Prestige Estates secures Rs 3,000 crore investment from CPPIB

Prestige Hospitality Ventures Limited (PHVL), the hotel arm of Bengaluru-based Prestige Estates Projects Limited, has secured an investment of approximately Rs 3,000 crore (roughly $313 million) from the Canada Pension Plan Investment Board (CPPIB).

This transaction marks CPPIB’s first direct investment in the Indian hospitality sector. The deal provides CPPIB with an approximate 27% stake in PHVL through three installments of compulsorily convertible preference shares. The capital infusion includes both a secondary purchase of existing shares from Prestige Estates and fresh capital for the hotel company to support its growth pipeline.

The investment will fund luxury and premium hotel projects across several major Indian cities, including Bengaluru, Chennai, Goa, Delhi, Mumbai, and Hyderabad. CPPIB will also receive certain governance and voting rights. After five years, the fund has exit options via a potential initial public offering (IPO) of PHVL or a put option against Prestige Estates and PHVL.

This private investment follows Prestige Estates' decision to withdraw its planned PHVL IPO in April 2025, citing uncertain market conditions.