Bengaluru, which termed the Silicon Valley of India, is expected to see a greater interest for hotel assets from private equity (PE) players, high-net-worth individuals (HNIs) and distressed asset funds as they capitalise on opportunities to invest which is expected to be valued at a discount to their pre-Covid-19 values.
The industry, however, expects sale transactions will likely only occur once travel restrictions are further eased and site visits are facilitated. The city is said to have limited distressed asset sales.
“Owing to the ownership profile, a significant portion of hotel owners in Bengaluru are long-term holders with strong balance sheets and are better placed to weather out the pandemic when compared to other markets in India,” said JLL’s India Hotel Recovery Guide- Bengaluru.
However, a few distressed sales may occur in the market from owners that are unable to service their existing debt. Some owners, who had already taken