Ventive Hospitality, a joint venture between Blackstone and Panchshil Realty, will launching its initial public offer on December 20, with a price band in the range of ₹610-643 a share.
The company has scaled down its IPO size from its originally planned ₹2,000 crore to ₹1,600 crore as it felt that it had enough cash flows for its needs. The entire issue is a fresh one , and the proceeds will be used to pay down debt of around ₹3,000 crore.
The hospitality platform owns 13 properties across five cities and most of the hotels in its portfolio are JW Marriott branded. Of its properties, nine are in India, 3 in Maldives and one in Sri Lanka. It is developing 3 assets with 367 keys in Varanasi, Sri Lanka and Bangalore within the platform and a preliminary agreement with Marriott is already in place.
Post the issue Blackstone will be holding 32.4 per cent stake and Panchshil 55.5 per cent stake.
The platform was focusing on hotels that are aspirational and targeted towards the luxury segment, said Atul Chordia, Chairperson and Executive Director. About 38 per cent of the revenues of the platform comes from the food and beverages segment and the remaining from room rents. The platform operates 8 out of the top 10 restaurants in Pune.
Its 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 30 per cent premium ARR compared to the other luxury hotels.
Its overall occupancy is at around 59 per cent, ranging from 51 per cent in the Maldives to 61 per cent in India.