Juniper Hotels IPO Details Issue Price, Date, News, Allotment Status, GMP, Link, Updates

Juniper Hotels IPO Company Details:

Juniper Hotels Limited (JHL) was established in 1985 with the goal of becoming a leading developer and owner of luxurious hotels. Juniper Hotels Ltd. has seven hotels and serviced apartments with 1,836 rooms across all its locations in India. Two Seas Holdings Ltd., an affiliate of Hyatt Hotels Corporation, and Saraf Hotels Ltd. jointly control Juniper Hotels Ltd. This presents a singular strategic alliance between a global hotel chain such as the Hyatt group and a hotel developer. In Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi (in Karnataka), it has hotels and service flats. Hyatt establishments are regarded as some of the most upscale lodging and hospitality establishments in India and around the globe.

What is included in Juniper Hotels’ portfolio?

The Grand Hyatt Mumbai has 549 rooms and 116 serviced flats. At the ANDAZ Delhi, Juniper Hotels Ltd. offers 401 rooms, and at the Hyatt Delhi Residences, it offers 129 serviced apartments. Additionally, the Hyatt Regency Ahmedabad boasts 211 rooms, the Hyatt Regency Lucknow 206 rooms, the Hyatt Raipur 105 rooms, and the Hyatt Place, Hampi, a historic UNESCO-certified area in Karnataka, with 119 rooms. The CHPL Group and Juniper Hotels Ltd. together employ 1,993 people for the company. Among its 1,836 keys are 245 serviced units under the Hyatt group’s management and trademark.

IPO-Note	Juniper Hotels Limited
Rs.342 – Rs.360 per Equity share	Recommendation: Avoid

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Juniper Hotels IPO Details:

 

Juniper Hotels IPO Strengths:

• JHL has developed its hotels at locations with high barriers to entry. For example, according to the Horwath Report, the land parcels for hotels of the scale of Grand Hyatt Mumbai Hotel and Residences and Andaz Delhi, are difficult to obtain, and carry high cost and associated development risks.

• Decades-long partnership between Saraf Group & Hyatt (since 1982’s 1st India Hyatt) has fostered deep alignment on goals, values & culture, fueling their success and high EBITDA margins.

• Over the past two years, the company’s top line revenues have grown significantly. In fact, during the past two years, Juniper Hotels’ revenues have increased by about four times as a result of the company’s increased business traction, improved key capacity utilization, and improved fixed cost absorption.

Juniper Hotels IPO Risk Factors:

• JHL has substantial indebtedness which requires significant cash flows to service, and limits its ability to operate freely.

• A significant portion of its revenue from operations (90.48% in the six months ended September 30, 2023) is derived from three hotels/serviced apartments in Mumbai (Maharashtra) and New Delhi out of the portfolio of four hotels/serviced apartments and any adverse developments affecting these hotels/serviced apartments or the regions in which they operate could harm its business

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Juniper Hotels IPO Financial Performance:

 

Juniper Hotels IPO Shareholding Pattern:

Source: RHP, EWL Research

Juniper Hotels IPOOutlook:

Over the years, Juniper Hotels has shown to be a high-caliber and elegant property manager for the hotel industry. In the future, this should increase operating efficiency. Juniper Hotels Ltd.’s business strategy combines asset ownership on the back end with a worldwide brand like Hyatt on the front end. Even though the fixed cost absorption has significantly increased, the business is still losing money. Therefore, conventional P/E-based valuation metrics might not be applicable in this situation. The net loss in the final year between FY22 and FY23 decreased from Rs188 crore to just Rs1.50 crore, which is a positive indicator for the company. But in the first half of FY24, the losses have increased while sales have stabilised. Hence we recommend to avoid the offer for now.

 

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