JW Marriott Bengaluru Expected to Generate Up to ₹1,300 Crore as Gstaad Hotels Pursues Asset Sale Under Insolvency

Gstaad Hotels, which is currently navigating bankruptcy resolution proceedings, is anticipated to raise as much as ₹1,300 crore through the divestment of its JW Marriott property situated on Vittal Mallya Road in Bengaluru. Industry sources revealed that this transaction could potentially emerge as one of the most significant single-asset hotel monetisations witnessed in India's hospitality sector to date.

The upscale hotel property has reportedly attracted over 40 expressions of interest from diverse bidders, including corporate conglomerates, private equity funds, and established hotel operators. This overwhelming response underscores the robust demand for premium branded hospitality assets strategically located in major metropolitan areas across the country.

Corporate Insolvency Proceedings and Creditor Claims

The hotel asset, held by Gstaad Hotels through a dedicated special-purpose vehicle (SPV), forms part of the broader Raheja promoter group's business ecosystem. The National Company Law Tribunal (NCLT) admitted the company into insolvency proceedings in July 2025 following a payment default amounting to approximately ₹666 crore.

Market observers noted that the insolvency case was initiated after Gstaad Hotels defaulted on a term loan that was originally disbursed by Piramal Capital & Housing Finance in 2017. The loan was subsequently transferred to Omkara Asset Reconstruction Company (ARC), which then moved the tribunal to recover outstanding dues.

Strong Operational Performance Attracts Premium Valuations

Financial sources indicated that the JW Marriott Bengaluru recorded an EBITDA exceeding ₹100 crore in the previous fiscal year. Industry analysts suggested that the property could command a valuation substantially higher than the debt recovery amount, driven by its operational profitability and strategic location.

Experts tracking the investment trends in Indian real estate observed a notable change in how promoters view branded hospitality assets. Such properties are increasingly being regarded as liquidity instruments rather than long-term portfolio holdings, reflecting evolving capital allocation strategies in the post-pandemic landscape.

Potential buyers are reportedly drawn to the asset's combination of brand continuity, prime urban location, established revenue streams, and underlying real estate value. The convergence of these factors positions the property as a compelling investment avenue under prevailing market dynamics, particularly for investors seeking exposure to India's booming hospitality sector.

Resolution Process Timeline and Creditor Coordination

The asset sale initiative follows an expression of interest (EoI) invitation that was issued in August 2025 by the resolution professional (RP) appointed to oversee the Corporate Insolvency Resolution Process (CIRP). The RP is tasked with maximising creditor recovery while ensuring compliance with insolvency and bankruptcy regulations.

The sixth meeting of the Committee of Creditors (CoC) convened on October 23, following which the resolution professional announced an updated CIRP timeline. According to the revised schedule, the final list of prospective resolution applicants (PRAs) was published, and the Information Memorandum (IM) along with the Request for Resolution Plans (RFRP) were issued on October 27, marking critical procedural milestones in the resolution framework.

Implications for India's Hospitality and Real Estate Sectors

Industry stakeholders believe this transaction could set a new precedent for branded hotel asset sales in India's leading urban markets. The deal is expected to catalyse similar transactions, including sale-leaseback arrangements, strategic divestments, and portfolio rebalancing initiatives as investors and hotel owners reassess asset strategies.

The anticipated sale aligns with broader trends observed across the sector, where major developers like Prestige Estate are expanding hospitality holdings and groups such as Macrotech Developers are acquiring premium hotel assets. Additionally, developers are launching ambitious hospitality ventures across key markets.

Beyond resolving lender claims within the insolvency framework, the anticipated sale is likely to reinforce investor confidence in income-generating commercial real estate assets, particularly those situated in Tier-1 cities with strong fundamentals and consistent demand drivers. This transaction also reflects the growing appeal of India's rapidly expanding REIT market and the increasing appetite for institutional investment in commercial properties.

Disclaimer: This news article is based on information available from market sources and public filings as of the date of publication. Readers are advised to independently verify details and consult financial or legal professionals before making investment or business decisions related to the subject matter discussed herein.