Blackstone checks into Taj Aravali Udaipur, buys 50% stake for $100 million

The transaction was completed in late December, with New York-based Blackstone acquiring a stake in Mumbai-based real estate firm Ishaan Group. Currently, Indian Hotels Co., a Tata group company. Ltd (IHCL) operates the 180-key property through a management agreement.

One of the two people mentioned above, on condition of anonymity, said: “Udaipur has quickly emerged as a luxury tourist and high-profile wedding destination. Taj Aravali hotel is adding 75 more keys to it. The property will be upgraded to Taj Exotica Resort & Spa Aravali. The new rooms will be larger and more in the suite category.”

It currently has Taj Exotica Resort & Spa hotel properties in the Maldives and Goa.

Blackstone had invested six of its hotel assets in Ventive Hospitality Ltd, a hotel development and management company, in partnership with Pune-based real estate developer Panchshil Realty. Ventive Hospitality was listed on the stock exchange in December 2024.

“Post this, Blackstone is rebuilding its hospitality portfolio and eyeing new acquisition opportunities across cities,” the second person said. A Blackstone spokesman declined to comment, while an IHCL spokesman did not respond to questions. Ishaan Group could not be immediately reached.

Blackstone is currently in talks to acquire a significant stake in the Ritz Carlton hotel in Bengaluru from Nitesh Land.

It is a relatively new real estate bet for Blackstone in India, which operates in hospitality, commercial office, retail, logistics and warehousing.

India’s hospitality sector, especially the premium and luxury hotel segment, is experiencing increasing investor interest driven by various compelling factors that position it as an attractive investment asset class. The industry’s post-pandemic recovery trajectory has been strong, with strong operational metrics demonstrating resilience and growth potential.

“In 2025, the country’s hotel industry experienced strong growth driven by increased domestic tourism, government policy reforms and aggressive supply expansion, but was tempered by some incoming challenges and disruptions. More than 32,500 rooms were signed by September, with 70% of them targeting Tier II/III cities, taking regional occupancy to new highs,” said Gaurav Sharma, head of hotels and hospitality group at JLL, India, and senior director, hotel capital markets, Asia. JLL is a real estate consultancy.

Sharma added that institutional investors are increasingly allocating capital to hospitality assets, attracted by the sector’s ability to generate stable cash flows and tap into India’s growing domestic and international tourism market.

Hotel chains crossed the 200,000 branded room mark for the first time in 2025, adding 14,000 rooms to India’s inventory in 2024. By 2029, India is expected to add another 1,13,000 rooms to its inventory.