© Reuters.
MUMBAI – Apeejay Surendra Park Lodges, presently the eighth-largest resort chain in India by asset possession, has unveiled bold plans to double its variety of rooms to three,996 inside the subsequent 5 years. The enlargement will likely be pushed by an asset-light technique that focuses on rising the proportion of managed rooms to over half by the fiscal yr 2028. This transfer is a part of a broader pattern amongst resort operators to develop their footprint by means of operation and administration agreements quite than direct funding.
The corporate, which operates a spread of manufacturers together with “Zone by The Park” and “Zone Connect by The Park,” has skilled a big rebound within the fiscal yr 2023. It reported a RevPAR (Income Per Out there Room) of Rs 5,571 and an occupancy price of practically full capability at 92%. This restoration is especially noteworthy given the challenges confronted by the hospitality trade lately.
A key contributor to Park Lodges’ income has been its meals and beverage sector. For 3 consecutive years, modern shops have performed a crucial position, accounting for over 40% of whole revenues. This success factors to the corporate’s means to diversify its earnings streams and improve its choices to visitors.
Consistent with these progress initiatives, Park Lodges is getting ready to launch an Preliminary Public Providing (IPO) price Rs 650 crore. The first goal of this public providing is to cut back debt, positioning the corporate for stronger monetary well being. The IPO may also help the promotion of Park Lodges’ high-quality and diversified portfolio, as highlighted by Priya Paul, a key determine on the firm.
This strategic transfer underscores Park Lodges’ dedication to scaling up operations whereas sustaining monetary prudence by means of an asset-light mannequin. The enlargement plan and upcoming IPO are set to mark a brand new part of progress for the resort chain in India’s aggressive hospitality sector.
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