Business Profile of Prestige Hospitality Ventures Limited
Prestige Hospitality Ventures primary business includes the construction, leasing, and management of hospitality assets. The company was established on December 29, 2017, and focused on upper upscale, luxury, and upper-midscale properties in India. Prestige Hospitality Venture Ltd. is a subsidiary of Prestige Estates Projects Ltd. (PEPL) under “Prestige Group” who have 38 years of experience and ₨729.66 billion market cap. as of December 31, 2024. The sector in which PEPL operates includes retail, hospitality, commercial & residential, and company hotels are located mainly in Delhi-NCR, Bengaluru, Chennai, Mumbai, Goa, and Hyderabad. The registered office of the company is located in Bengaluru with 1,638 permanent employees as of date December 31, 2024.
Objective of Prestige Hospitality Ventures IPO
As per the draft red hearing prospects, the IPO issue consists fresh issue and offer for sale. The fresh issue consists of XXXX shares at the face value of ₨ 5.00 each aggregating up to ₹17,000.00 millions and OFS consists XXXX shares at face value of ₨ 5.00 each aggregating up to ₨ 10,000.00 millions. There are fresh shares issues and OFS by company and main objective of company is repayment of debt, achieve inorganic growth through unidentified acquisitions and general corporate expenses.
Details of Prestige Hospitality Ventures IPO
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹5.00 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to XXXX Equity Shares |
| Aggregating up to ₨ 27,000.00 million | |
| Fresh Issue | Up to XXXX Equity Shares |
| Aggregating up to ₨ 17,000.00 million | |
| Offer For Sale | Up to XXXX Equity Shares |
| Aggregating up to ₨ 10,000.00 million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Prestige Hospitality Ventures IPO: Issue Price & Size
The issue price of PRESTIGE HOSPITALITY VENTURES LIMITED hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has fresh issue and OFS aggregating up to ₹ 2,700 cr at the price of ₨XXXX.
Launch Date of Prestige Hospitality Ventures IPO
The IPO opening date of PRESTIGE HOSPITALITY VENTURES LIMITED hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Financial Statements of Prestige Hospitality Ventures Limited
| Particulars (₨ Million) | Ended 31 Dec 2024 |
Ended 31 Dec 2023 |
FY 31 Mar 2024 | FY 31 Mar 2023 | FY 31 Mar 2022 |
| Income | |||||
| Revenue from operations | 9,956.05 | 6,675.90 | 9,928.99 | 10,408.80 | 3,138.87 |
| Other income | 173.25 | 215.86 | 317.39 | 83.79 | 69.77 |
| Total Income | 10,129.30 | 6,891.76 | 10,246.38 | 10,492.59 | 3,208.64 |
| Expenses | |||||
| Increase/decrease in inventory | 1,230.52 | (137.89) | (246.84) | 509.78 | (518.91) |
| Food, beverages and other supplies | 863.38 | 729.64 | 996.61 | 891.04 | 296.36 |
| Contractor cost | 1,370.46 | 186.76 | 308.07 | 1,011.88 | 1,109.90 |
| Employee benefits expense | 1,132.86 | 1,020.88 | 1,410.62 | 1,142.28 | 611.73 |
| Finance costs | 806.66 | 773.55 | 1,029.33 | 955.13 | 677.25 |
| Depreciation and amortization expense | 1,263.44 | 1,247.28 | 1,665.81 | 1,709.12 | 1,118.72 |
| Other expenses | 2,431.29 | 1,922.24 | 2,684.68 | 2,252.97 | 953.80 |
| Total Expenses | 9,098.61 | 5,742.46 | 7,848.28 | 8,472.20 | 4,248.85 |
| Restated Profit/(Loss) before exceptional items | 1,030.69 | 1,149.30 | 2,398.10 | 2,020.39 | (1,040.21) |
| Exceptional Items | - | - | - | - | - |
| Restated Profit/(Loss) before share of loss from joint ventures | 1,030.69 | 1,149.30 | 2,398.10 | 2,020.39 | (1,040.21) |
| Share of (loss) from joint ventures | (5.67) | (1.00) | (9.14) | (1.68) | (1.55) |
| Restated Profit/(Loss) before tax | 1,025.02 | 1,148.30 | 2,388.96 | 2,018.71 | (1,041.76) |
| Tax expense : | |||||
| Current tax | 39.81 | 29.21 | 79.97 | 48.04 | 5.38 |
| Deferred tax | 307.30 | 294.23 | 691.15 | 408.70 | (185.57) |
| Total Tax expense | 347.11 | 323.44 | 771.12 | 456.74 | (180.19) |
| Restated Profit/(Loss) for the period | 677.91 | 824.86 | 1,617.84 | 1,561.97 | (861.57) |
Key financial ratios of Prestige Hospitality Ventures Limited
| Particulars | Ended Dec 31 , 2024 |
Ended Dec 31 , 2023 |
Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
| Financial Metrics : | |||||
| Total income (₨ in million) | 10,129.30 | 6,891.76 | 10,246.38 | 10,492.59 | 3,208.64 |
| Growth of Total income | 46.98% | NA | (2.35 %) | 227.01% | NA |
| Revenue from operations (₨ in million) | 9,956.05 | 6,675.90 | 9,928.99 | 10,408.80 | 3,138.87 |
| Growth of Revenue from operations | 49.13% | NA | (4.61%) | 231.61% | NA |
| EBITDA (₨ in million) | 3,100.79 | 3,170.13 | 5,093.24 | 4,684.64 | 755.76 |
| EBITDA margin | 30.61% | 46.00% | 49.71% | 44.65% | 23.55 % |
| Profit/(loss) margin | 6.69% | 11.97% | 15.79% | 14.89% | -26.85% |
| Net debt to Total Equity | 2.87 | 2.57 | 2.11 | 2.54 | 3.93 |
| Return on Capital Employed | 6.73% | 7.99% | 14.12% | 12.15% | (1.70 %) |
| Return on Equity | 10.22% | 13.03% | 24.34% | 29.43% | NA |
| Operational Metrics : | |||||
| Operating Hospitality Assets | 7 | 7 | 7 | 5 | 5 |
| Average room rate (ARR) (₨ in million) | 14,222.91 | 13,075.19 | 13,449.98 | 11,555.67 | 5,830.22 |
| Average occupancy for Operating Hospitality Assets | 59.33% | 57.74% | 59.54% | 57.45% | 39.62% |
Promoters & Shareholding of Prestige Hospitality Ventures IPO
As of date, according to the DRHP filed with SEBI promoters and promoter group have 100% shareholding in company.
