By Mr. Abhay Ray 
Introduction
Prestige Hospitality Ventures Ltd, a wholly owned subsidiary of Prestige Estates Projects Ltd, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to ₹2,700 crore through an initial public offering (IPO).
The IPO comprises a fresh issue of equity shares of face value of ₹5 each aggregating up to ₹1700 crores and an offer for sale of equity shares of face value of ₹5 each aggregating up to ₹1000 crores. The offer for sale comprises equity shares of face value of ₹5 each by Prestige Estates Projects Limited (Promoter Selling Shareholder), it said.
About Prestige Hotel Ventures
Prestige Hotel Ventures is a hospitality asset owner and developer focused on luxury, upper-upscale, and upper midscale hospitality assets in India for both business and leisure travellers. The company is a part of the Prestige Group, and the promoter, Prestige Estates Projects, has 38 years of experience in real estate development and had a market cap of ₹72,966 crore as of December 31, 2024. The company, in its DRHP, has stated that its revenue from the sale of hospitality services increased to ₹662.681 crore in the nine months ended December 31, 2024, from ₹560.343 crore in the nine months ended December 31, 2023. Further, the revenue from the sale of hospitality services increased to ₹795.695 crore in FY24 from ₹636.169 crore in FY23 and ₹191.715 crore in FY22, reflecting a CAGR of 103.73 per cent between FY22 and FY24.
Expansion of the Hospitality Portfolio
The IPO comes as Prestige Hospitality aims to strengthen its hotel sector position. As of December 31, 2024, Prestige Hotel Ventures Limited had seven hotels in operation with 1,445 rooms (also called keys). Of these, 1,255 rooms are currently being used, while one hotel with 190 rooms is under renovation.
The company is also building three new hotels with a total of 951 rooms over 1.88 million sq. ft. and plans to build nine more hotels with 1,558 rooms across 2.64 million sq. ft. in the future. Between FY22 and the end of 2024, the company grew its number of operating rooms at an average annual rate of 6.89%. Its hotels are in major cities like Bengaluru, Delhi-NCR, Mumbai, Goa, Hyderabad, and Chennai.
The portfolio includes convention centre hotels, business hotels, serviced apartments, and golf resorts. Prestige Hotel Ventures Limited earned ₹662.68 crores from its hospitality services in the nine months ending December 31, 2024, up from ₹560.34 crores during the same period in 2023. For the full financial year, revenue from hospitality services rose to ₹795.70 crores in FY24, compared to ₹636.17 crores in FY23 and ₹191.72 crores in FY22. This shows a strong growth rate, with revenue increasing at an average of 103.73% annually between FY22 and FY24.
IPO details
The IPO consists of a fresh issue of equity shares with a face value of ₹5 each, totaling up to ₹1,700 crores, along with an offer for sale of equity shares with a face value of ₹5 each amounting to ₹1,000 crores.
Prestige Hotel Ventures intends to allocate approximately ₹1,121.276 crores from the net proceeds for the complete or partial repayment or pre-payment of borrowings that total ₹397.248 crores.
The company also plans to utilise funds from the net proceeds to pursue growth through unannounced acquisitions, other strategic ventures, and general corporate purposes. JM Financial Limited, CLSA India Private Limited, J.P. Morgan India Private Limited, and Kotak Mahindra Capital Company Limited are the exclusive Book Running Lead Managers for this issue.
Conclusion
Prestige Hotel Ventures’ planned ₹2,700 crore IPO marks a strategic move to unlock value from its hospitality assets and accelerate expansion. With a mix of fresh issue and offer for sale, the company aims to reduce debt and fuel future growth. Backed by a strong portfolio and a targeted valuation of ₹17,000–₹20,000 crore, the IPO reflects investor confidence in India’s hospitality sector rebound. The offering, expected in the second half of 2025,positions Prestige to scale its operations and strengthen its foothold in premium hospitality.
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