Pride Hotels, a long-established Indian hospitality chain, is preparing to enter public markets as it targets an initial public offering by March 2026. The Pune-based company has already filed its preliminary documents with regulators and is awaiting approval to proceed, positioning the IPO as a key step in its next phase of growth.
The planned listing is intended to support the modernization of existing properties, reduce debt, and strengthen the company’s balance sheet amid an increasingly competitive hotel landscape.
The proposed IPO structure includes a fresh issue of equity shares worth ₹260 crore, along with an offer for sale of 3.92 crore shares by existing shareholders. According to company leadership, the fresh capital raised will play a central role in upgrading Pride Hotels’ owned portfolio, while also providing financial flexibility to support ongoing expansion. As of March 2025, the company’s total borrowings stood at ₹65 crore, and a portion of the IPO proceeds has been earmarked specifically for debt repayment.
Renovation Plans and Asset Strategy
A significant share of the fresh issue proceeds, nearly ₹160 crore, will be directed toward renovation, refurbishment, and modernization of Pride Hotels’ owned properties. These upgrades are planned across six of the company’s seven owned hotels, located in major urban centers including New Delhi, Ahmedabad, Kolkata, Bengaluru, Pune, and Chennai.
The renovation program is expected to be executed over a period of 12 to 27 months, with the goal of enhancing guest experience, improving operational efficiency, and maintaining competitiveness in key business markets.
Founded almost four decades ago, Pride Hotels operates under the “Pride Hotels and Resorts” brand and currently manages a portfolio of 34 hotels. This includes seven owned properties and 27 managed hotels, reflecting a growing emphasis on an asset-light operating model. Management has highlighted that while the company remains open to selectively acquiring owned assets with turnaround potential, future growth will largely be driven by management contracts with third-party owners.
Expansion remains a core pillar of Pride Hotels’ strategy. The company has expanded from 19 hotels in 2019 to 34 today and has a pipeline of 32 additional properties expected to open over the next two to three years. Of these, 21 hotels are currently under development, representing approximately 1,500 rooms across 19 locations. The pipeline includes a mix of business hubs, leisure destinations, and pilgrimage centers such as Aurangabad, Nainital, Amritsar, Alwar, Ayodhya, and Palitana.
Financial performance has also strengthened, supporting the timing of a potential IPO. Pride Hotels reported a profit after tax of ₹83.5 crore in FY25, up from ₹66 crore the previous year, while revenues rose to ₹305.62 crore from ₹270 crore. These gains reflect both higher occupancy levels and improved operating leverage across the portfolio.
The broader industry outlook remains favorable, with India’s hospitality sector projected to add substantial new supply over the next decade, particularly in Tier 2 and Tier 3 cities. While this expansion is expected to intensify competition, Pride Hotels appears to be positioning itself to benefit from rising domestic travel demand, a diversified geographic presence, and a more modernized hotel offering as it moves toward a public listing.
