Shares of Prestige Estate Projects surged 5.6 per cent to Rs 312.15 apiece on the BSE on Wednesday after the real estate developer inked pact with Marriott International to develop six hotels across South India.
"The company will add 650 rooms to its inventory across six new properties. Currently, it is operating 850 rooms in partnership with Marriott International. Prestige Group will invest an incremental Rs 350 crore for setting up of new properties," Irfan Razack, Chairman and Managing Director, Prestige Group said, adding, "Reduction of GST from 28 per cent to 18 per cent for premium and luxury hotels, reduction of corporate tax and regional airport development under UDAN are paving the way for robust market demand”.
Presently, the company operates 1,200 hotel rooms across multiple brands, which contribute around Rs 400 crore to its topline. Over the next three to four years, the company plans to increase its hotel business to 3,100 keys which will contribute around Rs 1,200 crore revenue annually.
Partner firm Marriott International is looking to grow its India footprint by adding 50 hotels that will provide 15,000 more rooms over the next five years. According to the proposal, the hotels in the pipeline will include a range of Marriott brand portfolios such as JW Marriott, Tribute Portfolio and Sheraton. All these hotels are expected to be operational between 2021 and 2025.
At 11:23 AM, the stock was trading 3.62 per cent higher at Rs 306.20, as against a 0.33 per cent rise in the benchmark S&P BSE Sensex. Thus far in 2019, the counter has surged nearly 35 per cent, outperforming the benchmark Sensex. The headline index has advanced 13 per cent during the period, while the S&P BSE Realty index gained 19 per cent till Tuesday.
Projected to be worth Rs 1.21 lakh crore by 2023, the Indian hospitality sector is witnessing an upward trend across mid-scale, upscale and luxury segments.
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