Park Hotels gets parking

Apeejay Surrendra Park Hotels or Park Hotels as it is recognised is a new listing today. As against the IPO price of Rs.155, the stock got listed on the BSE at Rs.187, even went up to Rs.188.90 and is now trading at Rs.177 levels, nevertheless over the IPO price.

The IPO had met with a good response – overall subscribing 62.9x, with QIBs at 79,23x, HNI at 55.25 and Retail at 31.96x.

The company operates 30 hotels aggregating 2,298 keys (1,101 keys on 7 owned hotels) across 20 Indian cities, operating under brands The Park, The Park Collection, Zone, Stop by Zone. It also runs 73 food and beverage (F&B) retail outlets under ‘Flurys’ brand in West Bengal, Mumbai and Delhi.

Our conclusion in the IPO Analysis - Industry tailwinds, industry-leading occupancy, near debt free operations post IPO combined with inexpensive valuations, make the IPO a subscribe, especially with a short term view, when most gains are likely to be priced in.