Ventive Hospitality, a joint venture between Blackstone Group and Pune-based Panchshil Realty, is planning to file a draft prospectus for an Initial Public Offering (IPO). The company could become India's largest international multi-brand hotel owner by EBITDA. It aims to raise around INR 2,500 crore through new shares. The IPO is expected to be filled in the next few weeks. Ventive Hospitality's move is part of its own strategy. The company seeks to expand India's booming hospitality sector and capitalise on market opportunities.
Ventive Hospitality, a joint venture between Blackstone Group, the world's largest private equity firm, and Pune-based Panchshil Realty, is preparing to file a draft prospectus for an initial public offering (IPO) within the next few weeks, according to sources familiar with the matter. The venture, potentially the largest international multi-brand hotel owner in India by EBITDA, aims to raise approximately INR2,500 crore through a new issue of shares.
Ventive Hospitality's portfolio includes luxury hospitality assets with nine hotels in India, three in the Maldives, and one in Sri Lanka. Additionally, the company manages five office parks and retail spaces totaling around 3.5 million sq ft, all associated with their hotels.
The company has appointed JM Financial and Kotak Mahindra Capital as lead bankers for its IPO and is expected to engage additional bankers before the filing, sources have indicated.Blackstone, Panchshil, JM Financial, and Kotak Mahindra have not yet responded to requests for comment.
Ventive Hospitality reportedly achieved an EBITDA of approximately INR875 crore last year, up from INR771 crore the previous year, positioning it as larger than Chalet Hotels. The company's portfolio includes around 2,400 hotel keys, with about 400 currently under development. In India, it operates six hotels in Pune, two in Bengaluru, and one in Varanasi.
Chalet Hotels, owned by K Raheja Corp, went public with an IPO in 2019 and currently manages 10 fully operational hotels with 3,052 keys, including the JW Marriott Mumbai Sahar and The Westin Mumbai Powai Lake. Last fiscal year, Chalet Hotels saw a 20% increase in EBITDA to INR604 crore and a 52% rise in profit after tax to INR278 crore.
Among Ventive Hospitality's luxury assets, the JW Marriott and The Ritz-Carlton in Pune, as well as Conrad and Anantara in the Maldives, have contributed over 80% of the company's revenue over the past three fiscal years. This IPO would mark Blackstone's first venture into the real estate segment in India. Previously, Blackstone, in partnership with others, has launched three real estate investment trusts (REITs): Embassy Office Parks, Mindspace Business Parks, and Nexus Select Trust.
Ventive Hospitality's upcoming IPO aims to raise INR 2,500 crore, positioning it as a major player in India's hospitality sector. With a strong portfolio and significant revenue growth, this move will enhance its market presence and mark Blackstone's first foray into Indian real estate.
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