| S.No. | Name of the Shareholder | Numbers of Equity Shares | Percentage of Equity Share |
| 1. | Prestige Estates Projects Limited | 28,81,00,000 | 100% |
| 2. | Total | 288,100,000 | 100% |
Should You Subscribe To Prestige Hospitality Ventures Limited IPO
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of Prestige Hospitality Ventures IPO
Luxury hospitality and strategic location
The company is focused on luxury, upper scale and upper midscale hospitality assets owner and developer in India. PHVL serve to multiple requirements of business and leisure travelers through diverse portfolio of brands with international hotel operators. Hospitality assets of company are located in prime locations such as main commercial centers in markets, situated in Bengaluru, Goa, Delhi, Chennai and Mumbai. These strategic locations help in addressing demands across different segments.
Partnership with global brand
The company maintains high-quality standards and the right selection of management teams for their hospitality assets. Along with it company makes strong relationships with specific brands such as Marriott International, St. Regis, edition Hotels, Resorts & Suites, W Hotels, JV Marriott Hotels & Suites, Marriott Marquis Hotels, Marriott Hotels, Moxy Hotels, Autograph Collection Hotels, Tribute Portfolio Hotels & Resorts and other global brands which enables the company to adapt and collaborate flexibly to meet demand.
Balanced revenue sources
The assets related to hospitality in the company portfolio have an efficient ecosystem that serves to change guest preferences by allocating quality accommodation and offering better dining experiences catering to multiple cuisines, wellness offerings, and other services. Hospitality assets of the company are equipped with different other facilities designed to host a wide range of activities like weeding, social gatherings, corporate meetings & conferences. PHVL enables to attract a diverse clientele spanning through this ecosystem. The company also generates income from contractual projects which include residential and commercial projects in nine months ended as of Dec 31, 2024.
Strong chain of hospitality Assets
The growth of hotel chain-affiliated hotels in India across all segments has been significantly higher compared to inventory growth and the future trend is expected to grow at a CAGR of 9.60% between fiscal 2025 and 2030. The company has seven operating hospitality assets and one ongoing hospitality asset in Bengaluru, Karnataka as of December 31, 2024, and Bengaluru had the largest hotel room inventory in India, according to Horwarth HTL report. The strategic expansion of the company in these markets and suitable demand-supply in such regions give advantage to achieve growth in future period.
Risk Factors of Prestige Hospitality Ventures IPO
Dependency risk
The company majorly relies on Marriott International for hospitality assets operations because seven out of operating hospitality assets are operated by Marriott International. There is the high contribution of Marriott International in revenue of the company contributing to 69.12% and 63.26% of total revenue from the sale of hospitality services for the fiscal 2024 and nine months ended December 31, 2024. The ongoing hospitality assets of the company are to be managed by Marriott International and if these agreements are not assigned in the company name or terminated, it could negatively affect cash flows and financial conditions.
Revenue concentration in hospitality industry
PHVL has derived a significant portion of its income from the hospitality industry in India. The total revenue from hospitality is contributed to 65.42% for nine months ended December 31, 2024 and 77.66% from fiscal 2024. If the company does not successfully diversify its business in the area towards banquet, room service, restaurant, lounge, laundry, spa, and golf course operations. It creates risks for company hospitality revenue in situations of market fluctuations, and competition risk then it may adversely affect business operations and profits of the company.
Geographic concern
The entire operating hospitality assets of the company are situated in Bengaluru, Karnataka. Any changes in policies of states or local authorities, reduction in demand, increased competition, changes in property tax, civil disturbances, and natural calamities in the future particularly in Bengaluru, Karnataka could have adverse effects on company business, cash flow, and profit margins. To handle this risk requires significant capital expenditure which may affect the profitability of the company.
Top 3 assets drive in revenue
The revenue from operating hospitality assets mainly come from three out of seven assets includes JW Marriott Golfshire, Sheraton, and Conrad. The aggregate contribution of these three hospitality assets is 79.30% in the nine months ended December 31, 2024, and 77.68% in fiscal 2024. Any negative customer reviews or unfavorable news coverage could harm the company's reputation and may affect the ability to attract customers which can lead to higher expenses for advertising.
Grey Market Premium of Prestige Hospitality Ventures Ltd IPO
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies' stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the Prestige Hospitality Ventures Limited is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
