Ventive Hospitality, a joint venture between Blackstone and Panchshil Realty, is set to launch its initial public offering (IPO) on December 20, with a price band of ₹610-643 per share. The company has decided to reduce its IPO size from ₹2,000 crore to ₹1,600 crore, citing sufficient cash flows for its operations. The funds raised from the IPO will be used to pay down debt of around ₹3,000 crore.
Ventive Hospitality owns 13 properties across five cities, most of which are branded under JW Marriott. The company has nine properties in India, three in the Maldives, and one in Sri Lanka. Currently, the company is developing three assets with 367 keys in Varanasi, Sri Lanka, and Bangalore, with preliminary agreements in place with Marriott.
After the IPO, Blackstone will hold a 32.4% stake while Panchshil will hold a 55.5% stake in the company. Ventive Hospitality focuses on aspirational hotels targeted towards the luxury segment, with 38% of its revenues coming from food and beverages and the rest from room rents. The company operates eight out of the top 10 restaurants in Pune and boasts an average room rate of ₹20,000 per night.
Ventive Hospitality claims to control two-thirds of the luxury market, with its hotels fetching a 30% premium Average Room Rate (ARR) compared to other luxury hotels. The company’s overall occupancy rate stands at around 59%, ranging from 51% in the Maldives to 61% in India.
In conclusion, Ventive Hospitality’s upcoming IPO presents an opportunity for investors to be part of a prominent player in the luxury hospitality sector. With a strong portfolio of properties and a focus on quality and luxury, the company is well-positioned for growth in the industry. Investors looking to capitalize on the hospitality sector’s potential may find Ventive Hospitality’s IPO offering attractive.
