- Pride Hotels plans to launch an IPO by December with an issue size of Rs 1,000 crore
- The hotel chain has 40 properties and aims to expand to 72 in the next 18-24 months
- Expansion focuses on leisure, weddings, corporate events, and pilgrimage destinations
Pride Hotels is planning to launch its initial public offering by December as the hospitality chain steps up expansion across leisure, weddings, corporate events and pilgrimage destinations. The issue size for the IPO is expected to remain around Rs 1,000 crore.
The company is also looking to increase the share of owned properties while continuing to expand its managed hotel portfolio. Pride Hotels CEO Satyen Jain said the chain has opened nine hotels in the last 12 months, taking its total portfolio to 40 properties.
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Pride Hotels Targets 72 Properties
The portfolio currently includes eight owned hotels and 32 managed properties. The company has also signed contracts for 32 more hotels, which are expected to open over the next 18-24 months. This could take the total portfolio to around 72 properties.
Jain said the company's expansion strategy is centred on four areas — strengthening its presence in existing markets, targeting large hotels catering to weddings and the Meetings, Incentives, Conferences and Exhibitions (MICE) segment, entering new leisure destinations and expanding in pilgrimage markets.
Pride Hotels sees pilgrimage destinations as a particularly attractive opportunity because of the potential for repeat visits. Puri, for instance, is being viewed as a promising market because of its combination of religious tourism and wedding-related demand.
The company expects leisure travel to benefit from higher per-capita income, improving air and highway connectivity and changing consumer preferences. Jain said younger consumers are increasingly prioritising experiences and taking holidays more frequently.
IPO Proceeds To Fund Renovation And Debt Repayment
Pride Hotels had filed its preliminary IPO papers with the Securities and Exchange Board of India in October 2025 and received approval for the same in January 2026.
According to the draft papers, the IPO comprises a fresh issue of shares worth Rs 260 crore and an offer for sale of up to 3.92 crore shares by promoters and promoter group entities. The proceeds are proposed to be used for capital expenditure, including the renovation of existing hotels, repayment of debt and general corporate purposes.
The company remains focused on the upscale hospitality segment and is also considering launching a boutique upper-upscale brand, Pride Lux.
At the same time, rising operating costs remain a concern. Chairman and Managing Director S P Jain said gas and electricity expenses have increased by 8-9%, putting pressure on profitability. Pride Hotels is investing in wind and solar power, along with energy-efficient equipment, to contain these expenses.
The company has also identified licensing as a key challenge for the hospitality sector, as multiple approvals can delay hotel openings even after construction is completed.
For now, Pride Hotels remains focused on the domestic market and has not signed any overseas hotel deals. However, the company could consider international markets with significant Indian traveller traffic in the future.
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