Pride Hotels eyes 4,140 more rooms to touch 7,341 keys; backed by a ₹350–400 crore capex

Satyen Jain, Chief Executive Officer, Pride Hotels Group

Mid-market to upscale hospitality chain Pride Hotels is looking to add nearly 4,140 rooms to its existing operational base of 3,204 keys over the next 12–24 months, potentially taking its combined operational portfolio and pipeline to 7,341 rooms across 90 properties, representing a 129 per cent increase over its current operational inventory. The company is also lining up ₹350–400 crore of capital expenditure over the next two to three years, industry sources familiar with the plans told businessline.

The expansion forms part of Pride’s longer-term ambition to reach 10,000 rooms, including its pipeline, by 2030. The company plans to grow through management contracts, owned-property development, selective leases, and acquisitions.

Satyen Jain, Chief Executive Officer, Pride Hotels Group, said that the company would concentrate on mid-market, upper-mid-market and upscale hospitality rather than compete in the luxury segment.

“We are very clear about our focus,” Jain said, pointing to growing demand from corporate travellers, families, weddings and domestic tourists.

Mid-market strategy

Pride’s Biznotel brand targets room tariffs of ₹3,000–5,000, Pride Premier ₹4,000–7,000 and upscale Pride Plaza approximately ₹6,000–12,000. Pride Elite caters primarily to leisure and pilgrimage destinations.

Despite its growing mid-market network, established upscale hotels remain central to Pride’s earnings. Jain indicated that Pride Plaza contributes a majority of revenue, while the expanding managed-hotel business is expected to generate higher fees as properties mature.

The company’s average daily room rate increased 3.1 per cent to ₹6,773 in FY26, while occupancy improved to 76 per cent from 72.4 per cent and revenue per available room rose 7.6 per cent to ₹5,119.

Under management contracts, property owners finance hotel development and record operating revenue, while Pride earns fees linked to revenue and operating performance. Jain said new managed hotels typically take 18–24 months to stabilise.

New properties and expansion

Pride added 481 operational rooms over the past year, expanding capacity nearly 18 per cent to 3,204 keys across 40 hotels in September 2026, compared with 34 hotels and 2,723 rooms a year earlier.

Its operating managed-room inventory increased 21.4 per cent to 1,927 rooms, while the signed managed-room pipeline expanded 51.2 per cent to 2,268 rooms.

Recent openings include Chhatrapati Sambhajinagar, Alwar, Gandhinagar, Darjeeling, Greater Noida, Himmatnagar, Mandarmani and Shravasti, alongside additional hotels in Indore and Dehradun.

In August, Pride opened its first fully leased hotel, a 141-room property in Indore, under a 25-year agreement. It also plans 163 additional rooms at Nagpur, expected to open in September 2027.

Jain said two suburban Mumbai properties are expected to begin operations within about a year. The company is also exploring Hyderabad, Ayodhya and Varanasi while deepening its presence in eastern and southern markets.

IPO to improve returns

Under its proposed ₹260 crore IPO fresh issue, Pride has earmarked ₹159.68 crore for renovating six owned hotels and ₹40 crore for debt repayment.

Jain said renovations would be undertaken in phases to avoid closing entire properties. Upgrading older rooms allows the company to move them into higher-priced categories, improving room yields.

Revenue growth challenge

Pride’s consolidated revenue from operations increased 6.3 per cent to ₹324.89 crore in FY26 from ₹305.62 crore in FY25, while consolidated profit attributable to shareholders rose 8.4 per cent to ₹98.85 crore from ₹91.20 crore.

Management fees increased 40.6 per cent to ₹10.05 crore but accounted for just 3.1 per cent of operating revenue. Operating cash flow declined to ₹105.59 crore from ₹118.20 crore.

For Pride, the challenge is translating its growing network into higher recurring fees and faster revenue growth while financing expansion and improving returns from established properties.

Published on November 1, 2026