Rajan Shinde, research analyst at Mehta Equities, says, “We believe Apeejay Surrendra Park Hotels IPO allows investors to invest in the 8th largest hotel chain with asset ownership in India.”

The brokerage house has recommended investors to “SUBSCRIBE” to the IPO for a long-term perspective, citing that the company is well-positioned to capitalise on emerging market trends on the back of its established brands, strategic growth initiatives, and resilient business model.

Dhruv Mudaraddi, Research Analyst at Stoxbox has recommended a “SUBSCRIBE" rating, saying that Apeejay Surrendra Park Hotels Ltd. stands at the intersection of a resurgent hospitality industry and a post-pandemic economic rebound.

“With a diversified pan-India portfolio, the company effectively spreads its risk across various geographic regions and market segments, enabling it to capture opportunities in a granular fashion. Moreover, the company's historically high occupancy rates bode well for improving net margins, thereby contributing to its financial stability and growth trajectory. The valuation, although reasonable compared to peers, reflects market optimism in the relatively high P/E ratio, which stands at 56.4 times based on FY23 EPS,” it says in a report.

Choice Broking has given a 'Subscribe with Caution' rating for the issue, citing positive macros for the hospitality sector. The brokerage says the issue is fully priced, with the company demanding a P/E multiple of 63.1 times at the higher price band, which is in line with the peer average of 64.4 times.

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Park Hotels IPO subscription

Park Hotels IPO subscribed 2x on first day; retail portion booked 5 times