Suba Hotels Ltd.
SUBASME
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Overview
Suba Hotels Limited is one of India's prominent domestic hotel chains operating in the mid-market sector. As of July 2025, the company manages a portfolio of 88 operational hotels with 4,096 keys across more than 50 cities, with a significant presence in emerging tier 2 and 3 markets. Catering to business, leisure, and religious tourism, Suba Hotels employs a diverse business model including owned, managed, revenue share, lease, and franchised properties. The company has expanded through organic growth and strategic acquisitions, including becoming the master franchisee for Choice Hotels' Clarion, Quality, and Comfort brands in India.
Opening Date
Sep 29, 2025
Closing Date
Oct 01, 2025
Listing Date
Oct 07, 2025
IPO Type
SME
IPO Status
Closed
Issue Size
75.47 Cr
Fresh Issue
75.47 Cr
Offer for Sale
—
Price Band
₹105 - ₹111
Lot Size
1200
IPO Timeline
Financials
Revenue
Profit After Tax (PAT)
IPO Objective
The main objectives of the issue are to utilize the Net Proceeds towards funding the following objects:
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Funding capital expenditure for the upgradation and last-mile completion of hotel premises, including civil and interior work for the Pithampur property to make 38 additional rooms, a spa, and banquet hall operational.
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Financing the renovation, refurbishment, and modernization of existing owned hotel properties in Vadodara, Ahmedabad, Junagarh, and Bhuj to upgrade facilities, redesign interiors, and improve guest experiences.
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Providing last-mile funding for hotel premises which operate on a Revenue share & Lease basis, with a specific focus on properties in Bangalore.
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To meet general corporate purposes, which may include funding growth opportunities, servicing business needs, and covering corporate contingencies, not exceeding 25% of the Gross Proceeds.
Key Performance Indicator
P/E Ratio
0.62
EPS
0.22
ROE
31.82%
ROCE
35.55%
RONW
31.82%
Debt to Equity Ratio
1.06
PAT Margin
18.94%
EBITDA Margin
29.09%
P/B
4.07
SWOT Analysis
Strengths
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One of India's leading domestic hotel chains in the mid-scale sector with a differentiated, asset-light business model.
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Wide geographical coverage with 88 hotels across 50+ cities, with a strong presence in emerging tier 2 and 3 markets.
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Established distribution network combining a dedicated offline sales team and a strong online presence through its brand website and partnerships with major OTAs.
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Experienced promoters and management team with extensive knowledge and a successful track record in the hospitality industry.
Weaknesses
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Significant reliance on managed, leased, and franchised models, leading to less control over property standards compared to owned hotels.
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Dependence on the financial stability of third-party hotel owners for expansion and maintenance of brand standards.
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Potential for brand dilution due to rapid expansion across different segments and geographies under various brand names.
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A portion of the hotel portfolio consists of older properties requiring significant capital expenditure for renovation and modernization.
Opportunities
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Investing in and providing last-mile funding for hotel projects that were stalled due to financial constraints.
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Identifying and renovating distressed or underperforming hotel properties in strategic locations to enhance their value and performance.
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Expanding into untapped Tier 2 and Tier 3 cities, leveraging government focus on infrastructure development and tourism.
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Enhancing customer loyalty and direct bookings through the deployment of a new loyalty program and strengthening digital marketing.
Threats
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Intense competition from other domestic and international hotel chains, as well as unorganized and independent hotels.
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Economic slowdowns, financial instability, or health crises that can significantly reduce travel demand for business and leisure.
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Changes in government regulations, licensing requirements, and tax policies related to the hospitality industry.
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Dependence on online travel agents (OTAs) for bookings, which involves paying commissions and having less control over customer relationships.
Subscription Rate
Frequently Asked Questions about Suba Hotels Ltd.
Suba Hotels Limited is one of India's prominent domestic hotel chains operating in the mid-market sector. As of July 2025, the company manages a portfolio of 88 operational hotels with 4,096 keys across more than 50 cities, with a significant presence in emerging tier 2 and 3 markets. Catering to business, leisure, and religious tourism, Suba Hotels employs a diverse business model including owned, managed, revenue share, lease, and franchised properties. The company has expanded through organic growth and strategic acquisitions, including becoming the master franchisee for Choice Hotels' Clarion, Quality, and Comfort brands in India.
The Suba Hotels Ltd. IPO is scheduled to open for subscription on Sep 29, 2025 and close on Oct 01, 2025. Investors can apply for shares during this period through eligible platforms.
The price band for the Suba Hotels Ltd. IPO is ₹105 to ₹111. Investors can place bids within this range once the issue opens.
The minimum lot size for the Suba Hotels Ltd. IPO is 1200 shares. The minimum investment amount ₹1,33,200.
The total issue size of the Suba Hotels Ltd. IPO is approximately ₹75.47. Issue size represents the total value of shares offered to the public.
As per the latest available information, the Suba Hotels Ltd. IPO has been subscribed 0.62 times. Subscription levels can change significantly during the offer period.
The Grey Market Premium (GMP) for the Suba Hotels Ltd. IPO is not available as of now. GMP reflects unofficial market sentiment and should not be considered a guarantee of listing performance.
The shares of Suba Hotels Ltd. are expected to list on stock exchanges on Oct 07, 2025, subject to completion of the allotment process and regulatory approvals.
The net proceeds from the Suba Hotels Ltd. IPO are proposed to be used for The main objectives of the issue are to utilize the Net Proceeds towards funding the following objects:, Funding capital expenditure for the upgradation and last-mile completion of hotel premises, including civil and interior work for the Pithampur property to make 38 additional rooms, a spa, and banquet hall operational., Financing the renovation, refurbishment, and modernization of existing owned hotel properties in Vadodara, Ahmedabad, Junagarh, and Bhuj to upgrade facilities, redesign interiors, and improve guest experiences., Providing last-mile funding for hotel premises which operate on a Revenue share & Lease basis, with a specific focus on properties in Bangalore., To meet general corporate purposes, which may include funding growth opportunities, servicing business needs, and covering corporate contingencies, not exceeding 25% of the Gross Proceeds.
Before applying for the Suba Hotels Ltd. IPO, investors generally review the company’s business model, financial performance, valuation, industry outlook, and risk factors mentioned in the offer document.
