Apeejay Surrendra Park Hotels (MAINBOARD)

Feb 5, 2024 - Feb 7, 2024

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Founded in 1987, Apeejay Surrendra Park Hotels Limited is a renowned player in the hospitality industry, distinguished by its iconic brand portfolio, including "THE PARK," "THE PARK Collection," "Zone by The Park," "Zone Connect by The Park," and "Stop by Zone." Additionally, the company extends its presence into the retail food and beverage sector with its acclaimed brand, 'Flurys.'

As of March 31, 2023, Apeejay Surrendra Park Hotels Limited operates a total of 80 restaurants, nightclubs, and bars, offering a diverse array of culinary experiences to its patrons.

Presently, the company manages a network of 27 hotels spanning various categories such as luxury boutique, upscale, and upper midscale. These hotels are strategically located across key cities in India, including Kolkata, New Delhi, Chennai, Hyderabad, Bangalore, Mumbai, Coimbatore, Indore, Goa, Jaipur, Jodhpur, Jammu, Navi Mumbai, Visakhapatnam, Port Blair, and Pathankot, collectively offering a total of 2,111 rooms as of August 2023.

Under its culinary umbrella, Apeejay Surrendra Park Hotels Limited owns and operates restaurants branded as Zen, Lotus, Aish, Saffron, Fire, Italia, 601, The Bridge, The Street, Verandah, Vista, Bamboo Bay, Monsoon, Mist, Love, and Bazaar.

 

With a dedicated workforce of 1,923 employees as of June 2023, Apeejay Surrendra Park Hotels Limited remains committed to delivering exceptional hospitality experiences across its diversified portfolio of brands and establishments.

Apeejay Surrendra Park IPO Lead Manager(s)

• Jm Financial Limited
• ICICI Securities Limited
• Axis Capital Limited

Company Financials

Period	30 Sep 2023	Mar 2023	Mar 2022	Mar 2021
Assets	1,382.51	1,361.79	1,275.18	1,280.34
Revenue	272.31	524.43	267.83	190.29
Profit	22.95	48.06	-28.20	-75.88
Net Worth	578.71	555.68	508.51	536.28
Reserves	561.24	538.22	491.05	518.81
Borrowing	597.09	566.88	622.68	593.44
Amount in ₹ Crore

 

 

Strengths:

1.      With a presence across India, the company's portfolio includes a mix of owned, leased, and managed hotels, providing a broad reach and diverse revenue streams.

2.      A robust financial and operational track record underscores the company's stability and competence in managing its business operations efficiently.

3.      Significant contributions from Food & Beverage (F&B) and Entertainment segments contribute to steady and reliable earnings, complementing the core hotel business.

4.      The "Flurys" brand stands out with a history of profitability and impressive EBITDA margins, showcasing the company's ability to create successful and lucrative brands within its portfolio.

5.      A dedicated and experienced leadership team upholds high standards of corporate governance, ensuring sound decision-making and long-term sustainability.

6.      The company has demonstrated its ability to establish successful hospitality brands by focusing on product innovation and delivering excellent service, resulting in a diversified and appealing offering for customers.

7.      The company boasts consistently high occupancy rates and Revenue per Available Room (REVPAR), indicating strong demand and effective revenue management practices.

 

Risk

1.      Historical restated losses raise concerns about the company's ability to consistently generate profits and maintain financial stability.

2.      Mortgages on certain hotel properties, with title deeds not held in the company's name, introduce potential complexities and disputes with lenders, impacting operations and ownership rights.

3.      Delays in the development of hotel properties and land banks pose risks to revenue projections and may lead to increased project costs.

4.      A considerable portion of revenue derived from a few top-performing hotels increases vulnerability to risks associated with those specific properties, such as regulatory changes or competitive pressures.

5.      Negative cash flows indicate challenges in generating sufficient operational cash to cover expenses and investments, potentially straining the company's financial health.

6.      Dependency on revenue from corporate and leisure customers exposes the company to fluctuations in demand and economic conditions affecting these segments.

 

7.      High working capital requirements may strain liquidity and increase financing costs, necessitating effective management strategies to mitigate risks.

Apeejay Surrendra Park IPO Lead Manager(s)

• Jm Financial Limited
• ICICI Securities Limited
• Axis Capital Limited

Link Intime India Private Ltd

Phone: +91-22-4918 6270
Email: parkhotels.ipo@linkintime.co.in
Website: https://linkintime.co.in/initial_offer/public-issues.html