IPOs Hit the Suite Spot

A surge in listings signals a new era of scale, ambition, and formalization for India's hospitality industry

- GULVEEN AULAKH

India's hospitality sector is rolling out the red carpet for investors. A flurry of upcoming IPOs, or initial public offerings, the entry of new players, and ambitious expansion plans by Indian and global hotel brands are ushering in what could be the industry's most formalized era yet.

Leading the charge are real estate titans, who are turning their hotel arms into global hospitality chains.

Among the first movers is Bengaluru-based Brigade Enterprises, which has filed for a ₹900 crore public issue for its hospitality arm, Brigade Hotel Ventures. Close on its heels is peer Prestige Group, which is looking to raise ₹2,700 crore via listing Prestige Hospitality Ventures, including a possible ₹340 crore pre-IPO placement.

"The IPO is really to grow the business and unlock value," said Pavitra Shankar, managing director of Brigade Enterprises, which has been in the hospitality space since 2007-08 when it started constructing the Sheraton and Grand Mercure. "The sector has done well, and having come through Covid, we felt the outlook is good."

For Prestige, the listing is a strategic tool to fund expansion, acquisitions and reduce its debt burden of nearly ₹1,121 crore.

New Delhi-based LaRiSa Hotels and Resorts also plans to hit the markets this year. "We are targeting to launch the IPO at the earliest, subject to regulatory approvals and market conditions," said Randhir Narayan, its director. Proceeds will go toward expanding LaRiSa's portfolio, including greenfield developments, brand marketing, environmental, social, and governance (ESG) initiatives, and debt reduction.