Mid-market and upscale hospitality chain Pride Hotels is planning to add approximately 4,140 rooms to its existing operational inventory of 3,204 keys over the next 12–24 months. The expansion could take its combined operational portfolio and development pipeline to 7,341 rooms across 90 properties, representing a 129 per cent increase over its current operational capacity. Additionally, the company is planning capital expenditure of ₹350–400 crore over the next two to three years, according to industry sources familiar with the development.
The expansion aligns with Pride Hotels’ long-term target of reaching 10,000 rooms, including its development pipeline, by 2030. To achieve this goal, the company plans to pursue a combination of management contracts, owned-property developments, selective leasing arrangements, and acquisitions.
Satyen Jain, Chief Executive Officer, Pride Hotels Group, said the company would maintain its focus on the mid-market, upper-mid-market, and upscale hospitality segments rather than enter the luxury hotel category.
“We are very clear about our focus,” Jain said, highlighting the growing demand from corporate travellers, families, wedding groups, and domestic tourists.
Pride Hotels operates multiple brands catering to different market segments. Its Biznotel brand targets room tariffs ranging from ₹3,000 to ₹5,000, while Pride Premier caters to the ₹4,000–7,000 category. Its upscale Pride Plaza brand commands room tariffs of approximately ₹6,000–12,000. Meanwhile, Pride Elite primarily serves leisure and pilgrimage destinations.
Although the company continues to expand its mid-market presence, its established upscale properties remain a major contributor to earnings. Jain indicated that Pride Plaza generates the majority of the company’s revenue. At the same time, the growing managed-hotel portfolio is expected to contribute higher management fees as individual properties mature.
Pride Hotels recorded a 3.1 percent increase in its average daily rate (ADR) to ₹6,773 in FY26. During the same period, occupancy improved to 76 per cent from 72.4 per cent, while revenue per available room (RevPAR) increased 7.6 per cent to ₹5,119.
Under its management contract model, property owners finance hotel development and recognise the operating revenue, while Pride Hotels earns fees linked to revenue and operating performance. According to Jain, newly managed hotels generally require 18–24 months to stabilise operations.
Over the past year, Pride Hotels added 481 operational rooms, increasing its capacity by nearly 18 per cent to 3,204 keys across 40 hotels as of September 2026. In comparison, the company operated 34 hotels with 2,723 rooms during the corresponding period a year earlier.
Its operational inventory under management contracts grew 21.4 per cent to 1,927 rooms, while its signed managed-room pipeline increased 51.2 per cent to 2,268 rooms.
The company has recently expanded into several destinations, including Chhatrapati Sambhajinagar, Alwar, Gandhinagar, Darjeeling, Greater Noida, Himmatnagar, Mandarmani, and Shravasti. It has also added hotels in Indore and Dehradun as part of its wider expansion strategy.
In August, Pride Hotels launched its first fully leased property in Indore, featuring 141 rooms under a 25-year agreement. Furthermore, the company plans to add 163 rooms to its Nagpur property, with the additional inventory expected to become operational in September 2027.
Jain said two properties in suburban Mumbai are expected to commence operations within approximately a year. The company is also evaluating expansion opportunities in Hyderabad, Ayodhya, and Varanasi while strengthening its presence in eastern and southern India.
Meanwhile, Pride Hotels’ proposed ₹260 crore initial public offering (IPO) is expected to support property upgrades and debt reduction. Under the fresh issue, the company has earmarked ₹159.68 crore for renovating six owned hotels and ₹40 crore towards debt repayment.
Jain said the renovation work would take place in phases to avoid shutting down entire properties. By upgrading older rooms, the company aims to reposition them into higher-priced categories and improve room yields.
Despite its expanding portfolio, Pride Hotels continues to face the challenge of accelerating revenue growth. Its consolidated revenue from operations increased 6.3 per cent to ₹324.89 crore in FY26, compared with ₹305.62 crore in FY25. Meanwhile, consolidated profit attributable to shareholders rose 8.4 per cent to ₹98.85 crore from ₹91.20 crore.
Management fee income registered stronger growth, increasing 40.6 per cent to ₹10.05 crore. However, it contributed only 3.1 percent of the company’s operating revenue. Additionally, operating cash flow declined to ₹105.59 crore in FY26 from ₹118.20 crore in the previous financial year.
As Pride Hotels accelerates its expansion, its key challenge will be converting the growing property network into higher recurring management fees and stronger revenue growth. At the same time, the company will need to balance expansion-related investments with operational efficiency and improved returns from its existing properties.
