Apeejay Surrendra Park Hotels Ltd. IPO

Among hotel chains with asset ownership, our Company ranks as the eighth largest in India in terms of chain affiliated hotel rooms inventory as of September 30, 2023 (Source: Horwath HTL Report). We operate hospitality assets under our own brands, “THE PARK”, “THE PARK ... Collection”, “Zone by The Park”, “Zone Connect by The Park” and “Stop by Zone”. We have a long-standing expertise of over 55 years in the hospitality business of owning and operating hotels. We operate 30 hotels comprising 7 owned, 3 leased, and 20 managed hotels across luxury boutique upscale brands, and upper midscale category. We have established presence in the retail food and beverage industry through our retail brand ‘Flurys’. Business Models We operate our hotels through a combination of the following: (i) direct ownership of hotel properties, (ii) longterm lease for the land and/or buildings, (iii) operation and management agreements on a contractual basis using our brand on hotels constructed by third parties Read more

Our Company was originally incorporated at Karnataka on November 27, 1987, as Budget Hotels Private Limited, as a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated November 27, 1987 issued by the Registrar of Companies, Bangalore at Karnataka. ... Subsequently, the name of our Company was changed to Budget Hotels Limited pursuant to our Company becoming a public company with effect from October 26, 1990 and noting of such conversion in the certificate of incorporation by Registrar of Companies, Bangalore at Karnataka. Further, pursuant to the Acquisition Agreements, the entire issued and paid up equity share capital of our Company constituting 571,940 equity shares of face value of ? 100 each (“PreScheme Capital”), was acquired by Apeejay Hotels Delhi in two tranches and our Company became the wholly owned subsidiary of Apeejay Hotels Delhi. Subsequently, pursuant to the scheme of amalgamation approved vide orders of the High Court of Madras dated June 13, 2003, High Court of Delhi dated August 6, 2003, and High Court of Karnataka dated September 17, 2003, Apeejay Hotels Delhi, and Gemini Hotels and Holdings Limited (a wholly owned subsidiary of Apeejay Hotels Delhi) were amalgamated with our Company, with the appointed date being April 1, 2001 and effective date being November 28, 2003 (“Effective Date”). As on the Effective Date, (i) the entire Pre-Scheme Capital of our Company held by Apeejay Hotels Delhi stood cancelled; (ii) interse shareholding between Apeejay Hotels Delhi and Gemini Hotels stood cancelled; and (iii) the shares or the share certificates of Apeejay Hotel Delhi in relation to the shares held by its members stood cancelled. Our Company’s equity shares were also sub-divided from face value of ? 100 each to face value of ? 10 each.

Thereafter, to closely identify the association of our Company with the Apeejay Surrendra Group, the name of our Company was changed to Apeejay Surrendra Park Hotels Limited, pursuant to the resolution passed by our Shareholders at their EGM held on March 8, 2004 and the certificate of incorporation pursuant to change of name was issued by the RoC on March 29, 2004.

The hospitality sector in India consists of hotels offering rooms to tourists and business travellers both domestic and international along with restaurants, bars, and banquet facilities for events. The hotels in India are segmented into the Luxury and Upper Upscale Segment, Upscale segment, ... Upper Midscale segment (Up-Mid), Midscale Segment and Economy Segment. These segments are based on intended positioning of the hotels and the room rate structures. Each segment will include entry-level hotels in that segment besides hotels that are more fully of segment standards. The Luxury and Upper Upscale comprises of 5 star, deluxe and luxury hotels followed by Upscale which are moderately priced than top tier hotels and Upper Midscale which are classified as 4 star and sometimes 3 star. The rapid growth in India’s hospitality industry is expected at an overall supply CAGR of 8.6% from September 2023 – FY 27, across all segments. Through FY 2027, about 25% of new supply will be in the Luxury-Upper Upscale segment, 24% and 20% in the Upscale and Upper-Midscale segments respectively and 31% in the Midscale-Economy segment. About 90% of total inventory is controlled by the top 25 chains. (Source: Horwath HTL Report) The Indian food services business comprises of both unorganized and organized players. The unorganized players comprise of local restaurants and roadside eateries. The organized format includes quick service restaurants (QSR) offering fast food products, café chain offering coffee and beverages along with snack eateries, bars/ lounges offer alcohol-based beverages along with full-fledged meals and fine dining outlets. The Indian bakery market is expected to reach approximately ? 1,800-1,850 billion over next five years, by Fiscal 2028, and the Indian café market is expected to grow at 19-21% CAGR during Fiscal 2023- 2028. It presents us with various opportunities to grow our retail food and beverage business across different distribution channels (Source: CRISIL Report). Read more