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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
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.
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
One of India's leading domestic hotel chains in the mid-scale sector with a differentiated, asset-light business model.
Wide geographical coverage with 88 hotels across 50+ cities, with a strong presence in emerging tier 2 and 3 markets.
Established distribution network combining a dedicated offline sales team and a strong online presence through its brand website and partnerships with major OTAs.
Experienced promoters and management team with extensive knowledge and a successful track record in the hospitality industry.
Significant reliance on managed, leased, and franchised models, leading to less control over property standards compared to owned hotels.
Dependence on the financial stability of third-party hotel owners for expansion and maintenance of brand standards.
Potential for brand dilution due to rapid expansion across different segments and geographies under various brand names.
A portion of the hotel portfolio consists of older properties requiring significant capital expenditure for renovation and modernization.
Investing in and providing last-mile funding for hotel projects that were stalled due to financial constraints.
Identifying and renovating distressed or underperforming hotel properties in strategic locations to enhance their value and performance.
Expanding into untapped Tier 2 and Tier 3 cities, leveraging government focus on infrastructure development and tourism.
Enhancing customer loyalty and direct bookings through the deployment of a new loyalty program and strengthening digital marketing.
Intense competition from other domestic and international hotel chains, as well as unorganized and independent hotels.
Economic slowdowns, financial instability, or health crises that can significantly reduce travel demand for business and leisure.
Changes in government regulations, licensing requirements, and tax policies related to the hospitality industry.
Dependence on online travel agents (OTAs) for bookings, which involves paying commissions and having less control over customer relationships.
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