Juniper Hotels IPO: 10 key risks from the RHP investors should consider before subscribing to the issue

Juniper Hotels IPO: The issue opened for subscription today (Wednesday, February 21), and will close on Friday, February 23.

Here are 10 Key risks from the RHP to be considered before subscribing to the Juniper Hotels issue

1. A significant portion of our revenue from operations (85.59% in Fiscal 2023) is derived from three of our hotels/serviced apartments in Mumbai (Maharashtra) and New Delhi and any adverse developments affecting these hotels/serviced apartments or the regions in which they operate, could have an adverse effect on Juniper Hotels business, results of operation, cash flows and financial condition.

2.Two of hotels/serviced apartments (Andaz Delhi and Hyatt Delhi Residences) and one of recently acquired hotels (Hyatt Place Hampi) are located on leased land. If Juniper Hotels is unable to comply with the terms of the lease or license agreements, renew its agreements or enter into new agreements on favorable terms, or at all, Juniper Hotels business, results of operations and financial condition and cash flows may be adversely affected.

Also read- Juniper Hotels IPO opens today: GMP, subscription status, issue details, review, more. Should you subscribe or not?

3. All our hotels and serviced apartments are currently operating under the Hyatt brands. Juniper Hotels has entered into long term agreements with certain Hyatt entities for the operations and management of its hotels and usage of brands owned by Hyatt International Corporation. If these agreements are terminated or not renewed, Juniper Hotels business, results of operations, cash flows and financial condition may be adversely affected.

4. Juniper Hotels is exposed to risks associated with the ownership and development of its hotel properties. Delays in the construction of new hotels or improvements or refurbishment of our properties may have an adverse effect on its business, results of operations, cash flows and financial condition.

5. Juniper Hotels had a large workforce of 1,570 employees as of June 30, 2023, deployed across its hotels and serviced apartments and may be exposed to service-related claims and losses or employee disruptions and work stoppages that could have an adverse effect on its business and reputation.

6. Any failure to maintain the quality and hygiene standards of the food and beverages that hotel offer, will adversely affect its F&B Revenue, overall business and financial performance.

7. Juniper Hotels several expenses incurred in its operations are relatively fixed in nature, and its inability to effectively manage such expenses may have an adverse effect on its business, results of operations, cash flows and financial conditions.

Also Read- Juniper Hotels Limited raises ₹810 crore from anchor investors ahead of IPO

8.If Juniper Hotels are unable to realize the anticipated growth opportunities and synergies from the assets it acquired, including from the acquisition of Chartered Hotels Private Limited or any other acquisition that it may undertake in the future, its business, financial condition, cash flows and results of operations may be adversely affected.

9. Negative customer experiences or negative publicity surrounding its hotel properties or the Hyatt brands could have an impact on ability to source customers and in turn it may need to spend more financial resources towards advertising and promotion which may have an adverse impact on its business and financial condition.

10.Juniper Hotels and certain of its Subsidiaries have incurred losses in the past.

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