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Suba Hotels Limited is operating in the Hotels and Resorts Sector with 88 operational hotels as of July 2025 across over 50 cities in India. From FY16 to FY24, domestic and international passenger traffic grew at CAGRs of 6.86% and 2.72% respectively, with increases of 13.5% in FY24 in domestic (306.79 million) and 22.3% in international traffic (69.64 million).
The Company's growth is driven by its rapid expansion across metros and tier II/III cities, with managed and franchise properties, and a diversified brand portfolio including Suba, Click, and Choice Hotels (Comfort Inn, Quality Inn, Clarion). It leverages technology like cloud-based PMS and e-commerce platforms to boost efficiency and direct bookings, while strategic acquisitions (like 1589 Hotels) and entry into leisure and offbeat destinations enhance scale and geographic reach. Rising demand for domestic travel, non-room revenues from banquets/F&B, and strong brand partnerships further support its growth trajectory.
| Revenue | ₹52.28 cr | ₹79.24 cr (+51.57%) | |
| PAT | ₹8.95 cr | ₹15.15 cr (+69.27%) | |
| PAT Margin | 17.12 % | 19.12 % (+11.68%) | |
| EBITDA | ₹13.87 cr | ₹23.80 cr (+71.59%) | |
| EBITDA Margin | 26.53 % | 30.04 % (+13.23%) | |
| ROE | 27.69 % | 31.83 % (+14.95%) | |
| ROCE | 26.80 % | 35.55 % (+32.65%) | |
| D/E | 0.38 | 1.06 (+178.95%) |
The Company is diversified across premium, mid-scale, and budget segments through brands like Suba, Clarion, Quality Inn, Comfort Inn, and Click Hotels. It operates via owned, leased, managed, and franchise models, while also earning from banquets, F&B, and other services, ensuring varied revenue streams and broad market reach.
PE Ratio: 17.76x Average Sector PE Ratio: 20.33x
| QIB Shares Offered: | 1636800 |
| - Anchor Investor Shares Offered: | 340800 |
| − QIB (Ex. Anchor) Shares Offered : | 1296000 |
| NII (HNI) Shares Offered: | 972000 |
| - bNII > ₹10L: | 648000 |
| - sNII < ₹10L: | 324000 |
| Retail Shares Offered: | 2272800 |
| Total Shares Offered: | 4881600 |
| Application | Lot | Shares | Amount |
|---|---|---|---|
| Individual investors (Retail) (Max) | 2 | 2400 | ₹266400 |
| S-HNI (Min) | 3 | 3600 | ₹399600 |
| S-HNI (Max) | 7 | 8400 | ₹932400 |
| B-HNI (Min) | 8 | 9600 | ₹1065600 |
Avg IPO Size (Sector Based):
₹ 22.10 cr.
Average Sector PE Ratio:
20.33 X
Listing Price:
₹ 154.20
Suba Hotels is one of India’s largest domestic hotel chains in the mid-market sector with 79 operational hotels as of July 2024, comprising 3,744 keys across 51 cities, majority of which are located in emerging markets in tier 2 and 3 cities. Suba Hotels also have a portfolio of 35 hotels in the pre-opening phase, encompassing 1,661 rooms. Suba Hotels operate in the mid-market hotel sector, consisting of upscale, upper-midscale, midscale, and economy brands domestic as well as international.
Suba Hotels primarily cater to guests across business, leisure, and religious tourism, delivering superior service standards at attractive price points. Their hotel portfolio encompasses a diverse range of business models, including owned, managed, revenue share & lease, and franchised properties. Suba Hotels currently categorize their hotel portfolio into four distinct hotels categories based on business models that includes owned, managed, revenue share & lease and franchised hotels In the first quarter of 2024, the hospitality industry experienced ongoing growth propelled by a notable 8.5% increase in the Average Daily Rate (ADR). As a result, the Revenue per Available Room (RevPAR) grew by 11.4%. This growth was primarily driven by factors such as increased corporate travel, a rise in wedding ceremonies, and increased demand for Meetings, Incentives, Conferences, and Exhibitions (MICE) at the end of the financial year 2024.
Over the last two years, hotel operators have also leveraged their scale to rationalize costs and efficiencies, making them relatively more resilient to changing market conditions and resulting in higher profitability. The coming together of the industry to grow rates while rewriting prevalent practices over the last 2 years resulted in reduced overheads and higher profitability with leaner operating structures (Source: JLL Report).
Unistone Capital Private Limited, based in Mumbai is the Lead Manager (BRLM) of Suba Hotels IPO. Unistone Capital Private Limited has handled (17) SME IPOs till date of which (76%) of the SME IPOs have been listed with listing gains. Read full review of Unistone Capital Private Limited .
Suba Hotels IPO may offer opportunites, depending on your investment strategy. For in-depth analysis, risk factors, and KPIs, check our detailed report on Suba Hotels Financial Review Page
Merchant Banker(s) of Suba Hotels IPO: Unistone Capital Private Limited
Suba Hotels IPO subscription was 15.33 X. IPO subscription refers to applications received in an IPO by each quota, i.e., QIB, Retail, and NII. In some IPOs, Eligible employee quota and shareholder’s quota are also present. Learn more about IPO subscriptions here.
Suba Hotels IPO listed at a listing price of 154.20 against the offer price of 111.00.
The current market price of Suba Hotels is 169.95.
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