Blackstone Acquires 50% Stake in Taj Aravali Udaipur for $100 Million
Blackstone acquired a 50% stake in Taj Aravali Udaipur for $100 million from Ishaan Group, with plans to upgrade the 180-key property to Taj Exotica Resort & Spa Aravali and add 75 new suite-category rooms. This investment is part of Blackstone's strategy to rebuild its hospitality portfolio following Ventive Hospitality's December 2024 listing. India's hospitality sector is experiencing robust growth, with over 32,500 rooms signed by September 2025 and the industry crossing the 200,000 branded room milestone for the first time.
*this image is generated using AI for illustrative purposes only.
Blackstone has made a significant investment in India's luxury hospitality sector by acquiring a 50% stake in the Taj Aravali Udaipur hotel for $100 million. The transaction, which closed at the end of December, saw the New York-headquartered private equity giant purchase the stake from Mumbai-based realty firm Ishaan Group.
Property Details and Expansion Plans
The Taj Aravali Udaipur is currently a 180-key property operated by Indian Hotels Co. Ltd (IHCL), a Tata group company, through a management contract. The acquisition comes with ambitious expansion and upgrade plans that will transform the property's positioning in the luxury market.
| Parameter: | Details |
|---|---|
| Current Keys: | 180 rooms |
| Additional Keys: | 75 rooms |
| New Brand: | Taj Exotica Resort & Spa Aravali |
| Room Category: | Larger suites |
| Location Appeal: | Luxury tourism and wedding destination |
According to sources, Udaipur has emerged as a premier destination for luxury tourism and high-profile weddings, making it an attractive investment opportunity. The property will be rebranded as Taj Exotica Resort & Spa Aravali, joining existing Taj Exotica properties in Maldives and Goa. The new rooms will be larger and focus more on the suite category, catering to the luxury segment.
Blackstone's Hospitality Strategy
This acquisition represents part of Blackstone's broader strategy to rebuild its hospitality portfolio in India. The company previously consolidated six hotel assets into Ventive Hospitality Ltd, a hotel development and management business created in partnership with Pune-based real estate developer Panchshil Realty. Ventive Hospitality was successfully listed on the stock exchange in December 2024.
Following this listing, Blackstone is actively pursuing new acquisition opportunities across various cities. The company is currently in talks to acquire a significant stake in Bengaluru's Ritz Carlton hotel from Nitesh Land, indicating continued expansion plans in the premium hospitality segment.
Market Growth and Investment Climate
India's hospitality sector is experiencing unprecedented growth and investor interest, particularly in the premium and luxury segments. The sector's recovery trajectory post-pandemic has demonstrated remarkable resilience and growth potential, attracting institutional investors seeking stable cash flows.
| Metric: | 2024-2025 Performance |
|---|---|
| Rooms Signed by September: | 32,500+ |
| Tier II/III Focus: | 70% of new signings |
| Branded Rooms Milestone: | 200,000+ (first time) |
| Inventory Added in 2024: | 14,000 rooms |
| Projected Addition by 2029: | 113,000 rooms |
According to Gaurav Sharma, head of hotels & hospitality group at JLL India, the country's hotel industry experienced robust growth driven by surging domestic tourism, government policy reforms, and aggressive supply expansion. More than 32,500 rooms were signed by September, with 70% targeting Tier II/III cities, which boosted regional occupancy to new highs.
Industry Outlook
For the first time, hotel chains crossed the 200,000 branded room mark in 2025, with 14,000 rooms added to India's inventory in 2024. The sector's growth trajectory remains strong, with projections indicating India will add another 113,000 rooms to its inventory 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. For Blackstone, hospitality represents a relatively new real estate investment area in India, where the company traditionally operates across commercial office, retail, logistics, and warehousing sectors.
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