**Prestige Group Plans Major Expansion in Hospitality Sector**
Prestige Hospitality Ventures, a subsidiary of Prestige Estates Projects Ltd, is gearing up for a public listing to raise between ₹2,000-2,500 crore. The company, which manages the hospitality assets of the Bengaluru-based Prestige Group, is expected to submit its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) within the next two weeks. This move aligns with the group’s strategy to double its hospitality portfolio over the next three to four years.
The funds raised from the initial public offering (IPO) will primarily support the expansion of its hotel and hospitality operations, with plans to dilute a 10% stake in the subsidiary. Additionally, part of the proceeds may be allocated to reducing existing debt.
Prestige Hospitality Ventures currently operates eight hotels with a total of 1,477 keys and has four ongoing projects that will add another 1,137 keys. Notable properties include the JW Marriott Prestige Golfshire and Conrad Bengaluru. The company is also developing a St Regis hotel and a Marriott Marquis hotel and convention center in Delhi’s Aerocity, which will collectively feature nearly 800 keys.
The decision to pursue a public listing comes as the hospitality and tourism market in India continues to thrive, prompting Prestige Group to accelerate its hotel business expansion. The group has a robust pipeline of 11 hotel projects across major cities, including Bengaluru, Chennai, Mumbai, Goa, Hyderabad, and Hassan, which will add approximately 2,146 keys to its portfolio.
As Prestige Group focuses on enhancing its hospitality offerings, the upcoming IPO marks a significant step in its growth strategy, reflecting the company’s commitment to capitalizing on the booming hospitality sector in India.
**FAQ**
*What is the purpose of Prestige Hospitality Ventures’ IPO?*
The IPO aims to raise funds for expanding the company’s hotel portfolio and may also be used to reduce existing debt.