Pride Hotels Sets Sights on IPO Launch
Pride Hotels, a leading hospitality chain, is gearing up to launch its initial public offering (IPO) by March 2026. The company aims to raise funds to renovate its existing properties and reduce debt. According to Sureshchand Premchand Jain, Chairman and Managing Director of Pride Hotels, the IPO will comprise a fresh issue of equity shares worth Rs 260 crore and an offer for sale (OFS) of 3.92 crore equity shares by existing shareholders.
Renovation and Expansion Plans
The company plans to use the funds raised from the IPO to modernize and renovate its existing hotels, with a focus on six out of seven hotels in its owned portfolio. These properties are located in major cities such as New Delhi, Ahmedabad, Kolkata, Bengaluru, Pune, and Chennai. Pride Hotels also intends to deploy the funds over the next 12 to 27 months to undertake renovation, refurbishment, and upgradation of its properties.
Expanding its Footprint
Pride Hotels has expanded its footprint from 19 hotels in 2019 to 34 at present, with another 32 properties in the pipeline. The company's expansion strategy is focused on strengthening its pan-India presence, with an emphasis on business hubs, leisure destinations, and pilgrimage centres. Satyen Jain, Chief Executive Officer of Pride Hotels, said that the company has 21 properties under development, aggregating around 1,500 keys across 19 locations.
Financial Performance
Pride Hotels reported a rise in profit after tax to Rs 83.5 crore in FY25 from Rs 66 crore in the previous fiscal, while revenues increased to Rs 305.62 crore from Rs 270 crore. The company's financial performance is expected to remain strong, driven by the growing demand for hospitality services in India.
Industry Prospects
The Indian hospitality sector is expected to witness significant growth, with an additional 118,000 rooms expected by FY 2030. However, this rapid expansion is expected to intensify competition across segments and geographies. Pride Hotels is well-positioned to capitalize on this growth, with its strong brand presence and expanding portfolio of hotels and resorts.
Key Highlights:
- Pride Hotels aims to launch its IPO by March 2026
- The company plans to raise Rs 260 crore through the IPO
- Funds will be used to renovate existing properties and reduce debt
- Pride Hotels has expanded its footprint to 34 hotels, with another 32 properties in the pipeline
- The company's expansion strategy is focused on business hubs, leisure destinations, and pilgrimage centres
As a trusted news source, we will continue to provide updates on Pride Hotels' IPO plans and expansion strategy. Stay tuned for more news and updates on the Indian hospitality sector.