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What Park Motels’ IPO on Feb 5 Says About Its Growth Plans

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Apeejay Surendra Park Motels, generally generally known as Park Motels, is ready to have its IPO on February 5. The group presently operates 30 motels in 20 cities throughout India, with 2,298 rooms. Via a strategic mixture of possession, administration contracts and leased properties, the group goals to open 56 lodge by 2026.

The Manufacturers:

The Park is the group’s luxurious boutique model. There are eight properties with a complete of 1,201 keys in Kolkata, New Delhi, Chennai, Hyderabad, Bangalore, Navi Mumbai, Vishakhapatnam, and Indore.

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The Park Assortment contains small luxurious properties. The group presently operates 64 rooms on this class unfold throughout three properties — The Park Calangute Goa, The Park Baga Goa and The Denmark Tavern.

Zone by The Park is positioned on the higher midscale stage and is principally positioned in Tier 2 and Tier 3 cities. The model presently manages and function 11 motels with 624 rooms with presence in Coimbatore, Jaipur, Chennai, Bangalore, Jodhpur, Jammu, Phalodi, Pathankot, Gopalpur, Dimapur, and Kolkata.

Zone Join by The Park can be an higher mid-scale model, the group presently manages and operates 8 motels with 409 rooms with presence in Goa, Delhi, Coimbatore, Mussoorie, Indore, Udaipur and Port Blair.

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The recently-launched Cease by Zone is an financial system motel model and is presently in two areas in West Bengal — Nandakumar and Simulbari. The group mentioned it has presently leased 8 extra properties in Kolkata for improvement of roadside motels.

Throughout a digital press convention held on Wednesday, Park Motels shared key insights into its strengths and strategic positioning within the hospitality sector. Right here’s what we came upon:

Occupancy and Income Management: The group boasts of industry-leading occupancy charges, reaching a 92%, a place maintained in the course of the first half of the present monetary yr, mentioned Vijay Dewan, managing director at Apeejay Surendra Park Motels. Even amidst the challenges posed by the 2 preliminary years of Covid, the lodge group sustained occupancy charges at 67% and 79%, outperforming {industry} requirements.

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Dewan mentioned the corporate maintains a 30% premium over opponents, attributed partially to a excessive proportion of repeat clients, starting from 25% to 30%.

Income and Monetary Efficiency: Pushed by sturdy occupancy and robust efficiency in meals and beverage companies, The Park recorded income of INR 5.2 billion ($63 million) final yr, marking a 96% enchancment over the earlier yr and an 18% development in comparison with the pre-pandemic yr. EBIDTA reached INR 1.7 billion ($20 million), a 13% enchancment from pre-pandemic ranges.

Demand-Provide Dynamics: With a staggering scarcity of lodge rooms nationwide, India presently has 178,000 rooms within the branded class, considerably lagging behind Shanghai’s two lakh rooms. The availability is projected to develop at 7.5%, whereas demand fueled by a rising center class is anticipated to surge at a fee of 10.6%, creating a considerable demand-supply mismatch that positions the group favorably for future development, Dewan mentioned.

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Strategic Growth Plans: Park Motels goals to succeed in a complete of 56 motels by 2026, increasing its administration contracts from roughly 1,000 rooms to 2,300 and on the possession aspect rising from 1,000 rooms to just about 1,900. This enlargement consists of the event of 5 new properties, including a complete of 630 rooms, along with a 200-room property in Jaipur.

“Our improvement pipeline for motels consists of 1,895 rooms throughout 21 motels and eight motels,” reads the pink herring prospectus that the corporate filed with the Indian capital market regulator Securities and Change Board of India (SEBI).

The motels within the pipeline embrace 15 Zone by the Park properties in in style vacationer locations comparable to Darjeeling, Siliguri, Goa, Srinagar, Kasauli, Alibag Manali and Landsdowne.

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India Builds UDAN Connectivity

India has to date awarded 76 routes beneath the UDAN community, 40 of that are already operational, Civil Aviation Minister, Jyotiraditya Scindia, introduced this whereas inaugurating flight companies between Dehradun and Pithoragarh.

Scindia additionally highlighted ongoing work at varied heliports, together with Almora, Chinyalisaur, Gauchar, Sahastradhara, New Tehri, and Haldwani.

As a part of UDAN 5.1, Scindia disclosed plans for the event of 5 extra heliports — Bageshwar, Champawat, Lansdowne, Munsiyari, and Triyogi Narayan. He mentioned improvement work for these heliports is anticipated to begin quickly.

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Offering perception into the progress at Dehradun airport, Scindia shared that the brand new terminal Constructing, developed at a price of INR 4.5 billion could have the capability to deal with 1,800 passengers throughout peak hours, accommodating 3.6 million passengers yearly. He emphasised the substantial development in air operations, noting a 144% enhance from 86 flights per week in 2014 to the present 210 flights.

India Arrivals to South Africa Attain 82% of Pre-Covid Ranges

Indian arrivals to South Africa recovered to 82% of pre-pandemic ranges, Neliswa Nkani, hub head — Center East, India and Southeast Asia of South African Tourism mentioned on Wednesday.

“The overwhelming response not solely underscores our dedication to the Indian market but additionally inches us nearer in direction of our targets of surpassing pre-pandemic arrival figures,” Nkani mentioned.

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Desperate to proceed constructing on the sturdy traveller momentum, South African Tourism has introduced the 2024 version of its annual India roadshow.

Debuting in Jaipur, the roadshow scheduled from February 12-16, will subsequently tour different Indian cities, together with Delhi, Ahmedabad, Bengaluru and Mumbai.

India holds a strategic place as one of many prime three focus markets for South African Tourism globally. Owing to the latest uptick in its urge for food for outbound tourism, India is not possible to miss for any tourism board, South African Tourism mentioned in a press assertion.

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