Pride Hotels steps up expansion, plans ₹1,000 crore IPO by December

Pride Hotels is looking to launch its initial public offering (IPO) by December, with the issue size expected to be around ₹1,000 crore, as the hospitality chain accelerates expansion across leisure, wedding and corporate events and pilgrimage destinations, CEO Satyen Jain said.

"We have opened nine hotels in the last 12 months. This is the ninth in Indore," Jain said in an interaction with PTI.

The expansion has taken Pride Hotels' portfolio to 40 properties, including eight owned hotels and 32 managed properties. The company has also signed contracts for another 32 hotels, which are expected to open over the next one-and-a-half to two years, taking its portfolio to about 72 properties.

 

"Our focus is on four segments -- going deep in the markets where we are already present, targeting large wedding and MICE (Meeting, Incentive, Conference and Exhibition) hotels, entering new leisure destinations and expanding in pilgrimage," Jain said.

Among these, pilgrimage destinations are emerging as an attractive opportunity, given the strong potential for repeat business.

"Unlike a holiday destination... in pilgrimage, if you believe in that particular God, you will keep going multiple times in a year. So there are a lot of repeat customers," he said.

Puri, for instance, is seen as a promising market as it attracts both religious travellers and wedding-related business, he added.

To support the expansion, the company is also looking to increase the share of owned properties in its portfolio, Executive Director Atul Upadhyay said.

Beyond pilgrimage, Pride Hotels expects leisure travel to benefit from rising per-capita income, better air and highway connectivity and changing consumer preferences. Jain said younger consumers are increasingly prioritising experiences, with the frequency of holidays also rising.

"People are taking much more holidays and its frequency is going up a lot," Jain said, adding that younger consumers increasingly prefer "creating experiences" over acquiring things.

Against this backdrop of expansion, the company is also preparing to tap the capital markets.

"Pride Hotels plans to launch its IPO by December, with the issue size remaining around ₹1,000 crore," Jain said.

The Mumbai-based hospitality chain, which filed its preliminary papers with Sebi in October 2025, received approval to float the IPO in January 2026.

According to the draft papers, the public issue comprises a fresh issue of shares worth ₹260 crore and an offer for sale of up to 3.92 crore shares by promoters and promoter group entities.

The proceeds will be used to fund capital expenditure towards renovation of existing hotels, repayment of debt and general corporate purposes.

Pride Hotels remains focused on the upscale segment and may launch a boutique upper-upscale brand, Pride Lux, as it looks to broaden its offering.

While the expansion outlook remains positive, rising operating costs are emerging as a concern. Chairman and Managing Director (CMD) S P Jain said gas and electricity expenses have risen 8-9 per cent, weighing on the bottom line.

To contain these costs, the company is investing in wind and solar power as well as energy-efficient equipment. He noted that air conditioning accounts for a major share of a hotel's electricity consumption and said efficient chillers could help reduce power usage.

Apart from cost pressure, the CMD also flagged licensing as the biggest challenge for the hospitality industry, saying multiple approvals can delay the opening of hotels even after construction is complete.

"Biggest challenge in hospitality is licences," he said, calling for a more streamlined approval mechanism.

To a query on international foray, Jain said for now, Pride Hotels remains focused on the domestic market and has not signed any overseas hotel. However, the company could explore international markets with significant Indian traveller traffic.