Tea Post Files Draft Papers for IPO...
14 Jun, 2025
The Indian hospitality sector is witnessing a flurry of activity as several hotel chains prepare to tap the capital markets, buoyed by robust growth in domestic tourism and promising returns from recently listed peers. With travel demand surging and disposable incomes on the rise, companies are looking to leverage public offerings to fuel expansion, reduce debt, and attract new investor interest.
Lemon Tree Hotels: The company plans to list its unit, Fleur Hotels, within the next two years. Patanjali Keswani, Chairman and Managing Director, recently stated that the company aims to be debt-free by the time of its listing.
Oyo: The hospitality giant has invited five investment banks to London for a pivotal meeting with SoftBank, a major stakeholder, next month. The outcome of this meeting could influence the company's approach to an initial public offering.
Pride Hotels Group: According to sources, Pride Hotels has started the preliminary preparations for its initial public offering, with more than 60 hotels and 5,500 keys spread throughout India, including new agreements in Gandhinagar, Gujarat, and Surat.
LaRiSa Hotels & Resorts: With roughly 32 hotels and 1,100 rooms, this boutique group hopes to list as soon as possible this year. Randhir Narayan, the director, emphasised the company's good cash flow and profitability.
Other Notable Players: The Leela Palaces, Hotels and Resorts (owned by Brookfield Asset Management) is set to list on June 2, following the conclusion of its IPO. Prestige Hospitality Ventures and Travel Food Services have also filed for or received regulatory approvals for their IPOs, targeting fundraises of up to Rs 2,700 crore and Rs 2,000 crore, respectively. Brigade Hotel Ventures is another contender, aiming to reduce debt and pursue growth opportunities through its proposed Rs 900 crore IPO.
A post-pandemic rebound in both business and leisure travel is helping the hospitality industry. Strong returns have been achieved by listed hotel stocks; Ventive Hospitality and Samhi Hotels, for example, have had increases of over 18% and almost 52%, respectively, since their first public offerings.
Given the growth of India's tourist sector, domestic investors are probably going to have a high demand for hospitality equities. Increased travel, increased disposable incomes, and a post-pandemic rebound in both leisure and business travel are all helping the industry, according to Dharmesh Mehta, MD and CEO of DAM Capital. He went on to say that the industry is appealing from a pricing standpoint because listed hotel companies are currently trading at fair valuations.
As the sector rides the wave of domestic tourism growth, more hospitality companies are expected to join the IPO bandwagon. Sensible valuations and strong investor appetite are likely to drive healthy participation in upcoming public offerings, further energizing India’s hotel and travel industry.
