Apeejay Surrendra Park Hotels Limited I IPO I IPO GMP I Share Price

About Apeejay Surrendra Park Hotels Limited

Apeejay Surrendra Park Hotels Limited (ASPHL) is one of the leading hotel chains in India, with a network of contemporary luxury boutique hotels across the country. The company is part of the Apeejay Surrendra Group, a diversified conglomerate with over 90 years of experience in various industries.

History

Apeejay Surrendra Park Hotels Limited was incorporated in 1986 and launched its first hotel, The Park, in Kolkata in 1987. The company has since expanded its portfolio to include over 20 hotels in major cities and  tourist destinations across India. 

Brands

ASPHL operates under five distinct brands:

1. The Park

2. The Park Collection

3. Zone by The Park

4. Zone Connect by The Park

5. Stop by Zone

Apeejay Surrendra Park Hotels Strengths & weakness

Strengths: 

·         Established brand presence with a diversified portfolio

·         Experienced management team

·         Growing hospitality industry in India 

Weaknesses: 

·         Relatively small compared to bigger hotel chains 

·         High valuation 

·         Reliance on the Indian market 

Apeejay Surrendra Park Hotels Limited (ASPHL) Financials Analysis (as of March 31, 2022)

Financials:

· Revenue: ₹ 526 Cr (up 63% YoY)

· EBITDA: ₹ 140 Cr (up 141% YoY)

· EBITDA Margin: 26.6% (up from 15.7% YoY)

· PAT (Profit After Tax): ₹ 60 Cr (up 147% YoY)

· Debt-to-Equity Ratio: 0.27 (healthy level)

· Occupancy Rate: 50% (industry average is around 40%)

· Average Room Rate (ARR): ₹ 6,400 (up 22% YoY)

Positives:

· Strong revenue and profit growth, indicating a successful post-pandemic recovery.

·  Significant improvement in EBITDA margin, reflecting efficient cost management.

· Healthy debt-to-equity ratio suggests strong financial stability.

· Above-average occupancy rate demonstrates strong demand for their hotels.

· Increasing average room rate signifies pricing power and improved revenue potential.

Negatives:

· Relatively small revenue base compared to industry giants.

·  Limited geographical presence, concentrated mainly in India.

· Susceptible to fluctuations in the hospitality industry.

Competitors of Apeejay Surrendra Park Hotels Limited (ASPHL):

1.  Indian Hotels Company Limited (IHCL): IHCL is one of the largest hotel chains in India, with a portfolio of over 180 hotels across 80 destinations. It operates brands such as Taj Hotels, Vivanta, Ginger, and SeleQtions.

2. EITC Marriott Hotels: EITC Marriott Hotels is a joint venture between Marriott International and Emirates Trading Agency (ETA). It operates over 80 hotels across the Middle East and Africa under brands such as Marriott, Sheraton, Ritz-Carlton, and JW Marriott.

3.  The Oberoi Group: The Oberoi Group is a luxury hotel chain with over 30 hotels in India, the Middle East, and North Africa. It operates brands such as The Oberoi, Trident, and Vivanta by Taj.

4.  Radisson Hotel Group: Radisson Hotel Group is a global hotel chain with over 1,400 hotels in over 120 countries. It operates brands such as Radisson Blu, Park Inn by Radisson, and Country Inn & Suites by Radisson.

5.  Hilton Worldwide: Hilton Worldwide is a global hotel chain with over 6,600 hotels in over 118 countries. It operates brands such as Hilton Hotels & Resorts, Conrad Hotels & Resorts, and DoubleTree by Hilton.

6.  AccorHotels: AccorHotels is a global hotel chain with over 5,300 hotels in over 110 countries. It operates brands such as Sofitel, Novotel, Mercure, and Ibis

These are just a few of the many competitors that Apeejay Surrendra Park Hotels Limited  faces. The competitive landscape in the hotel industry is constantly evolving, and Apeejay Surrendra Park Hotels Limited  will need to continue to innovate and adapt in order to maintain its market share. 

Here are some additional factors that  Apeejay Surrendra Park Hotels Limited  will need to consider when competing with its rivals:

• Location: Apeejay Surrendra Park Hotels Limited  are primarily located in India, while some of its competitors have a wider global reach. This could give Apeejay Surrendra Park Hotels Limited  a competitive advantage in the Indian market, but it could also limit its growth potential in other parts of the world.
• Brand: Apeejay Surrendra Park Hotels Limited  brands are well-known in India, but they may not be as well-known in other countries. This could make it more difficult for Apeejay Surrendra Park Hotels Limited  to attract international guests.
• Price: Apeejay Surrendra Park Hotels Limited  are generally priced at a premium, which could make them less appealing to budget-conscious travelers. However, its focus on luxury amenities and experiences could justify the higher prices for some guests.
• Customer service: A Apeejay Surrendra Park Hotels Limited  is known for its excellent customer service, which could give it a competitive edge over some of its rivals.

The Apeejay Surrendra Park Hotels Limited  IPO is currently open for subscription, and it's definitely a hot topic in the Indian market. Here's what I can tell you about it:

IPO Details:

·         Issue Size: ₹920 Crore

·         Price Band: ₹147 - ₹155 per share

·         Offer Type: Book Building with Fresh Issue and Offer for Sale (OFS)

·         Open Date: February 5, 2024

·         Close Date: February 7, 2024

·         GMP (Grey Market Premium): ₹25 as of February 1, 2024

·         Listing Date: Expected February 12, 2024 on BSE and NSE

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