The transaction marks CPP Investments’ first direct investment in India’s hospitality sector and will provide fresh capital to support Prestige Hospitality Ventures’ expansion across key Indian markets.
Canada Pension Plan Investment Board (CPP Investments) is set to invest up to ₹3,000 crore in Prestige Hospitality Ventures Limited (PHVL), the hospitality platform of Prestige Estates Projects Limited, in a major transaction aimed at supporting the expansion of Prestige Group’s hotel portfolio.
Under transaction documents executed on September 29, CPP Investments will acquire an aggregate stake of approximately 27% in PHVL through a combination of primary capital infusion and a secondary purchase of shares from Prestige Estates. The proposed transaction remains subject to necessary approvals and completion of stipulated conditions, including approval from the Competition Commission of India.
₹3,000 crore investment structured across three tranches
According to Prestige Estates’ regulatory disclosure, the investment will be completed in three tranches.
In the first tranche, Prestige Estates will receive ₹950 crore through the sale of PHVL equity shares to CPP Investments. At the same time, PHVL will receive ₹550 crore through the issuance of Series A compulsorily convertible preference shares.
PHVL will subsequently receive another ₹750 crore each through Series B and Series C compulsorily convertible preference shares.
This means that of the total proposed ₹3,000 crore investment, ₹2,050 crore will be fresh capital infused into PHVL, while ₹950 crore will go to Prestige Estates through the secondary share transaction.
The first tranche is expected to be completed within 60 days, subject to regulatory and other required approvals.
CPP Investments makes India hospitality debut
The transaction represents CPP Investments’ first direct investment in India’s hospitality sector. The Canadian institutional investor has also been expanding its exposure to hospitality assets elsewhere in the Asia-Pacific region, including Japan and South Korea.
CPP Investments said it sees opportunities in India’s hospitality sector supported by growing travel and demand for quality accommodation.
As of June 30, 2026, CPP Investments managed assets of approximately C$863.6 billion on behalf of more than 22 million Canada Pension Plan contributors and beneficiaries.
Prestige targets expansion of hotel portfolio
Prestige Hospitality Ventures owns a portfolio of luxury and premium hotels in key Indian cities and has a substantial development pipeline across Bengaluru, Chennai, Delhi, Goa, Hyderabad and Mumbai.
The majority of CPP Investments’ capital is expected to support the continued expansion of the hospitality platform.
Prestige Group Chairman and Managing Director Irfan Razack described hospitality as an important part of the group’s long-term growth strategy and said the partnership combines CPP Investments’ long-term investment approach with Prestige’s development capabilities and understanding of the Indian market.
Strategic capital following IPO withdrawal
The investment comes shortly after Prestige Hospitality Ventures withdrew plans for an initial public offering amid uncertain market conditions and other considerations.
The CPP Investments transaction provides PHVL with a substantial pool of growth capital while bringing a major global institutional investor into the hospitality platform.
The transaction documents also provide CPP Investments with governance and affirmative voting rights in PHVL. They include potential exit mechanisms through an IPO of PHVL or a put option against Prestige Estates and PHVL after five years from completion of the transaction.
Growing institutional interest in Indian hospitality
The deal adds to the flow of long-term institutional capital into India’s hospitality and real estate ecosystem. For Prestige, the ₹2,050 crore primary infusion provides additional capital to develop and expand its hotel portfolio across several of India’s largest business and leisure destinations.
For CPP Investments, the approximately 27% stake provides exposure to an established hospitality platform at a time when the investor has identified rising travel and demand for quality accommodation as long-term drivers of the Indian market.
With a significant development pipeline already planned across six major Indian markets, the partnership positions Prestige Hospitality Ventures to pursue the next phase of its expansion with the backing of one of the world’s largest institutional investors.
Source: Prestige Estates Projects regulatory disclosure, CPP Investments and ETRealty.