New Delhi: Pride Hotels plans to deploy a significant portion of its fresh issue proceeds towards upgrading its existing assets. Of the total funds raised, Rs 159.68 crore will be used to modernise and renovate owned hotels, while Rs 40 crore is earmarked for debt repayment. The remaining amount will be utilised for general corporate purposes. As of March 2025, the company’s total borrowings stood at Rs 65 crore, according to draft papers.
Explaining the utilisation strategy, Chief Executive Officer Satyen Jain said the company will roll out renovations over a 12–27 month period, covering six of its seven owned hotels. These properties are located in key metros including New Delhi, Ahmedabad, Kolkata, Bengaluru, Pune and Chennai.
Portfolio and Operating Model
Founded nearly four decades ago, Pride Hotels operates under the “Pride Hotels and Resorts” brand. Its current portfolio comprises 34 hotels, including seven owned properties and 27 managed hotels. The company has increasingly leaned on an asset-light, managed-hotel model to scale faster while limiting capital expenditure.
Aggressive Expansion Pipeline
Pride Hotels has expanded rapidly in recent years, growing from 19 hotels in 2019 to 34 currently. Jain said the company has another 32 properties in the pipeline, expected to become operational over the next two to three years, strengthening its pan-India presence.
The expansion strategy targets business hubs, leisure destinations and pilgrimage centres. Within the pipeline, 21 properties are under development, adding around 1,500 keys across 19 locations. Upcoming destinations include Aurangabad, Nainital, Amritsar and Alwar, along with pilgrimage centres such as Ayodhya and Palitana.
In addition, Pride Hotels has signed 11 letters of intent with third-party owners, which will add about 841 keys to its network. Most of this growth will be driven through managed properties, though the company will selectively pursue owned hotel acquisitions where turnaround opportunities exist.
Financial Performance and Industry Outlook
On the financial front, Pride Hotels reported a rise in profit after tax to Rs 83.5 crore in FY25 from Rs 66 crore a year earlier. Revenue increased to Rs 305.62 crore from Rs 270 crore during the same period.
Industry conditions remain supportive. A Horwath Report notes that India had 209,000 chain-affiliated hotel rooms as of June 30, 2025, with another 118,000 rooms expected by FY30. Nearly two-thirds of upcoming supply is projected outside the top six metros, though rising competition in Tier 2 and Tier 3 cities could pressure margins.
