Pride Hotels IPO

Strengths · 7

• 01Revenue from operations grew from Rs 246.19 crore in FY2023 to Rs 270.04 crore in FY2024 and Rs 305.62 crore in FY2025.
• 02Profit after tax rose from Rs 37.66 crore in FY2023 to Rs 66.03 crore in FY2024 and Rs 83.51 crore in FY2025.
• 03Total borrowings fell from Rs 115.66 crore in FY2023 to Rs 65.14 crore in FY2025, and net debt to total equity came down from 0.31 to 0.04.
• 04Net cash from operating activities was Rs 118.20 crore in FY2025 against profit after tax of Rs 83.51 crore.
• 05The company has 7 owned hotels with 1,136 rooms and 27 managed hotels with 1,587 rooms. Pride Plaza Delhi is the fifth largest hotel in the upscale segment in India, as per the Horwath report.
• 06Managed hotel profit before tax rose from Rs 2.27 crore in FY2023 to Rs 7.15 crore in FY2025, and 21 more hotels with about 1,500 keys are under development.
• 07Receivable days were 18.98 in FY2025, against 23.54 in FY2024, so customers pay quickly.

Risks · 10

• 01Owned hotels gave 93.76% of profit before tax in FY2025, so the business depends on seven properties.
• 02The Delhi hotel alone gave 49.07% of owned-portfolio revenue in FY2025, and 66.09% of owned-portfolio revenue is room revenue.
• 03Travel partners and online agents gave 47.80% of owned-hotel room revenue in FY2025, up from 42.94% in FY2023, which adds commission pressure.
• 04Corporate accounts gave 33.21% of room revenue in FY2025, so a drop in business travel would hurt.
• 05The offer includes an offer for sale of up to 3,92,39,446 shares by 15 promoter and promoter group sellers. The company gets no money from this part.
• 06The sellers' average cost of acquisition per share ranges from Rs 0.04 to Rs 42.53, far below what the IPO will likely ask from new investors.
• 07Rs 159.68 crore of the fresh issue goes to renovating six existing hotels over 12 to 27 months, and delays or cost overruns could hurt revenue. General corporate purposes amount is not yet fixed.
• 08Contingent liabilities were Rs 26.65 crore as on 31 March 2025, of which property tax was Rs 20.17 crore.
• 09There are 3 criminal cases and 7 tax cases against the company, with Rs 21.69 crore involved. Two guest drowning incidents at Pune and Nagpur hotels are mentioned in litigation.
• 10Auditors could not comment on the audit trail of 2 accounting software used for the general ledger and front-end sales, which are run by third-party providers.

Pride Hotels Limited owns and operates a network of 34 hotels and resorts across India with 2,723 rooms. Seven hotels with 1,136 rooms are owned by the company. The other 27 hotels with 1,587 rooms are managed under hotel management agreements for third-party owners. The company began operations in 1987 with its first hotel in Pune and adopted an asset-light management model in 2008.

The hotels operate under four sub-brands. Pride Plaza is positioned in the upscale segment and Pride Premier in the upper midscale segment. Pride Elite and Biznotel by Pride are in the midscale segment. The owned hotels are in Delhi, Ahmedabad, Kolkata, Pune, Bengaluru, Nagpur and Chennai. The portfolio also covers leisure and pilgrimage destinations. The company has 50 food and beverage outlets and over 90 banquet facilities.

Most of the money comes from the owned hotels. In FY2025 the owned portfolio earned Rs 298.47 crore of revenue from operations, of which room revenue was Rs 197.27 crore and food and beverages Rs 86.91 crore. The Delhi hotel alone gave 49.07% of that revenue. Managed hotels earn fees and contributed Rs 7.15 crore of profit before tax in FY2025, against Rs 107.41 crore from owned hotels.

Bookings come through several channels. In FY2025, travel partners and online agents gave 47.80% of owned-hotel room revenue, corporate bookings 33.21%, the company website 4.46% and other direct bookings 14.53%. The company has 21 hotels under development with about 1,500 keys and has signed 11 letters of intent for about 841 more keys. The registered office is at Delhi Aerocity and the corporate office is in Mumbai. The company was incorporated in 1983 as Pride Hotels Private Limited and became a public company in 2005.

The industry

The Horwath report cited in the document puts the Indian hospitality market at USD 32 billion in 2023 and expects USD 57 billion by 2028, a growth rate of about 12% a year. Demand comes from domestic travel, business travel, MICE events and pilgrimage tourism. India had 209,000 chain-affiliated rooms as at 30 June 2025, and another 118,000 rooms are expected by FY2030, with 66% coming up outside the top six metros.

Customer concentration: Corporate bookings gave 33.21% of owned-portfolio room revenue in FY2025 (37.95% in FY2024), and travel partners and online agents gave 47.80%.