Ventive Hospitality, a joint venture between Blackstone and Panchshil Realty, will launch its IPO on December 20, with a price range between ₹610 and 643 per share.
The company reduced the size of its IPO from the originally planned ₹2,000 crore to ₹1,600 crore as it believed it had sufficient cash flows for its needs. The entire issue is new and the proceeds will be used to pay off debts of around ₹3,000 crore.
The hospitality platform owns 13 properties across five cities and most of the hotels in its portfolio are under the JW Marriott brand. Of the properties, nine are in India, three in the Maldives and one in Sri Lanka. It is developing three 367-key assets in Varanasi, Sri Lanka and Bangalore within the platform and a preliminary agreement has already been signed with Marriott.
Post issue, Blackstone will hold 32.4 percent and Panchshil will hold 55.5 percent.
The platform focused on hotels that are aspirational and focused on the luxury segment, said Atul Chordia, chairman and executive director. About 38 percent of the platform’s revenue comes from the food and beverage segment and the rest from room rentals. The platform operates 8 of the top 10 restaurants in Pune.
The average room rate is around ₹20,000 per night. According to the company, it controls two-thirds of the luxury market, with its hotels having a premium ARR of 30 percent compared to the other luxury hotels.
The total occupancy rate is around 59 percent, ranging from 51 percent in the Maldives to 61 percent in India.
