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SubaHotelsLtd IPO

Suba Hotels Ltd
Start Date29-09-2025
Application Timing10am-5pm
Price Range₹105 - ₹111
Min Qty1200
Min. Investment₹133200
Listing Date07-10-2025
Close Date01-10-2025

About Suba Hotels Ltd

Established in October 1997, Suba Hotels Limited is a leading domestic hotel chain in India’s mid-market segment. As of July 2025, the company operates 88 hotels with 4,096 keys across 50 cities, primarily focusing on tier 2 and tier 3 cities. Additionally, 40 hotels are under development, which will add around 1,831 rooms to its portfolio.

The company operates across multiple formats, including upscale, upper-midscale, midscale, and economy hotels. Its diversified business model includes owned, managed, leased/revenue share, and franchised properties. Suba Hotels currently owns hotels in Ahmedabad, Bhuj, Junagadh, Vadodara (Gujarat), and Pithampur (Madhya Pradesh).

The group’s strong network, differentiated operating model, and experienced promoters have enabled it to build a competitive presence in the Indian hospitality market.

Why To Invest in Suba Hotels Ltd

Strong Market Presence: Suba Hotels is among the leading domestic hotel chains in the mid-scale segment with nationwide coverage.

Robust Growth: Revenue increased by 51%, and profit after tax rose by 69% in FY25 compared to FY24.

Diversified Business Model: Operates through owned, managed, leased, and franchised models, ensuring scalability and risk diversification.

Expanding Footprint: With 40 hotels in the pre-opening stage, the company is well-positioned for future growth.

Experienced Promoters: Backed by strong leadership with expertise in hospitality and hotel management.

Healthy Financial Ratios: Strong ROE (31.82%), ROCE (35.55%), and EBITDA margin (29.09%) highlight efficient operations and profitability.

Financial Table
Period Ended 31 Mar 2025 31 Mar 2024 31 Mar 2023
Assets123.04100.0785.23
Total Income79.9853.0035.20
Profit After Tax15.15 8.962.78
EBITDA23.278.7513.87
NET Worth47.6132.3323.46
Reserves and Surplus 30.1727.5718.70
Total Borrowing50.2345.7346.09
Strengths And Risks
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Established Brand with Wide Presence: Suba Hotels is one of India’s leading domestic hotel chains in the mid-scale segment, with operations spread across 50 cities. Its strong brand recall helps it maintain a consistent market presence.
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Ability to Revive Underperforming Hotels: The company has demonstrated expertise in acquiring underperforming hotels and improving their performance through renovation, rebranding, and efficient management practices.
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Strong Distribution and Customer Network: With an established distribution network, Suba Hotels is able to attract a steady flow of customers and build long-term relationships, ensuring revenue stability.
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Consistent Financial Growth: The company has reported significant growth, with a 51% increase in revenue and a 69% rise in profit after tax in FY25, reflecting its operational strength and profitability.
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Experienced Promoters and Management Team: Led by seasoned promoters and a professional management team, Suba Hotels benefits from years of expertise in hospitality and hotel management.
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High Debt-to-Equity Ratio: With a debt-to-equity ratio of 1.06, the company relies significantly on borrowings, which may affect financial flexibility.
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Exposure to Industry Cyclicality: The hospitality sector is cyclical in nature and highly sensitive to economic conditions, seasonal trends, and demand fluctuations.
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Dependence on Expansion Plans: Future growth is closely tied to its expansion strategy. Any delays in project execution or pre-opening hotels could impact revenue projections.
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Intense Competition: The company faces strong competition from both domestic and international hotel chains, which could put pressure on market share and profitability.
FAQs
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