Ventive Hospitality Private Limited Set to Launch IPO
Panchshil Realty and Blackstone’s joint venture, Ventive Hospitality Private Limited, is gearing up to launch its Initial Public Offering (IPO) to raise ₹2,000 crores. According to sources familiar with the matter, the company is expected to submit its IPO documents this week, potentially as early as Tuesday, with plans to file the Draft Red Herring Prospectus (DRHP). This move is seen as a strategic step to further expand its footprint in the hospitality sector.
Purpose of Fund Allocation
The proceeds from the IPO will primarily be utilized to enhance Ventive Hospitality’s existing portfolio and to fund new hospitality projects. Notably, the IPO will not involve any secondary sale of shares by its partners, Blackstone or Panchshil. Despite attempts to reach out, there was no response from Panchshil, and Blackstone opted not to comment on the matter.
Upcoming Projects in the Pipeline
| Project Name | Location | Number of Keys | Brand |
|---|---|---|---|
| 167-key hotel | Varanasi | 167 | Marriott |
| Luxury Resort | Sri Lanka | 80 | The Ritz-Carlton Reserve |
| 120-key hotel | Bengaluru (Whitefield) | 120 | Marriott Aloft |
The term “keys” refers to the number of rooms available in a hotel, underscoring the scale of Ventive Hospitality’s ambitious plans.
About Ventive Hospitality Private Limited
Ventive Hospitality started as the hospitality arm of the Panchshil Group and became a joint venture partner with Blackstone in 2017. Currently, Panchshil holds a 60% stake in the company, while Blackstone owns the remaining 40%. Ventive Hospitality manages a diversified portfolio comprising 17 assets, which includes 13 core hotels and four mixed-use properties. The company boasts a total of 2,036 hotel rooms with an additional 367 rooms currently under construction, demonstrating its commitment to growth in the hospitality sector.
Financial and Strategic Management
To facilitate the upcoming IPO, several financial institutions have been entrusted with the management of the offering, including Kotak Mahindra Capital, JM Financial, ICICI Securities, Bank of America, HSBC, Citi, IIFL, and SBICaps. This consortium of financial advisors will guide the process, ensuring that the IPO remains aligned with market expectations and investor interests.
As Ventive Hospitality prepares for this significant milestone, the industry will be closely observing how the funds raised through the IPO will impact its growth trajectory and strategic initiatives. The upcoming projects reflect a strong positioning for the company in the competitive hospitality market, aiming to cater to an increasingly discerning clientele.
