Prestige Hospitality Ventures Ltd (PHVL), the hotel arm of Prestige Estates Projects Ltd, has filed draft papers with SEBI to raise ₹2,700 crore through an initial public offering (IPO). The IPO comprises a fresh issue of ₹1,700 crore and an offer for sale worth ₹1,000 crore by the parent company.

A large portion of the net proceeds from the issue will go towards debt repayment, while the remainder will be used to fund a ₹614.15-crore acquisition pipeline and other strategic initiatives, the company stated in its draft red herring prospectus (DRHP).

The company is in the middle of acquiring a slew of high-profile hospitality assets as part of its push to scale its premium hotel portfolio across key Indian markets. The total consideration for these ongoing acquisitions stands at ₹614.15 crore, of which around ₹540.2 crore is yet to be paid, the company disclosed in its draft IPO papers.

The acquisitions, which include high-end assets such as The St. Regis in Hyderabad, JW Marriott Goa Prestige Golfshire, Autograph Collection Hotel in Goa, and The Edition in Mumbai, are in various stages of completion. While binding agreements have been signed for the land, FSI, and development rights, definitive sale deeds for these assets are yet to be executed and registered in PHVL’s name, the DRHP notes. Of the ₹614.15-crore deal value, around ₹540.2 crore remains to be paid.

PHVL is looking to raise ₹2,700 crore through its IPO, comprising a fresh issue of ₹1,700 crore and an offer for sale of ₹1,000 crore by Prestige Estates. From the net proceeds, the company plans to repay existing debt, while the remainder will be deployed towards acquisitions and other strategic initiatives.

Notably, all ongoing and upcoming assets will be operated by Marriott International, which already manages five of PHVL’s seven operational hotels. Marriott-operated properties contributed over 63 per cent of the company’s hospitality revenue in FY24.

Currently, PHVL’s hospitality footprint remains concentrated in Bengaluru, with properties like Sheraton Grand, JW Marriott Golfshire, and Conrad Bengaluru together accounting for more than 77 per cent of its operating hospitality revenue.

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Published on April 25, 2025