Pride Hotels IPO

About Pride Hotels IPO

The IPO of Pride Hotels comprises a fresh issue and an offer for sale. The fresh issue aggregates up to ₹260 crores and the offer for sale is up to 39,239,446 equity shares. The total issue size is pegged at TBA. It’s a 100% book-built issue. The price band is TBA. The IPO opens on TBA and closes on TBA.

The listing date is on TBA and the allotment date is TBA. The credit of shares to the Demat account will take place on TBA, while the initiation of refund will take place on TBA.

Pride Hotels is a homegrown Indian hospitality brand that owns, develops, operates, and manages a diversified chain of hotels and resorts under the “Pride Hotels and Resorts” banner, with over 38 years of experience in the hospitality industry.

Objectives of Pride Hotels IPO

The company proposes to utilise the IPO proceeds for:

• Funding capital expenditure towards renovation of existing hotels
  
• Repayment and prepayment in full of part of certain borrowings
  
• General corporate purposes
  

Industry Outlook

India had 209k chain affiliated hotel rooms, across segments, as of 30 June 2025. The hotel sector also has a substantial supply pipeline, estimated at 117k rooms which are currently indicated as opening by FY 2030.

Demand for chain affiliated hotels has increased from 61k rooms per day for FY15 to 127k rooms per day at the end of FY25. Demand grew at 7.6% CAGR between FY15 to FY25. Demand growth in the last 3 years, was at 5.6% CAGR between FY23 and FY25. Demand per day for the quarter ended 30 June 2025 was estimated at 126k rooms which reflects +10.6% growth over the quarter ended 30 June 2024.

In the period FY16-FY25, demand growth for chain affiliated hotels in India across all segments is significantly higher compared to inventory growth, with the trend expected to continue till FY30.

Company Information

Pride Hotels is a homegrown Indian hospitality brand that owns, develops, operates, and manages a diversified chain of hotels and resorts under the “Pride Hotels and Resorts” banner, with over 38 years of experience in the hospitality industry.

It undertakes its business through two operating models: (1) ownership of hotels (including through group companies) and (2) hotel management agreements with third-party hotel owners.

Strengths of Pride Hotels

• Pan-India presence with strategically located and diversified portfolio of hotels and resorts
  
• Full-service customised properties which target various customers and multiple needs
  
• Brand legacy and portfolio, with a focus on local Indian customs and traditions
  
• Asset light business model, with a track record of acquisition and turnaround of properties
  
• Focus on operational efficiencies and active asset management
  
• Promoters supported by an experienced management team
  

Risks of Pride Hotels IPO

• Deterioration in the quality or reputation of its “Pride” brands could reduce customer confidence and adversely affect occupancy, revenues and future growth
  
• Dependence on seven-owned hotels for a majority of revenues and profit exposes it to concentration risks
  
• Adverse development affecting Delhi Hotel or the regions in which they operate, may adversely affect business
  
• Dependence on food, beverages and banquet revenues exposes it to risks from changing consumer preferences
  
• Intense competition in the hospitality sector may limit ability to attract and retain guests, impacting occupancy
  
• Dependence on third-party hotel owners for its managed portfolio exposes it to risks of termination, non-renewal or default
  
• Delays, cost overruns or disruptions in renovation and refurbishment of existing hotels may reduce revenues, increase expenses and adversely impact guest experience
  
• Risks relating to execution of its expansion plans, including delays, cost overruns or failure to finalise hotel management agreements, could adversely impact growth
  
• Risks relating to execution of expansion plans, including delays, cost overruns or failure to finalise hotel management agreements, could adversely impact growth
  
• Dependence on travel agents and online intermediaries exposes it to higher commissions, loss of direct bookings, and reputational risks
  

Anchor Investor Bidding Date

TBA

IPO Registrar and Book Running Lead Managers

• IPO Registrar: KFin Technologies
  
• Book Running Lead Managers: Motilal Oswal Investment Advisors and JM Financial
  

Business Model

Pride Hotels operates its portfolio based on brand classification under the following four sub-brands under its anchor “Pride Hotels and Resorts” brand, namely:

• Pride Plaza - This brand is positioned in the upscale hotel segment.
  
• Pride Premier - This brand is positioned in the upper midscale segment.
  
• Pride Elite - This brand is positioned in the midscale segment.
  
• Biznotel by Pride - This brand is positioned in the midscale segment.
  

The four distinct sub-brands enable Pride Hotels to effectively address the diverse preferences and needs of travellers within the upscale to midscale segments.

Company Growth Trajectory

The revenue from operations of Pride Hotels grew from ₹246.191 crores in FY 23 to ₹305.620 crores in FY 25. Its EBITDA margin grew from 38.97% in FY 23 to 47.07% in FY 25, while PAT margin increased from 15.12% in FY 23 to 26.16% in FY 25. The number of hotels increased from 18 in FY 23 to 31 in FY 25. Pan-India presence along with full-service customised properties have helped the company grow over the years.

Market Position

Since 1987, Pride Hotels has transitioned from a single-location operator to a nationally recognised brand with a presence in 32 cities across India as on the date of its DRHP. The company commenced its operations in 1987 with the opening of its first owned hotel in Pune. Subsequently, the company expanded its presence through the acquisition of hotels in Ahmedabad, Nagpur, Chennai, and Kolkata and built new hotels in Bengaluru and New Delhi.

How to Check Allotment Status of Pride Hotels IPO?

1. Visit the Registrar’s Website

• Visit the official website of KFin Technologies
  
• Click on ‘IPO Allotment Status’ from ‘Investors’ under ‘Products’
• Click on any one of the appearing links
  
• Choose IPO name and enter either your application number, Demat account or PAN number
  
• Enter captcha and click on ‘Submit’ to know the status
  

2. Check on the National Stock Exchange Website

The National Stock Exchange (NSE) website has an IPO bid verification module. You can use it to check the allotment status of Pride Hotels IPO. Go to the NSE website and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO bid verification page, enter:

• Company name from dropdown
  
• Application number
  
• PAN
  

Then click 'Submit' to know the allotment status.

3. Check on the BSE Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to the BSE website and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Select 'Equity' from the dropdown menu
  
• Choose 'Pride Hotels' in the next dropdown
  
• Enter your application number
  
• Enter your PAN
  
• Click 'Search’ to know allotment status
  

How to Apply for the Pride Hotels IPO?

To apply for this IPO:

• Log in to your Kotak Neo Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Specify IPO details: Enter the number of lots and the price you wish to apply for.
  
• Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Mandate Notification: Your UPI app will receive a mandate notification to block funds.
  
• Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.