Suba Hotels Ltd IPO

One of Indias leading domestic hotel chains in the mid-scale sector with a differentiated business model.

Wide geographical coverage.

Established distribution network.

Ability to acquire non / underperforming hotels and demonstrated track record to re-rate hotels performancethrough renovation and / or rebranding.

Experienced promoters and management team.

A large portion of our revenue is realised from our Owned Hotels and revenue share and lease,contributing approximately 22.08% and 45.63%, respectively for the financial year 2025 of therevenue from operations in key geographies and any adverse developments affecting these hotels orthe regions in which they operate, could have an adverse effect on our business, results of operation,cash flows and financial condition.

We derive a significant portion of our room revenue from corporate and leisure accounts from our ownedand revenue share and lease hotels. Changes in travellers preferences due to increased use of telepresenceequipment, cost of travel, spending habits, and other factors may adversely affect the demand for hotelrooms, thereby adversely impacting our business, results of operations, financial condition, and cash flows.

Certain of our hotels which we operate are leased from third parties. If we are unable to comply with theterms of the lease or license agreements, renew our agreements or enter into new agreements on favourableterms, or at all, our business, results of operations and financial condition and cash flows may be adverselyaffected.

We have entered into master franchise agreement dated May 13, 2022 with Choice Hotels Licensing B.V.for three brands of Choice Hotels in India - Clarion (upscale), Quality (upper midscale) and Comfort(midscale). For the Financial Year 2025, our hotels franchised under MFA of Choice Hotels - contributed9.97% to our revenue from operations. If these agreements are terminated or not renewed, our business,results of operations and financial condition may be adversely affected.

Our company has not complied with the provisions of Sections 185 and 186 of the Companies Act, 2013,regarding loans, investments, guarantees, and securities.

Certain portion of our hotel bookings (average 22.47% of room revenue for financial year 2025) originatefrom online travel agents and intermediaries. In the event such online travel agents and intermediariescontinue to gain market share compared to our direct booking channels; they may be able to negotiatehigher commissions for services provided, or demand significant concessions or reduced room ratescausing an adverse effect on our margins, business, and results of operations.

Our operations and management agreements contain certain restrictive provisions, which may hinder ourability to operate such managed hotels and may cause an adverse effect on our business and operations.

A significant portion of our revenues are derived from a few hotels and from hotels concentrated in a fewgeographical regions and any adverse developments affecting such hotels or regions could have an adverseeffect on our business, results of operation and financial condition.

Our funding requirements and the proposed deployment of the Net Proceeds of the Issue have not beenappraised by any bank or financial institution are based on management estimates and may be subject tochange based on various factors, some of which are beyond our control.

Our Statutory Auditors have included certain emphasis of matters in our Restated Financial Statements.