Summary:
- Suba Hotels aims to raise $8.5 million in IPO on Sept. 29.
- Proceeds to fund hotel upgrades, property and corporate expenses.
- As of July, 88 hotels in 50+ cities, with 40 more planned.
INDIA’S SUBA HOTELS will launch its initial public offering on Sept. 29 to raise $8.5 million or Rs 75.47 crore. The Mumbai-based firm operates in the upscale, upper-midscale, midscale and economy segments in tier 2 and tier 3 cities across India.
Proceeds will fund hotel upgrades, last-mile premises funding and corporate purposes, ANI reported, citing a company statement. As of July, the company had 88 hotels with 4,096 rooms in over 50 cities and 40 upcoming properties with 1,831 rooms.
“Over the last two decades, we have built Suba into a mid-market hospitality brand with a diversified portfolio across India’s business and leisure hubs,” said Mansur Mehta, Suba’s chairman and managing director, according to ANI. “With our asset-light model, global brand partnerships and expansion into tier 2 and tier 3 cities, we are positioned for growth. The IPO will strengthen our balance sheet and accelerate expansion.”
Mubeen Mehta, Suba’s CEO, said the company aims to build a hospitality ecosystem balancing growth, innovation, and guest experience.
“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 sustainably,” he said. “This IPO is not just a milestone for the company but a commitment to stakeholders to deliver consistent value and strengthen Suba’s position in India’s mid-market hospitality segment."
Suba holds master franchise rights for Choice Hotels’ Comfort, Clarion and Quality brands.
“These partnerships are important,” Mansur Mehta told Ahmedabad Mirror, citing Choice’s loyalty network of more than 70 million members and global distribution systems that extend brand reach and support guest experience across India.
Mansur Mehta said the company plans to invest approximately $6.08 million or Rs 53.48 crore in upgrading hotels and securing properties in tier 2 and tier 3 cities, where room rates have risen by up to 80 percent.
“We are shifting to revenue-sharing lease models, which offer profit potential and shared value for the company and hotel owners,” he told Ahmedabad Mirror.
He also identified tier 2 and tier 3 cities as the primary growth areas for Indian hospitality, noting industrial hubs where extended stays and rising incomes create opportunities, the Mirror reported. The company draws demand from corporates, online travel agents and event bookings for MICE, stabilizing revenues despite pricing fluctuations in metro markets.
“We think global and act local with a strong team and proven business model that delivers consistent returns,” he told Ahmedabad Mirror. “This IPO is an opportunity for investors to join India’s expanding mid-market hospitality story with us.”
Separately, Bengaluru-based Prestige Hospitality Ventures got SEBI nod for a $308 million IPO, targeting October.
