Blackstone Bets Big on India's Luxury Hotels: Ritz-Carlton Bengaluru Deal Unveiled!

Blackstone is set to acquire a significant stake, up to 55%, in Nitesh Residency Hotel, the entity owning The Ritz-Carlton Bengaluru, from Nitesh Land. This transaction is expected to be finalized this quarter, with Blackstone paying approximately ₹600-700 crore for its stake. The deal places the valuation of the 277-room luxury hotel between ₹1,200 and ₹1,400 crore. For the fiscal year 2025, the hotel reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of ₹105 crore. Following the deal, Nitesh Shetty, founder of Nitesh Land, will retain a 45-49% stake. The hotel, which had previously faced insolvency proceedings initiated by Yes Bank during the COVID-19 pandemic, has now resolved these issues through mediation, with Kotak Mahindra Bank set to replace Yes Bank as the lender. Impact This acquisition underscores strong foreign investor confidence in India's hospitality sector, especially its premium segment. The recovery driven by corporate travel, domestic tourism, and MICE (Meetings, Incentives, Conferences, and Exhibitions) activities has led to rates and occupancies surpassing pre-pandemic levels. Blackstone's move aligns with its strategy to build a hospitality portfolio and highlights the attractiveness of high-end urban hotels in India, which has limited supply. Rating: 8/10 Difficult Terms Stake: A portion of ownership in a company or property. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's operating performance. Insolvency Proceedings: Legal actions taken when a company is unable to pay its debts. Mediation: A process where a neutral third party helps disputing parties reach an agreement.