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Our brands have a style and energy of their own: Apeejay Surrendra Park Hotels chairperson

The time is right for Apeejay Surrendra Park Hotels to go public as the markets are doing ‘great’ and a public listing will propel the company towards a new journey, said Priya Paul, chairperson, Apeejay Surrendra Park Hotels on the hospitality chain’s Rs 920 crore IPO that opens on February 5.
“We see growth happening across all segments, and our differentiated hotels have a style and energy of their own. This sets us apart from our competitors in the listed space. We hope to be everywhere soon and are targeting 56 hotels by 2026,” she added.

The chain that runs hotels under THE Park brands across segments such as luxury boutique, upscale and upper midscale, currently has 30 hotels across 20 cities.

The fresh issue of the chain is of Rs 600 crore and the offer for sale is of Rs 320 rore. The price brand is Rs 147-155 per equity share. The offer opens on February 5 and closes on February 7. The company said the IPO proceeds of about Rs 550 crore will be utilised towards the repayment of the debt. The company had a net debt Rs 550 crore at the end of fiscal year 2023.

Within its portfolio, the chain owns seven hotels totaling 1,101 keys, manages 20 hotels totalling 1,018 keys and has three leased hotels with 179 keys.

“We see growth in all segments including owned and leased properties and those under management. Our pipeline is a healthy mix of owned, as well as leased and managed contracts,” said Paul.The hospitality chain’s F&B and nightclub brands include Aqua, Someplace Else, Tantra, Aish and Peace, and the company said its F&B retail brand Flurys brand that has 73 outlets is successful and profitable with ‘industry leading’ EBITDA margins.“F&B operations have been a cornerstone of our business. We run about 81 bars, restaurants and nightclubs across different brands. This gives us repeat customers and the country’s highest occupancy rate at 92%. That’s what makes our brands exciting to stay in,” said Paul.

“F&B has contributed about 42% to our total revenues in the first six months of this year, and that trend will continue. We have put a lot of emphasis in building brands that are exciting and different and we will continue doing that,” she added.

Within the luxury boutique and upscale portfolio, the chain operates THE Park hotels, and THE Park Collection properties. In the upper midscale segments, it has brands such as Zone by THE Park and Zone Connect by THE Park, and the economy portfolio comprises of Stop by Zone. For fiscal year 2023, the company reported a total income of Rs 522.4 crore and a profit after tax of Rs 48 crore.

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