Juniper Hotels IPO opens Feb 21; to raise Rs 1,800 crore

Juniper Hotels is a luxury hotel development and ownership company, and are the largest owner, by number of keys of “Hyatt” affiliated hotels in India as of September 30, 2023.

The initial public offering of luxury hotel developer Juniper Hotels, which runs some properties under the Hyatt chain in India, will be open for subscription from February 21 to 23. The price band for the Rs 1,800-crore issue will be announced at a later date.

As per the red herring prospectus, 10 percent of the issue size will be reserved for retail investors.

Juniper Hotels is a luxury hotel development and ownership company, and are the largest owner, by the number of keys of 'Hyatt' affiliated hotels in India as of September 30, 2023.

The company has a portfolio of seven hotels and serviced apartments and as on September 30, 2023.

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"We operated 1,836 keys across the luxury, upper upscale and upscale category of hotels across various locations in India, namely Mumbai, Delhi, Ahmedabad, Lucknow, Raipur and Hampi. We benefit from a unique partnership between Saraf Hotels (and its affiliates) and affiliates of, Hyatt Hotels Corporation," the company said in its RHP.

Juniper Hotels is the only hotel development company in India with which Hyatt has a strategic investment. It owned 19.6 of Hyatt group affiliated hotel rooms and apartments in India as on September 30, 2023

Juniper Hotels will use the proceeds to repay a debt of Rs 1,500 crore, the documents said. The remaining funds will be utilised for general corporate purposes.

Industry overview and financials

The overall demand CAGR for hotels in India is expected to reach 11.6 percent between FY23 and FY28. The luxury and upper upscale segments contributed to 35 percent of the supply share and 55 percent of the revenue share in 2022.

Juniper Hotels' net loss for the year ended March FY23 stood at Rs 1.5 crore, down significantly from Rs 188 crore in the previous year. Revenue from operations more than doubled to Rs 666.85 crore, from Rs 308.7 crore during the same period.