Pride Group plans IPO to fund hotel expansion

The Mumbai-based Pride Group is coming out with its initial public offering (IPO) to mop up around Rs 600 crore from the market.

The objective of the issue is to raise funds for four new five-star hotels that are in the pipeline, and for expansion and renovation of some of its existing properties. The group has also announced its foray into managing business hotels, and launched the first Pride Biznotel, at Chinchwad, Pune, on Tuesday.

Mr Arun Nayar, Director-Operations, for the group, said the company had received SEBI approval for its draft red herring prospectus.

The IPO is expected around the end of this calendar year.

Greenfield properties

On their expansion plans, Mr Nayar said that greenfield properties were being developed at Mumbai, Goa and Alibag which would go on stream by 2010.

A five-star hotel at Bangalore’s Richmond Road is also due to be commissioned by the year-end. Pride already has five-star hotels at Pune, Nagpur, Ahmedabad and Chennai. “We will more than double the number of five-star rooms from 501 to 1126 by 2010,” he said.

The business hotels will be in the three-star category, Mr Nayar said. “We will only manage them, all capital expenditure will be undertaken by the owner,” he said adding that the Pride Group would expand in this segment in tier two-cities such as Chandigarh, Hyderabad, Kochi, Rajkot and Munnar.

The group has recently undertaken management of a resort at Mahabaleshwar. Another hotel at Jaipur named Pride Ambar Vilas Resort and Spa, built in the style of a Rajasthani haveli, will go on stream in September, reports The Hindu Business Line.