hotels in the past year, bringing its portfolio to 40 properties, including eight owned and 32 managed.
Jain anticipates adding another 32 hotels over the next 1.5 to 2 years, expanding the portfolio to approximately 72 properties. The company's focus lies on four segments: deepening its presence in existing markets, targeting large wedding and MICE hotels, entering new leisure destinations, and expanding in pilgrimage. The latter is a promising opportunity due to the high potential for repeat business, as pilgrims often visit religious sites multiple times a year.
Among pilgrimage sites, Puri is of particular interest as it attracts both religious travelers and wedding-related business. To fuel the expansion, Pride Hotels plans to increase the share of owned properties in its portfolio, according to Executive Director Atul Upadhyay. Rising per-capita income, improved air and highway connectivity, and shifting consumer preferences are expected to bolster leisure travel, especially among younger consumers who prioritize experiences over material possessions.
The company is also preparing to tap the capital markets, with the IPO expected to issue shares worth ₹260 crore and allow promoters and their entities to sell up to 3.92 crore shares. The funds will be utilized for capital expenditure, debt repayment, and general corporate purposes. However, rising operating costs pose a challenge, as gas and electricity expenses have increased by 8-9%, prompting the company to invest in wind and solar power, energy-efficient equipment, and efficient chillers to reduce electricity consumption.
Licensing remains the biggest hurdle for the hospitality industry, delaying hotel openings despite completed construction. For now, Pride Hotels remains focused on the domestic market, but could explore international markets with significant Indian traveller traffic in the future.
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