Gstaad Hotels, currently under bankruptcy resolution, expects to secure up to ₹1,300 crore from the sale of the JW Marriott Bengaluru. The transaction, involving the premium property located on Vittal Mallya Road, is likely to rank among the largest single-asset hotel monetisation deals in India.
As per industry sources, the asset has attracted more than 40 expressions of interest from leading corporates, hotel chains, and private equity investors.
Gstaad Hotels, linked to the Raheja promoter group ecosystem, owns the Bengaluru JW Marriott through a special-purpose vehicle. The company entered insolvency after defaults amounting to about ₹666 crore resulted in the National Company Law Tribunal admitting a bankruptcy petition against it in July this year.
An industry adviser noted, “Last year, Ebitda was over ₹100 crore. The property can get much higher pricing than the recovery amount. Many top corporates are in the fray to buy out the asset,” adding, “We are seeing a structural shift in how promoter-owners view branded hotel assets-increasingly as monetisation plays rather than long-term holding businesses.”
Investors in major cities such as Bengaluru are now willing to pay a premium for operational hotels backed by strong brands and located in prime commercial zones with robust growth potential.
For buyers, the consultant said, “the upside lies in stable operations, brand continuity, and long-term real estate value. For the seller, the impetus is clear: unlock capital, reduce leverage, and address claims under the insolvency regime.”
The asset sale is aligned with the invitation for expressions of interest (EoI) issued by the resolution professional in August 2025.
The financial distress at Gstaad Hotels stems from a term loan extended in 2017 by Piramal Capital & Housing Finance, later assigned to Omkara Asset Reconstruction Company (ARC).
Market experts believe the deal could set a pricing benchmark for marquee branded hospitality assets in top urban centres and prompt more strategic exits, sale-leasebacks and portfolio-level divestments.
The resolution professional has also released a revised timeline for the ongoing corporate insolvency resolution process (CIRP). After deliberations during the sixth committee of creditors (CoC) meeting on October 23, the creditors approved via e-voting the updated schedule—moving 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) to October 27.
