MUMBAI - Apeejay Surendra Park Hotels, currently the eighth-largest hotel chain in India by asset ownership, has unveiled ambitious plans to double its number of rooms to 3,996 within the next five years. The expansion will be driven by an asset-light strategy that focuses on increasing the proportion of managed rooms to over half by the fiscal year 2028. This move is part of a broader trend among hotel operators to grow their footprint through operation and management agreements rather than direct investment.
The company, which operates a range of brands including "Zone by The Park" and "Zone Connect by The Park," has experienced a significant rebound in the fiscal year 2023. It reported a RevPAR (Revenue Per Available Room) of Rs 5,571 and an occupancy rate of nearly full capacity at 92%. This recovery is particularly noteworthy given the challenges faced by the hospitality industry in recent years.
A key contributor to Park Hotels' revenue has been its food and beverage sector. For three consecutive years, innovative outlets have played a critical role, accounting for over 40% of total revenues. This success points to the company's ability to diversify its income streams and enhance its offerings to guests.
In line with these growth initiatives, Park Hotels is preparing to launch an Initial Public Offering (IPO) worth Rs 650 crore. The primary objective of this public offering is to reduce debt, positioning the company for stronger financial health. The IPO will also support the promotion of Park Hotels' high-quality and diversified portfolio, as highlighted by Priya Paul, a key figure at the company.
This strategic move underscores Park Hotels' commitment to scaling up operations while maintaining financial prudence through an asset-light model. The expansion plan and upcoming IPO are set to mark a new phase of growth for the hotel chain in India's competitive hospitality sector.
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