Apeejay Surrendra Park Hotels Ltd IPO

Apeejay Surrendra Park Hotels Limited was originally incorporated at Karnataka on November 27, 1987, as Budget Hotels Private Limited, as a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated November 27, 1987 issued by the Registrar of Companies, Bangalore at Karnataka. Subsequently, the name of the Company was changed to Budget Hotels Limited pursuant to the Company becoming a public company with effect from October 26, 1990 and noting of such conversion in the certificate of incorporation by Registrar of Companies, Bangalore at Karnataka. Further, pursuant to the Acquisition Agreements, the entire issued and paid-up equity share capital of the Company constituting 571,940 equity shares of face value of Rs. 100 each, was acquired by Apeejay Hotels Delhi in two tranches and the Company became the wholly owned subsidiary of Apeejay Hotels Delhi. Subsequently, pursuant to the scheme of amalgamation approved vide orders of the High Court of Madras dated June 13, 2003, High Court of Delhi dated August 6, 2003, and High Court of Karnataka dated September 17, 2003, Apeejay Hotels Delhi, and Gemini Hotels and Holdings Limited (a wholly owned subsidiary of Apeejay Hotels Delhi) were amalgamated with the Company, with the appointed date being April 1, 2001. Thereafter, to closely identify the association of the Company with the Apeejay Surrendra Group, the name of the Company was changed from Budget Hotels Limited to Apeejay Surrendra Park Hotels Limited, pursuant to the resolution passed by its Shareholders at their EGM held on March 8, 2004 and the certificate of incorporation pursuant to change of name was issued by the RoC on March 29, 2004. Further, pursuant to its Shareholders' resolution dated November 30, 2016 and order dated June 22, 2017 passed by the Regional Director, South East Region, Hyderabad, its registered office was shifted from the State of Karnataka to State of West Bengal.

The hospitality sector in India consists of hotels offering rooms to tourists and business travellers both domestic and international along with restaurants, bars, and banquet facilities for events. The hotels in India are segmented into the Luxury and Upper Upscale Segment, Upscale segment, Upper Midscale segment (Up-Mid), Midscale Segment and Economy Segment. These segments are based on intended positioning of the hotels and the room rate structures. Each segment will include entry-level hotels in that segment besides hotels that are more fully of segment standards. The Luxury and Upper Upscale comprises of 5 star, deluxe and luxury hotels followed by Upscale which are moderately priced than top tier hotels and Upper Midscale which are classified as 4 star and sometimes 3 star. The rapid growth in India's hospitality industry is expected at an overall supply CAGR of 8.6% from September 2023 - FY 27, across all segments. Through FY 2027, about 25% of new supply will be in the Luxury-Upper Upscale segment, 24% and 20% in the Upscale and Upper-Midscale segments respectively and 31% in the Midscale-Economy segment. About 90% of total inventory is controlled by the top 25 chains. The Indian food services business comprises of both unorganized and organized players. The unorganized players comprise of local restaurants and roadside eateries. The organized format includes quick service restaurants (QSR) offering fast food products, caf' chain offering coffee and beverages along with snack eateries, bars/ lounges offer alcohol-based beverages along with full-fledged meals and fine dining outlets. The Indian bakery market is expected to reach approximately Rs. 1,800-1,850 billion over next five years, by Fiscal 2028, and the Indian caf' market is expected to grow at 19-21% CAGR during Fiscal 2023- 2028. It presents to the company with various opportunities to grow its retail food and beverage business across different distribution channels.

Among hotel chains with asset ownership, the Company ranks as the eighth largest in India in terms of chain affiliated hotel rooms inventory as of September 30, 2023. The Company operates hospitality assets under its own brands, THE PARK, THE PARK Collection, Zone by The Park, Zone Connect by The Park and Stop by Zone. The Company has a long-standing expertise of over 55 years in the hospitality business of owning and operating hotels. The Company operates 30 hotels comprising 7 owned, 3 leased, and 20 managed hotels across luxury boutique upscale brands, and upper midscale category. The Company has established presence in the retail food and beverage industry through its retail brand `Flurys'.