In a significant move underscoring robust investor confidence in India's premium hospitality market, global investment giant Blackstone Group has purchased a 50% stake in the Taj Aravali Resort & Spa, Udaipur, for an estimated $100-110 million. The transaction, finalized in late December 2025, involves the New York-based firm acquiring the stake from Mumbai's Ishaan Group.
A Strategic Entry into Luxury Hospitality
This acquisition marks a strategic expansion for Blackstone in India, where it is already a dominant force in commercial office, retail, and logistics real estate. The hospitality sector represents a relatively new but high-potential bet for the firm in the country. The 180-key property is currently operated by The Indian Hotels Company Ltd (IHCL), a Tata Group subsidiary, under a management contract.
According to sources familiar with the details, the hotel is set for a major upgrade and expansion. An additional 75 keys will be added, and the entire property will be rebranded as the Taj Exotica Resort & Spa Aravali. "The new rooms would be larger, more in the suite category," a source revealed, highlighting Udaipur's rapid rise as a premier destination for luxury tourism and high-profile weddings.
Rebuilding a Hospitality Portfolio
This deal is part of Blackstone's broader strategy to rebuild its hospitality investment portfolio in India. Previously, the firm had consolidated six of its hotel assets into Ventive Hospitality Ltd, a listed entity created in partnership with Pune's Panchshil Realty. Following that move, Blackstone is now actively seeking new acquisition opportunities across key Indian cities.
The firm's growing interest in the sector is further evidenced by its ongoing talks to acquire a significant stake in Bengaluru's Ritz Carlton hotel from Nitesh Land. A Blackstone spokesperson declined to comment on the Udaipur deal, while IHCL and Ishaan Group did not respond immediately to queries.
India's Booming Hotel Industry Attracts Capital
Blackstone's investment aligns with a wave of institutional capital flowing into India's hospitality sector, particularly the luxury segment. The industry has demonstrated a strong post-pandemic recovery, driven by surging domestic tourism, government reforms, and aggressive supply expansion.
Gaurav Sharma of JLL India noted that in 2025, over 32,500 rooms were signed by September, with 70% targeting Tier II and III cities. For the first time, branded hotel rooms in India crossed the 200,000 mark in 2025, with 14,000 rooms added in 2024 alone. Projections suggest an addition of 1,13,000 more rooms by 2029.
"Institutional investors are increasingly allocating capital to hospitality assets, attracted by the sector's ability to generate stable cash flows and benefit from India's growing domestic and international tourism market," Sharma added. This transaction at the Taj Aravali is a clear testament to this compelling investment thesis.
