RCS - Eco Hotels UK PLC - Launch of £5 million Pre-IPO Round
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RNS Number : 9843D Eco Hotels UK PLC 12 May 2026
Eco Hotels UK Plc
12(th) May 2026
ECO HOTELS UK PLC LAUNCHES £5 MILLION PRE-IPO RAISE TO SCALE INDIA
CARBON-NEUTRAL HOTEL PLATFORM
ECO HOTELS UK PLC
£5 million Pre-IPO equity raise at a £20 million post-money valuation
Five hotels and 204 keys live across India today
Modulex MegaFactory® commissioned in India - enabling steel modular hotel
roll-out
Up to 100 new-build hotels targeted over the coming decade under the EBOT
model
Corporate update
Eco Hotels UK Plc ('Eco Hotels' or the 'Company'), the world's first
carbon-neutral hotel brand of its kind, today announces the launch of a £5
million Pre-IPO equity raise at a £20 million post-money valuation, ahead of
a planned listing on a recognised stock exchange. Eco Hotels is a subsidiary
of Red Ribbon Asset Management Plc, UK ('Red Ribbon Group')
The fundraise will accelerate the Company's hospitality roll-out across India
on the back of an established operating platform, a fully-built corporate,
technology and brand infrastructure, and the recent commissioning of the
Modulex MegaFactory® in India by sister Red Ribbon Group company, Modulex
Construction Technologies. Together, these provide the foundations for an
industrialised, capital-efficient new-build programme - with up to 100 hotels
targeted over the next decade.
Key Points
• £5 million Pre-IPO equity raise at a £20 million post-money
valuation in Eco Hotels UK Plc
• Five hotels and 204 keys live across India today - operating in Kochi,
Kota, Vadodara, Varanasi and Ayodhya - generating revenue and validating the
multi-brand operating model
• Three proprietary brands now in market: The Eco® (3-star value),
EcoXpress® (mid-economy) and Eco Value® (2-star economy), with the Satva
sub-brand denoting fully vegetarian properties - four of the five live
properties carry the Satva designation
• UK head office, IP, technology stack, central reservations and brand
standards are fully built - the platform is operational, not pre-launch
• Modulex MegaFactory® - the Red Ribbon Group's 40-acre steel modular
buildings facility located approximately 280 km from Mumbai - is commissioned
and producing fully-fitted volumetric modules, bathroom pods, doors and
windows for the Indian and international market
• Up to 100 new-build hotels targeted over the next decade using Modulex
steel modular building technology, with each hotel anticipated to cost
approximately £7 million to deliver turnkey
• PropCo investment opportunity: Eco Hotels is now seeking family
offices, institutional investors and strategic capital partners to fund the
new-build PropCo, which will own the underlying real estate and be operated by
Eco Hotels under its proprietary EBOT (Enterprise-Build-Operate-Transfer)
model
• Eco Hotels & Resorts Limited, the Indian operating subsidiary, is
listed on the Bombay Stock Exchange (BSE: 514402), providing transparent
governance and a clear path to a UK or international listing for Eco Hotels UK
Plc
From operating platform to industrialised roll-out
Eco Hotels has spent the past three years building the foundations of a
scalable hospitality platform: a UK plc holding the brand IP, a BSE-listed
Indian subsidiary, an Indian operating company running 204 live keys across
five cities and three states, and three proprietary brands tested in
pilgrimage, business and education markets. The Company now moves from
platform-build to platform-scale.
The strategic catalyst is the commissioning of the Modulex MegaFactory® in
India. Promoted by Red Ribbon Asset Management Plc - the same group that
founded Eco Hotels - Modulex Construction Technologies has built what the
company describes as the world's largest factory of its kind for steel modular
buildings, designed to produce fully-fitted 3D volumetric modules at
industrial scale. With this facility now operational, Eco Hotels is positioned
to translate India's structural shortage of branded mid-market rooms into a
turnkey, factory-built roll-out programme.
Why modular - and why now
Modular construction is a proven hospitality playbook in mature markets.
Premier Inn (Whitbread plc) - operator of more than 85,000 rooms across the UK
and Ireland - has used prefabricated bedroom and bathroom pods extensively
across its estate, including in its city-centre Hub by Premier Inn format.
Travelodge has been a long-standing adopter of modular methods, including its
landmark 120-room Travelodge Uxbridge - built using stacked steel modules and
widely cited as having reduced build time by approximately 12 weeks against
conventional construction. CitizenM - the Marriott-owned premium-budget chain
founded in the Netherlands - has built much of its global estate using
fully-fitted modular guest rooms, with its Seattle hotel installed at a rate
of seven to eight modules per day and its New York Bowery property delivered
as one of the world's largest standing modular hotel structures.
These precedents demonstrate that steel modular technology can compress hotel
build timelines from years to months, deliver fixed cost and time outcomes,
reduce on-site waste and lower the embodied carbon of new construction. Eco
Hotels intends to apply the same playbook in India - a market with 1.4 billion
people and only an estimated ~60,000 branded rooms - using the proximity of
the Modulex MegaFactory® and the directors' own brand standards to deliver a
100-room hotel in approximately 24 weeks of factory and on-site programme.
