The proposed IPO includes a fresh issue of shares worth Rs 260 crore and an offer for sale (OFS) of 3.92 crore shares by existing shareholders.Of the proceeds from the fresh issue, Rs 159.68 crore will be used to modernize and renovate existing hotels, Rs 40 crore for debt repayment and the balance for general corporate purposes.
Total borrowings stood at Rs 65 crore as of March 2025, the draft documents showed.
Elaborating on the utilization plan, Jain told PTI that the company plans to deploy the funds for renovation, renovation and upgrade of six of the seven hotels in its portfolio over the next 12 to 27 months. These properties are located in New Delhi, Ahmedabad, Kolkata, Bengaluru, Pune and Chennai.
Pride Hotels was founded almost four decades ago and operates its hotel chain and resorts under the brand “Pride Hotels and Resorts”. The current portfolio of 34 hotels consists of seven owned and 27 managed properties. In addition to renovating its existing assets, the company is also accelerating its expansion plans.
Chief Executive Officer Satyen Jain said Pride Hotels has expanded its footprint from 19 hotels in 2019 to 34 currently, and has another 32 hotels in the pipeline that are expected to become operational in the next two to three years.
He added that the expansion strategy is aimed at strengthening the company’s pan-India presence, with a focus on business centres, leisure destinations and pilgrimage sites.
Within the pipeline portfolio, Pride Hotels has 21 properties under development, with a total of approximately 1,500 keys across 19 locations. These include emerging business and leisure destinations such as Aurangabad, Nainital, Amritsar and Alwar, as well as pilgrimage sites such as Ayodhya and Palitana.
In addition, the company has signed 11 letters of intent with third-party owners to operate additional hotels and resorts, adding approximately 841 keys to the network.
This expansion will be largely driven through the managed portfolio under an asset-light model, enabling rapid scale-up with limited capital expenditure, the CEO said.
At the same time, he said the company plans to selectively pursue opportunities in its own portfolio, including the acquisition of strategically located hotels that offer the potential for an operational turnaround.
On the financial front, the company reported an increase in profit after tax to Rs 83.5 crore in FY25, compared to Rs 66 crore in the previous fiscal, while revenue rose to Rs 305.62 crore from Rs 270 crore.
The outlook for the sector also remains supportive and according to a Horwath report, India’s hospitality sector had 209,000 hotel chain affiliated rooms as of June 30, 2025, while another 118,000 rooms are expected by FY 2030. In addition, approximately 66 percent of upcoming supply is expected to come from cities outside the six largest metros.
However, this rapid expansion, especially in Tier 2 and Tier 3 cities, is expected to intensify competition between segments and regions.
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