Apeejay Surrendra Park Hotels IPO

Established Hospitality Brands : Through the strength of their brands including The Park, Flurys, Zen, Someplace Else, Tantra, Roxy, iBar, The Leather Bar, Pasha, Aqua, Lotus, Fire, 601, The Bridge, Aura etc, company has been able to further expand and their hotel portfolio at a CAGR of 21.56%, during last three fiscals.

High Occupancy Rate : Apeejay Surrendra has a strong operating track record of high occupancy and competitive average room rates for their hotel properties during last three Fiscals. They have been able to achieve an average occupancy level of 92% in owned hotels for Fiscal '23. for our owned hotels

Diversified Business: The food, beverage, and entertainment business adds a non-cyclical element to the seasonal and cyclical hospitality industry, thereby providing added stability and resilience to earnings and cash flows.

High Margin Iconic Brand Flury's: The asset-light business model adopted by Flury's provides a diversified, resilient, and scalable business model to leverage on. In fiscal 2022, Flury’s had the highest EBITDA margin of 24.75 % among peers.

Strategic Locations: Company operates 27 hotels across upscale to upper midscale category, with pan-India presence representing 2,111 rooms. They have grown our business geographically across megacities, tourist centres, business parks, and emerging locations.

Property Development: Business is exposed to risks associated with the development of hotel properties and land banks. Any delay in the construction of new hotel buildings or expansion of existing properties may have an adverse effect on business.

Revenue Concentration Risk: A large portion of revenue (approx 75%) is realised from top five owned hotels with THE PARK Kolkata contributing 21% to the total income. Any adverse development affecting these hotels or the regions may adversely affect the business.

Seasonality: Hospitality business is subject to seasonal and cyclical variations that could result in fluctuations in cashflows.