Prestige Estates Projects Ltd has partnered with Bengaluru Airport City Limited (BACL) to develop an integrated convention and hospitality destination near Kempegowda International Airport.
The project will include:
- A convention and exhibition centre.
- A St. Regis hotel.
- A Marriott Marquis hotel.
- Premium office space.
- Curated food and beverage outlets.
The announcement was made on June 11.
Located within Bengaluru Airport City
The development will come up inside Bengaluru Airport City, a mixed-use district being developed by BACL, the wholly owned development arm of Bangalore International Airport Limited (BIAL).
BIAL operates Kempegowda International Airport.
Airport City itself is being planned with:
- Corporate parks.
- Technology hubs.
- A medical district.
- A knowledge park.
- Hospitality assets.
- A central park.
- A concert arena.
The proposed convention facility is expected to cater to the MICE segment — meetings, incentives, conferences and exhibitions.
Financial details yet to be disclosed
Prestige and BACL did not announce:
- The investment size.
- The project area.
- Ownership structure.
- Revenue-sharing arrangement.
- Completion timeline.
As a result, the immediate financial impact of the project cannot be assessed.
Fits Prestige’s annuity income strategy
The project aligns with Prestige’s plan to increase recurring income from commercial and hospitality assets.
During its FY26 earnings call, management said it intends to significantly expand annuity income by FY30.
The strategy is backed by a planned ₹15,000 crore investment, funded through:
- About 60 percent internal accruals.
- About 40 percent debt.
The focus is on assets that generate steady cash flows, including:
- Offices.
- Shopping malls.
- Hotels.
Hospitality business and IPO plans
Prestige’s hospitality segment reported:
| Particulars | FY26 |
|---|---|
| Revenue | ₹1,050 crore |
| EBITDA | ₹440 crore |
| Occupancy in annuity assets | 92% |
| Retail occupancy | 99% |
The company has also filed draft papers for the IPO of Prestige Hospitality Ventures, which could raise up to ₹2,700 crore.
The addition of St. Regis and Marriott Marquis properties further strengthens its hospitality portfolio.
FY27 growth outlook
Management has guided for:
- 15-20 percent growth in pre-sales.
- 15-20 percent growth in collections.
The launch pipeline carries a gross development value (GDV) of about ₹58,000 crore.
Residential revenue recognition is expected to be between ₹12,000 crore and ₹13,000 crore.
Recent expansion plans include:
- Hyderabad project with GDV of ₹9,500 crore.
- Versova project in Mumbai with GDV of ₹9,000 crore.
- Gurugram project with GDV of ₹4,200 crore.
- Ghaziabad township with projected value of ₹10,000 crore over six years.
FY26 performance
Prestige reported record numbers in FY26.
Key figures
| Particulars | FY26 | Growth |
|---|---|---|
| Pre-sales | ₹30,024 crore | 76% |
| Collections | ₹18,515 crore | 53% |
| Revenue | ₹13,196 crore | 71% |
| EBITDA | ₹4,219 crore | — |
| PAT | ₹1,312 crore | 113% |
| EPS | ₹27.76 | From ₹11.19 |
In the March quarter alone:
- Revenue rose 161 percent.
- Net profit increased about 596 percent.
The board declared a dividend of ₹2 per share and approved raising up to ₹2,000 crore through non-convertible debentures.
Over the last five years, the company has delivered a profit CAGR of 20.9 percent.
Stock performance
Prestige Estates has a market capitalization of around ₹57,000 crore.
The stock was trading near ₹1,323 and has declined about 19 percent over the past year.
Its 52-week range stands between:
- High: ₹1,814.
- Low: ₹1,090.
Mutual funds hold around 18 percent of the company.
About the company
Founded in 1986, Prestige Estates Projects Ltd is one of India’s largest real estate developers with businesses spanning:
- Residential.
- Commercial.
- Retail.
- Hospitality.
- Leisure.
The Bengaluru-based company has developed projects including Prestige Shantiniketan and Prestige Golfshire.
TL;DR
Prestige Estates and Bengaluru Airport City Limited have unveiled plans for a convention centre and two luxury hotels near Bengaluru airport. While the project details and investment size are yet to be disclosed, the development aligns with Prestige’s strategy of expanding recurring income through hospitality and commercial assets.
AI summary
- Prestige and BACL will develop a convention and hospitality hub near Bengaluru airport.
- The project includes St. Regis and Marriott Marquis hotels.
- Investment details and timelines have not been disclosed.
- The project supports Prestige’s plan to boost annuity income by FY30.
- Prestige Hospitality Ventures is preparing for a ₹2,700 crore IPO.
