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India Hotels Attract $2B Quiet Investment
1 Feb
Summary
- Over $2 billion invested in Indian hotel properties recently.
- Investors prioritize operational hotels for early cash flow.
- High-profile deals include Blackstone and Indian Hotels Company.
India's hospitality industry is attracting significant long-term investment without much fanfare. Approximately $2 billion has been invested in hotel properties across the country in recent months or is currently being processed. Institutional investors, hotel firms, family offices, and wealthy individuals are driving this capital inflow.
The current investment climate favors operational assets or those nearing operational readiness. This strategy aims to secure early cash flows and mitigate execution risks, especially amidst high construction costs and interest rates. While new development is selective, it's pursued where valuation gaps justify the risks.
Recent transactions span diverse locations, from airport corridors to leisure destinations and metropolitan areas. The asset sizes vary, from smaller hotels to larger establishments. Notable deals include Blackstone's acquisition of a 50% stake in Taj Aravali Resort & Spa for $100-110 million in late December 2025.
