Panchshil-Blackstone’s Ventive Hospitality to file for Rs 2,000 crore IPO this week

Panchshil-Blackstone hospitality firm Ventive Hospitality to file for Rs 2,000 Crore IPO this week

Ventive Hospitality Pvt Ltd, a joint venture between Panchshil Realty and Blackstone, is gearing up to file its initial share sale documents to raise Rs 2,000 crore, multiple people aware of the development said.

The joint venture operates a portfolio of 17 assets, including 13 core hotels and four mixed-use properties. The company operates 2,036 hotel keys, with an additional 367 keys under construction.

Panchshil and Blackstone are looking to file the Draft Red Herring Prospectus (DRHP) this week, and the filing may happen as early as Tuesday, the people said, requesting anonymity.

Ventive Hospitality plans to use the proceeds from the IPO to fund the expansion of its hospitality portfolio, the people said, adding that there will be no secondary sale of shares by Blackstone or Panchshil.

The company’s upcoming projects include a 167-key hotel under the Marriott brand in Varanasi, an 80-key luxury resort, The Ritz-Carlton Reserve in Sri Lanka, and the addition of 120 keys to the Marriott Aloft in Bengaluru’s Whitefield. In the hospitality industry, ‘keys’ is a term used to refer to hotel rooms.

Kotak Mahindra Capital, JM Financial, ICICI Securities, Bank of America, HSBC, Citi, IIFL and SBICaps are managing the IPO, the people said.

Ventive started as the hospitality division of Panchshil group. In 2017, Blackstone became a joint venture partner in the company. Today, Panchshil owns a 60 percent stake in Ventive, while Blackstone holds the remaining 40 percent stake.

An email sent to a spokesperson for Panchshil did not elicit a response, while a Blackstone spokesperson declined to comment.

Ventive Portfolio

Ventive is the Largest hospitality platform promoted by a real estate developer, the sources cited above said, adding that Ventive is also India’s third largest hospitality platform after Taj and Oberoi by Ebitda (earnings before interest, tax, depreciation and amortisation).

Its portfolio comprises luxury properties such as the JW Marriott and Ritz-Carlton in Pune; Anantara, Conrad and Raaya by Atmosphere in Maldives

Other properties include Marriott Suites, Double Trees by Hilton, Oakwood Residences, Courtyard by Marriott in Pune, Marriott Aloft Whitefield and Marriott Aloft ORR in Bengaluru.

Apart from the hotels, Ventive also owns four mixed-use properties in Pune with a total of 3.4 million sq ft of leasable area. This includes three office properties - Business Bay, ICC Offices and Panchshil Tech Park and one mall - ICC Pavilion.

Hospitality IPOs

In the past 12 months, the Indian primary market has seen three hotel companies go public. Juniper Hotels Ltd raised Rs 1,800 crore in its IPO in February this year. Juniper runs seven hotels under the Hyatt brand with a capacity of 1,836 keys (including 245 serviced apartments).

Also in February, Apeejay Surrendra Park Hotels Limited raised Rs 920 crore in its IPO. The hospitality company operates under five brands - THE Park, THE Park Collection, Zone by The Park, Zone Connect by The Park and Stop by Zone.

In September 2023, SAMHI Hotels Ltd raised Rs 1,370 crore in its IPO. SAMHI has a portfolio of 31 operating hotels comprising 4,801 keys.