Apeejay Surrendra Park IPO

Apeejay Surrendra Park Hotels is a hotel chain in India that operates a portfolio of hospitality assets. The company was established in 1987 and its offerings range from luxury boutique accommodations under the “THE PARK” brand to the “THE PARK Collection.” The company also serves the upper-midscale market through “Zone by The Park” and “Zone Connect by The Park.”

In the economy sector, the company runs motel brand “Stop by Zone.” Beyond the hotel industry, Apeejay Surrendra is also into the retail food and beverage sector with “Flurys,”. The company operated 80 restaurants, nightclubs and bars across India as of March 31, 2023.

Apeejay Surrendra Park IPO Strengths

• The company has successfully created hospitality brands through product innovation and service excellence to attract customers through a diversified and holistic offering.
• It has a Pan India portfolio of owned, leased and managed hotels.
• The company enjoys a high occupancy rate and REVPAR.
• A strong financial and operational track record.
• It also has High F&B and Entertainment contributions which adds to stable and non-cyclical earnings while complementing the hotel business.
• Its “Flurys” brand has a successful and profitable track record of industry-leading EBITDA margins.
• The company has a dedicated and experienced leadership team with high standards of corporate governance.

Apeejay Surrendra Park IPO Risks

• The company has risks associated with the delay in the development of their hotel properties and land banks.
• It has reported restated losses in the past.
• A few of the hotels are mortgaged with lenders, out of which the title deeds of certain immovable properties are not held in the name of the Company.
• A big portion of revenues comes from corporate accounts and from leisure customers.
• A substantial portion of revenue from the top five hotels.
• The company has reported negative cash flows.
• High working capital requirements.