About Company

• Apeejay Surrendra Park Hotels Limited (“Park Hotels”) was incorporated on November 27, 1987.  Park Hotels is the 8th largest in India in terms of chain affiliated hotel rooms inventory amongst hotel chains with asset ownership as of September 30, 2023. Of the 45,800 rooms owned by chained affiliated hotels across the country as at September 30, 2023, the company comprises of about 1,300 rooms constituting 2.80% of the total inventory.

• They operate hospitality assets under their own brands, “THE PARK”, “THE PARK Collection”, “Zone by The Park”, “Zone Connect by The Park” and “Stop by Zone”. Park Hotels have a long-standing expertise of over 55 years in the hospitality business of owning and operating hotels, with their 1st hotel being launched under the brand “THE PARK” at the iconic Park Street in Kolkata. The company classifies (a) "THE PARK" and "THE PARK Collection" brands under the upscale category, and (b) “Zone by The Park”, and “Zone Connect by The Park" under upper mid-scale category.

• Park Hotels has established presence in the retail food and beverage industry through their retail brand ‘Flurys’. They have pioneered the concept of luxury boutique hotels in India under their brand, “THE PARK”, extending it further through and “THE PARK Collection”, and in upper-midscale categories with their brands “Zone by The Park” and “Zone Connect by The Park”.

• Currently the company operates 30 hotels across upscale to upper midscale category, with pan-India presence representing 2,298 rooms. they have grown their business geographically with the opening of 13 managed and leased hotels in the last 3 years, adding 686 rooms to their total portfolio.

• As of September 30, 2023, they operate 81 restaurants, night clubs and bars, offering a wide selection of culinary experiences. The night club and entertainment division contribute to their brand positioning and allows cross-selling opportunities. They have created award-winning brands such as Zen, Someplace Else, Tantra, Roxy, iBar, The Leather Bar, Pasha and Aqua.

Strengths

Competitive Strength 

• Built successful hospitality brands through product innovation and service excellence to attract customer through a diversified and holistic offering;

• A diversified Pan India portfolio of owned, leased and managed hotels that are strategically located across metros and emerging cities;

• High occupancy rate and REVPAR with a strong financial and operational track record;

• High F&B and Entertainment contributions which adds to stable and non-cyclical earnings while complementing the hotel business;

• “Flurys” is an iconic brand with a successful and profitable track record of industry leading EBITDA margins;

• Dedicated and experienced leadership team with high standards of corporate governance. 

Business Strategies 

• Continued focus on the development of existing land banks and strategic allocation of capital;

• Optimise capital efficiency through the adoption of the asset light model with an optimal portfolio of owned, leased and managed hotels and to further strengthen, develop and expand their existing brands

• Improving operational efficiency to achieve superior performance;

• Further develop and strengthen the ‘Flurys’ brand in the retail food and beverage business through expansion plans.

Company Promoters

Company Financials

Apeejay Surrendra Park Hotels Limited's revenue increased by 95.81% and profit after tax (PAT) rose by 270.42% between the financial year ending with March 31, 2023 and March 31, 2022.

Objects of the Issue

The company proposes to utilise the Net Proceeds towards funding the following objects:

1. Repayment/ prepayment, in full or in part of certain outstanding borrowings availed by the Company; and
2. General corporate purposes