SEBI Grants Approval for Pride Hotel’s ₹1,000+ Crore IPO

The Indian primary market just got a head start with the SEBI giving approval to the initial public offering of one of the largest hospitality chains, Pride Hotels Limited. Clearing a key regulatory hurdle signals that one of the year’s marquee IPOs is finally moving from planning to execution.

The regulator’s observation letter, issued on January 16, 2026, has formally greenlit Pride Hotels Limited, the hospitality chain operator. The IPO is estimated to be around ₹1000 Cr, comprising a fresh issue of equity shares aggregating up to ₹260 Cr. It involves an offer for sale (OFS) of up to 39.24 million equity shares by promoters, selling shares each having a face value of ₹5. 

Founded in 1983 by Sureshchand Premchand Jain, Pride Hotels Ltd. has grown from operating just one hotel in Pune to being one of India’s largest hospitality brands with 34 locations. The hotels are either owned or managed by the company. These include Pride Plaza, Pride Premier, Pride Elite and Biznotel brands located mainly in business centres, leisure locations and religious sites, to accommodate both domestic and international guests. 

As of the DRHP filing, the company owns 2723 keys. Out of which 1136 keys come under the seven hotels owned by the company. Apart from this, 27 hotels, owned by third parties, comprising 1587 keys, are operated and managed by the company in return for fees and performance-based profit.

Overall Portfolio Metrics

Metric	FY25	FY24	FY23
Number of Hotels	29	23	17
Number of Keys	2,567	2,126	1,834​

As for future expansion plans, by FY29, the company plans to add another 21 hotels, comprising around 1500 keys owned by third parties, under its operation and management 1500 keys. The company also has a letter of intent for 11 more hotels (841 keys), making the total potential growth of upto 32 hotels.

Product Category

The company has a portfolio of four different types of hotels, providing diversified offerings and reaching a wide customer base.

Pride Plaza (Upscale): This includes premium hotels for corporate travellers, weddings etc in metro cities like Delhi and Ahmedabad.

Pride Premier (Upper Midscale): These are value stays for professionals and families. Hotel spread across cities like Nagpur, Pune, and Chennai.

Pride Elite (Midscale): It involves a comfortable option for leisure and religious visits in cities like Haridwar, Dwarka, and Udaipur.

Biznotel by Pride (Midscale Business): These are budget-friendly hotels for brief business stays in tier-2 & tier-3 cities.

Key Financials

• Revenue in FY25 at 319 Cr, with topline growth of 12% from the previous year FY25. 

• EBITDA margins at 47%, up by 15 bps from FY24. 

• PAT margins 26% respectively, up by 300bps.

• Product Portfolio rose to 34 hotels and 2,723 keys from 24 hotels and 2,126 keys in FY24.

• ROE & ROCE currently stand at 12.7%, ROCE at 19.2%, both marginally up from previous years.

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Operational Metrics

Metric	FY25	FY24	FY23	YoY Change
ADR (₹)	6,569	6,148	5,266	6.9%
Average Occupancy (%)	72.4	68.2	72.5	4.6 bps
RevPAR (₹)	4,758	4,194	3,819	13.5%

While looking at the key operation metrics, the following trends were observed:

• ADR increased from ₹6,148 (FY24) to ₹6,569 (FY25). That's a good 6.9% increase from the previous year. It shows that, on average, customers are willing to pay more.

  
  

• RevPAR has raised 13.5% year over year from ₹4,194 to ₹4,758. According to this money-making metric, they are getting more paying guests, relative to total rooms available.

  
  

• Occupancy In FY25, increased to 72.4% from 68.2% in the previous year (+4.6 points). While a slight dip was observed in FY24 relative to the previous year.

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IPO Objectives

Pride Hotels Limited's IPO proceeds (from the fresh issue of up to ₹260 crore) will primarily fund the following objectives: 

• Renovation of owned hotels: Over the course of 12 to 27 months, about ₹159.68 crore will be used to modernise, refurbish, and upgrade six of the seven owned properties (which include New Delhi, Ahmedabad, Kolkata, Nagpur, Pune, and Chennai).

  
  

• Repayment of debt: ₹40 crore will be used to strengthen the balance sheet by repaying or prepaying some borrowings.

  
  

• General Corporate Purpose: Balance of net proceeds for working capital, strategic projects, and other operational requirements is used for general corporate purposes.

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Note: Pre-IPO placement (up to ₹52 crore) could reduce the size of a new issue if pursued; OFS proceeds (₹740 crore of the ₹1,000 crore total) go to selling shareholders.

Conclusion

Since 2017, Pride Hotels has given more than 20% CAGR in sales growth. The company operates with an asset-light model and has diversified product offerings across multiple categories. Considering the management guidance of potential growth of 32 hotels, the company is almost doubling its base of 29 hotels in FY25. Along with that, management must ensure improvement in its occupancy level, which currently stands at around 72%.

Overall, Pride Hotels is in a high-growth industry supported by an increase in leisure activities, tourism and MICE-related travel. The ample growth potential backed by decent financial performance makes Pride Hotels an attractive bet.