Khanna is waiting for a better business environment to drive his company's valuation to Rs2,000 crore
IHHR Hospitality has effectively moved its long pending IPO plan back by two years from 2010 to 2012. “We will consider launching the IPO when we achieve a Rs2,000 crore valuation. As of now, that is at least two years away,” said Ashok Khanna, managing director, IHHR Hospitality.
The company which operates the Ananda spas and the Ista Hotels, and counts Morgan Stanley as a partner, has nurtured an IPO ambition as far back as 2006 when it stated a 2007 plan to fund its growth in Tier II cities in India.
At the time, IHHR has announced its first Ista at Trinity Church in Bengaluru and had shared plans for a second Ista in Bengaluru and one Ista each in Hyderabad, Amritsar, Pune, Ahmedabad.
“It is still premature to value a hospitality business in this environment. No one knows how the world will turn. Lending in India is on discounted cash flows and we will have to wait till we achieve Rs2,000 crore,” Khanna said.
At the HIFI 2010 in Mumbai last week, Khanna also announced the opening of an Ista each in Pune and Ahmedabad this year. The Pune property is scheduled to open in late August while the word is still out on the Ahmedabad hotel.
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