JW Marriott Bengaluru Set for ₹1,300 Crore Sale Amidst Bankruptcy Resolution

Gstaad Hotels, part of the Raheja promoter group, is looking to sell the JW Marriott Bengaluru for up to ₹1,300 crore as part of its bankruptcy resolution. This proposed sale is notable as one of the largest single-asset hotel monetizations in India.

The company defaulted on a term loan facility extended in 2017, leading to a bankruptcy plea being admitted by the National Company Law Tribunal (NCLT). Following this, the hotel has garnered significant interest, with more than 40 potential buyers, including top corporates, private equity funds, and hotel operators, submitting expressions of interest.

Industry consultants suggest that the hotel's strong performance, with an Ebitda exceeding ₹100 crore last year, positions it for a sale price potentially higher than the recovery amount. This situation highlights a trend where owners are increasingly viewing branded hotel assets as monetization opportunities rather than long-term holdings.

The sale process is expected to set a benchmark for branded hotel deals in India's prime metro locations and could stimulate further transactions in the sector. The resolution professional has been managing the Corporate Insolvency Resolution Process (CIRP), with revised timelines for the submission of resolution plans.

Impact: This sale could encourage other distressed hotel assets to come to market, potentially leading to consolidation and new ownership structures in the hospitality sector. It also signals investor confidence in prime Indian real estate and established hotel brands. Rating: 7/10.

**Explanation of Difficult Terms:** * **Bankruptcy resolution**: A legal process where a company that cannot pay its debts seeks to reorganize its finances or sell assets to pay off creditors, often under court supervision. * **National Company Law Tribunal (NCLT)**: A quasi-judicial body in India established to handle corporate disputes, including insolvency and bankruptcy proceedings. * **Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortization)**: A financial metric used to measure a company's operational performance and profitability before accounting for interest, taxes, depreciation, and amortization expenses. * **Asset Reconstruction Company (ARC)**: A company that buys distressed assets or bad loans from financial institutions to manage and recover value. * **Corporate Insolvency Resolution Process (CIRP)**: The formal legal framework under India's Insolvency and Bankruptcy Code for resolving the financial distress of a company.