Blackstone Eyes Bengaluru’s Luxury Crown: US Giant Set to Acquire 55% Stake in Ritz-Carlton from Nitesh Land for ₹600-700 Crore
₹1,200-1,400 Crore Valuation for Flagship Property; Deal Signals Global Interest in India’s Booming Hospitality Sector
Introduction
In a move that highlights the surging appeal of India’s luxury hospitality market, US-based private equity powerhouse Blackstone is poised to acquire up to 55% stake in the entity owning The Ritz-Carlton Bengaluru from Nitesh Land. Valued at ₹1,200-1,400 crore, the deal—expected to close this quarter—could see Blackstone shell out ₹600-700 crore for a controlling interest. Announced on November 10, 2025, this transaction underscores Blackstone’s aggressive expansion in Indian real estate, particularly in high-end hotels, amid a post-pandemic tourism boom. The property, a flagship of the Nitesh Group, represents one of India’s few independently owned five-star luxury assets, operated by Marriott International under the prestigious Ritz-Carlton brand.
The Deal at a Glance: Stake, Valuation, and Timeline
Blackstone will target a majority stake 51-55% in Nitesh Residency Hotel Ltd, the special-purpose vehicle owning the 277-room hotel on Bengaluru’s Residency Road. The acquisition values the asset at over ₹1,200 crore, reflecting its prime location and strong financials: EBITDA of ₹105 crore in FY25. Nitesh Land, founded by Nitesh Shetty, has been navigating financial headwinds, including past loan defaults that nearly led to a Yes Bank takeover in 2022. This sale provides much-needed liquidity while allowing Blackstone to deepen its hospitality portfolio.
The transaction, subject to regulatory approvals, is slated for completion by December 2025. Blackstone, which has invested over $10 billion in Indian real estate since 2007, sees this as a low-risk entry into Bengaluru’s thriving luxury segment, where occupancy rates hover at 75-80% and average daily rates exceed ₹15,000.
Ritz-Carlton Bengaluru: A Legacy of Luxury
Launched in 2014 as India’s first Ritz-Carlton, the hotel spans 3 acres in the heart of Bengaluru’s business district. Developed by Nitesh Estates at a cost of ₹770 crore, it features 277 opulent rooms, eight dining venues (including a rooftop bar and Indian restaurant), a 15,000 sq ft ESPA spa, and 21,000 sq ft of event space with a pillarless ballroom for 1,000 guests. Managed by Marriott, it competes with icons like The Leela, Oberoi, ITC, and Taj, drawing global travelers with its blend of modern amenities and local flair.
Nitesh Group’s venture into hospitality was ambitious: Citigroup Property Investors backed the initial $50 million investment in 2006, outbidding rivals for this landmark project. However, financial strains, including a ₹300 crore Yes Bank loan default in 2022, prompted the sale. The hotel’s FY25 EBITDA of ₹105 crore signals recovery, with room tariffs starting at ₹13,500-16,000 per night.
| Key Deal Metrics | Details |
|---|---|
| Stake Acquired | 51-55% in Nitesh Residency Hotel Ltd |
| Valuation | ₹1,200-1,400 crore |
| Cash Outlay | ₹600-700 crore |
| Timeline | Closure by Q4 2025 |
| EBITDA (FY25) | ₹105 crore |
| Rooms | 277 |
Sources: Economic Times and company profiles.
Blackstone’s Strategy: Betting Big on Indian Hospitality
Blackstone’s foray aligns with its aggressive India playbook, where hospitality investments have yielded 20-25% IRR. The firm already owns stakes in properties like The Postcard Hotel and Novotel in Mumbai, capitalizing on a market projected to grow to $125 billion by 2030. Bengaluru’s status as India’s Silicon Valley, with 15 million annual tourists, makes Ritz-Carlton a prime asset for tech-savvy corporate travelers.
This deal follows Blackstone’s $1.5 billion hospitality fundraise in 2024, targeting premium assets amid rising domestic leisure travel (up 25% YoY). By acquiring a majority stake, Blackstone gains operational influence while retaining Marriott’s management expertise, potentially unlocking value through renovations or expansions.
Nitesh Land’s Pivot: From Distress to Exit
For Nitesh Land, the sale marks a strategic exit from a troubled asset. Once hailed as Bengaluru’s real estate mogul, founder Nitesh Shetty’s group faced setbacks post-2018, including loan defaults and project delays. Ritz-Carlton, developed with $125 million investment, was a flagship but became a liability amid the 2022 banking crisis. Proceeds from the deal could fund Nitesh’s pivot to residential and commercial projects, like Nitesh Napa Valley in Yelahanka.
Neither party responded to queries, but sources confirm the transaction’s advanced stage.
Market Implications: A Signal for Luxury Assets
This acquisition signals renewed foreign interest in Indian hospitality, where luxury segment growth outpaces economy hotels at 12% CAGR. It could spur similar deals, like potential sales of The Leela or Taj properties, as owners seek capital amid rising construction costs. For Bengaluru, it reinforces the city’s status as a hospitality hotspot, with 50+ new hotels planned by 2027.
Investors view Blackstone’s move positively, with hospitality REITs like Embassy Office Parks seeing 2% gains post-announcement. The deal also highlights Marriott’s brand strength, as Ritz-Carlton commands 20% premium rates over competitors.
Conclusion: A Luxe Legacy in New Hands
Blackstone’s potential takeover of Ritz-Carlton Bengaluru is more than a transaction—it’s a testament to India’s evolving luxury landscape. Valued at ₹1,200-1,400 crore, this flagship asset transitions from Nitesh Land’s portfolio to global stewardship, promising enhanced standards and expansion. As Blackstone fortifies its Indian empire, the deal heralds a