The PropCo opportunity - EBOT model
Each new-build Eco Hotels property is expected to cost approximately £7
million to deliver fully-fitted, turnkey, on a freehold or long-leasehold
basis. To fund this roll-out, Eco Hotels is now opening conversations with
family offices, institutional investors, sovereign and strategic capital, and
hospitality real estate funds to participate in the new-build PropCo.
Under the Company's proprietary EBOT (Enterprise-Build-Operate-Transfer)
model, the PropCo holds the underlying property and physical asset, while Eco
Hotels enterprises, builds (via Modulex), operates and ultimately transfers
the asset under a structured arrangement. Investors in the PropCo gain
exposure to Indian hospitality real estate with carbon-neutral-aligned
operating standards, a contracted operator with skin in the game, and an asset
class underpinned by India's structural under-supply of branded mid-market
rooms.
Use of £5 million Pre-IPO proceeds
• £2.0 million (40%) - India investment: increase ownership in the
BSE-listed Eco Hotels & Resorts Limited and deploy growth capital into the
operating subsidiary
• £1.5 million (30%) - Roll-out plan: acquisition pipeline,
refurbishment, brand launch and pre-opening across priority cities including
Mumbai, Pune, Goa and NCR
• £1.5 million (30%) - UK HQ and listing bridge: UK head-office, IP
management, listing-readiness costs and working capital reserves
Management Quotes
Suchit Punnose, Chairman and Founder of Eco Hotels UK Plc and Founder &
CEO of Red Ribbon Asset Management Plc, said: "Eco Hotels has reached the
inflection point we have been working towards. We have a UK plc, a BSE-listed
Indian subsidiary, three proprietary brands, five live hotels generating
revenue, and now - with the Modulex MegaFactory® commissioned - the
industrial backbone to roll out at scale. The £5 million Pre-IPO raise and
the PropCo opportunity together open the path to up to 100 new-build,
carbon-neutral hotels over the coming decade. The market opportunity in India
is structural; the timing is right; and the platform is built."
Jay Krishnan, Co-Founder and Group CEO of Eco Hotels UK Plc, added: "What
Premier Inn, Travelodge and citizenM have proven in mature markets is that
branded mid-market hospitality can be industrialised - and that modular
construction is the unlock. With each hotel costing approximately £7 million
turnkey and the Modulex MegaFactory® on our doorstep in India, we are
inviting family offices and institutional investors to participate in the
PropCo alongside us, with Eco Hotels operating each property under our EBOT
model. This is hospitality real estate, factory-built, carbon-neutral-aligned,
and operated by a team that has already put 204 keys on the ground."
About Eco Hotels UK Plc
Eco Hotels UK Plc (Co. No. 06584439) is a UK plc and the holding company for
an integrated, carbon-neutral hotel platform in India. The Company owns the
brand IP for The Eco®, EcoXpress® and Eco Value®, together with the Satva
pure-vegetarian sub-brand, and licenses these into its Indian operating chain
via Eco Hotels & Resorts Limited (BSE: 514402) and Eco Hotels India
Private Limited. The Company is registered at 16 Berkeley Street, Mayfair,
London W1J 8DZ. Eco Hotels is an incubation project of Red Ribbon Asset
Management Plc, a UK-headquartered Mainstream Impact Investment company.
About Modulex
Modulex Construction Technologies is a Red Ribbon Group company and a global
ConstrucTech business delivering 3D volumetric steel modular buildings. Its
Indian MegaFactory® - described by the company as the world's largest of its
kind for steel modular buildings - is a 40-acre manufacturing facility
approximately 280 km from Mumbai, producing fully-fitted modules, bathroom
pods, doors and windows. In January 2026, Modulex acquired a majority stake in
UK-based Merit Industrialised Construction Limited, integrating advanced
modular IP into the MegaFactory® platform.
Enquiries
Investors: invest@ecohotelsglobal.com
Press: press@ecohotelsglobal.com
PropCo / institutional enquiries: invest@ecohotelsglobal.com
Website: www.ecohotelsglobal.com
Important notice
This announcement is for information only and does not constitute, or form
part of, an offer to sell or issue, or the solicitation of an offer to buy or
subscribe for, any securities, in any jurisdiction. The Pre-IPO raise is a
private offer made only to persons who qualify as high-net-worth individuals,
sophisticated investors or other categories permitted under the UK Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005. Subscription
is governed solely by the Information Memorandum (April 2026) and Application
Form. Forecasts, valuations and exit scenarios are illustrative and not
guaranteed. A future stock-exchange listing is the directors' intention, not a
commitment, and is subject to market conditions. Capital is at risk and
investors may lose all of their investment. The shares are illiquid and there
is no established secondary market. Prospective investors are encouraged to
take independent professional advice.
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