Gstaad Hotels to Raise ₹1,300 Crore from Sale of JW Marriott Bengaluru
In a landmark deal for India’s hospitality market, Gstaad Hotels is expected to raise up to ₹1,300 crore from the sale of the JW Marriott Bengaluru — positioning it among the largest single-asset hotel monetisations ever recorded in the country.
By SOH Edit Team
Gstaad Hotels is poised to generate up to ₹1,300 crore by offloading the JW Marriott Bengaluru, marking one of the largest single-asset hotel monetisations in India to date. The sale of the prime Vittal Mallya Road property comes as part of the company’s ongoing bankruptcy resolution process.
The hotel has attracted over 40 expressions of interest from a diverse pool of corporate conglomerates and private equity investors, highlighting strong appetite for branded hospitality assets in major metros.
Gstaad Hotels, part of the Raheja promoter group ecosystem, holds the JW Marriott through a special-purpose vehicle. The company entered insolvency proceedings after defaulting on approximately ₹666 crore in debt, prompting the National Company Law Tribunal (NCLT) to admit a bankruptcy plea in July 2025.
“Last year, the property generated an EBITDA of over ₹100 crore. Given its location and performance, it is likely to command a valuation significantly above recovery value. We are seeing a structural shift where promoter-owners increasingly view branded hotel assets as monetisation opportunities rather than long-term holdings,” stated an industry consultant.
In top metros such as Bengaluru, investors are reportedly willing to pay premiums for operational assets backed by strong brand licences and located in prime real estate corridors, offering substantial upside potential.
“For buyers, the attraction lies in stable operations, brand continuity, and long-term real estate value,” the consultant added. “For sellers, the motivation is clear — unlock capital, reduce leverage, and address creditor claims under insolvency.”
The resolution professional (RP) overseeing Gstaad Hotels issued an invitation for Expressions of Interest (EoIs) in August 2025. A revised Corporate Insolvency Resolution Process (CIRP) timeline was approved following the sixth Committee of Creditors (CoC) meeting on October 23, including the publication of the final list of prospective resolution applicants (PRAs) and the issuance of the Information Memorandum (IM) and Request for Resolution Plans (RFRP).
The company’s insolvency stems from a term-loan facility extended in 2017 by Piramal Capital & Housing Finance, later assigned to Omkara Asset Reconstruction Company (ARC).
The transaction could set a benchmark for high-value hotel asset sales in India, potentially spurring sale-leasebacks, strategic exits, and portfolio realignments across the hospitality sector.