Apeejay Surrendra Park Hotels IPO: The Good and The Bad

About the company

Apeejay Surrendra Park Hotels is a hotel operator. It operates under the brand "The Park" and has a pan-India presence with diverse product offerings, from economy to luxury hotels

IPO details

Post IPO

Financial history

Key ratios

The positives

It is the eighth-largest hotel chain (among hotel chains that own the hotels they operate), comprising about 1,300 rooms.

The positives

It has a diversified pan-India presence with over 30 hotels across 20 cities.

The negatives

History of breaching financial covenants. As of FY23, it has breached covenants in financial agreements of around Rs 4,500 crore.

The negatives

Revenue concentration. Around 75 per cent of its FY23 revenue came from its top five hotels.

Risk report

Is the company's net debt-to-equity ratio less than one? No. Its net debt-to-equity ratio, as of September 2023, was 1.08 times.

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