Global asset management giant Blackstone is reportedly exploring the acquisition of two prominent five-star hotels in India: the Hilton in Chennai and a partially constructed Marriott near Bengaluru airport. Each property is valued between ₹300-400 crore, signaling Blackstone’s intent to strengthen its presence in India’s burgeoning hospitality market.
Targeted Properties
The Hilton Chennai, a 204-room establishment owned by the Empee Group and fully managed by Hilton, has faced financial challenges in recent years, including cash flow issues and difficulties meeting debt obligations. The property is currently embroiled in insolvency proceedings, making it a potential acquisition target for Blackstone.
The second property under consideration is a 217-room Marriott hotel near Bengaluru airport, currently under construction by Twenty Fourteen Hotels India, a subsidiary of the Lulu Group. The hotel has been listed for sale with an expected valuation of ₹400 crore, presenting an opportunity for Blackstone to expand its footprint in the region.
Blackstone’s Strategic Moves in Hospitality
In September, Ventive Hospitality a joint venture between Blackstone and the Panchshil Group filed for an initial public offering aiming to raise up to ₹2,000 crore. Ventive Hospitality currently manages 11 operational assets under esteemed brands such as Marriott, Hilton, Minor, and Atmosphere. The potential acquisitions of the Chennai Hilton and Bengaluru Marriott would seamlessly integrate into Blackstone’s expanding portfolio, aligning with its strategy to capitalize on India’s growing hospitality sector.
Official Responses
Despite reports of these potential acquisitions, a Blackstone spokesperson stated, “Blackstone is not negotiating to acquire hotels in southern India.” This response suggests that while the firm may be exploring opportunities, no formal negotiations are currently underway.
Implications for India’s Hospitality Industry
Blackstone’s interest in these properties underscores the increasing appeal of India’s hospitality sector to global investors. The country’s robust economic growth and rising tourism have created a fertile ground for investment in high-end hospitality assets. Should these acquisitions proceed, they could set a precedent for further consolidation and investment in the industry, potentially elevating service standards and operational efficiencies.
