Suba Hotels Limited Announces Opening of Initial Public Offering (IPO) on September 29, 2025

Mumbai, September 23, 2025 – Suba Hotels Limited, one of India’s leading domestic hotel chains in the mid-market hospitality segment, announced the launch of its Initial Public Offering (IPO), which is set to open on Monday, September 29, 2025, and will close on Wednesday, October 1, 2025.

The Company operates across upscale, upper-midscale, midscale, and economy hotel formats, with a strong presence in Tier 2 and Tier 3 cities. As of July 2025, Suba had 88 operational hotels with 4,096 keys across 50+ cities, along with 40 upcoming properties comprising 1,831 rooms. Suba’s asset-light business model spans owned, managed, revenue-share, leased, and franchised hotels, and is further strengthened by its exclusive master franchise rights for Choice Hotels’ international brands - Comfort, Clarion, and Quality in India.

The Company intends to utilize the IPO proceeds towards funding capital expenditure requirements for upgrades and last-mile funding of hotel premises and general corporate purposes, enabling further scale-up in high-potential domestic and international markets. 

IPO Details

· Issue Size: Up to 67,99,200 equity shares of face value ₹10 each

· Total Issue Size: ₹75.47 crore (at upper price band)

· Price Band: ₹105 – ₹111 per equity share

· Post-Issue Market Capitalization: ₹269.12 crore (at upper price band)

· Lot Size: 1,200 equity shares

· Listing Platform: NSE Emerge 

IPO Timeline

· Anchor Investor Bidding Date: Friday, September 26, 2025

· Offer Opens: Monday, September 29, 2025

· Offer Closes: Wednesday, October 1, 2025

· Listing Date: Tuesday, October 7, 2025*

Share Allocation

· Qualified Institutional Buyers (QIBs): Up to 50% of Net Issue (including Anchor Investors, up to 60% discretionary allocation)

· Non-Institutional Investors (NII): Not less than 15% of Net Issue

· Retail Individual Investors (RII): Not less than 35% of Net Issue

· Market Maker Reservation: 3,40,800 equity shares

Utilisation of Net Proceeds

· Funding Capital Expenditure Requirements towards upgradation and last-mile funding of hotel Premises - ₹ 5,347.56 lakhs

· General Corporate Purposes

Offer Intermediaries

· Book Running Lead Manager: Unistone Capital Private Limited

· Registrar to the Offer: Bigshare Services Private Limited

Management Commentary

“Over the last two decades, we have built Suba into a trusted mid-market hospitality brand with a diversified portfolio across India’s key business and leisure hubs. With our asset-light model, global brand partnerships, and expansion into Tier 2 and Tier 3 cities, we are uniquely positioned for sustainable growth. The IPO will help us strengthen our balance sheet and accelerate our expansion plans.”

Mansur Mehta, Chairman and Managing Director of Suba Hotels Limited,

"At Suba Hotels, our vision is to create a hospitality ecosystem that balances growth, innovation, and guest delight. With a strong pipeline of properties, focused investments in technology and loyalty programs, and a proven model across owned, leased, and managed formats, we are building scale with sustainability. This IPO marks not just a milestone for our company but also a commitment to our stakeholders to deliver consistent value while strengthening Suba’s position as one of India’s most trusted mid-market hospitality brands."

Mubeen Mehta, Chief Executive Officer, Suba Hotels Limited,

“We are proud to partner with Suba Hotels Limited for their IPO journey. Suba Hotels is well-placed to capture India’s rising hospitality demand, especially in underserved Tier 2 and Tier 3 markets. Its strong multi-brand portfolio, proven ability to acquire and turnaround assets, and strategic international tie-ups make this IPO an attractive opportunity for investors.”

Brijesh Parekh, Founder of Unistone Capital Private Limited,

About Suba Hotels Limited

Incorporated in 1997, Suba Hotels Limited is a diversified hospitality company with operations across 88 hotels and 4,096 keys, spread across 50+ cities in India and overseas. The Company operates multiple brands, including Suba, Click, GenX, RnB, and international brands like Clarion, Comfort Inn, and Quality Inn under the exclusive master franchise agreement with Choice Hotels. Suba Hotels caters to a wide customer base spanning business, leisure, and religious tourism.

The Company has a proven track record of acquiring, upgrading, and profitably operating mid-market hotels through its asset-light model, while delivering attractive returns and exceptional guest experiences.

In FY25, the company achieved a Revenue of ₹7,924.32 lakhs, EBITDA of ₹2,327.12 lakhs with an EBITDA Margin of 29.09% and PAT of ₹1,515.14 lakhs with a PAT Margin of 18.94%.

Disclaimer:

Certain statements in this document that are not historical facts are forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.