In a significant move in the hospitality sector, Hansoge Enterprises has sold a boutique hotel in Bangalore for a whopping $18 million (Rs 1.5 billion). This deal marks a notable transaction in the bustling city's real estate market.

The hotel, a mid-scale property boasting 175 rooms, is conveniently located near the Bengaluru International Airport in Karnataka. With an impressive size of over 150,000 square feet, the hotel is expected to be fully operational by the end of this year.

Previously, the hotel was part of a portfolio held by JC Flowers, a renowned asset reconstruction company (ARC), along with other parties. JC Flowers Asset Reconstruction had made headlines in 2022 when it acquired non-performing assets from Yes Bank, taking on stressed loans amounting to Rs 480 billion.

The sale of this boutique hotel in Bangalore signifies a strategic move for both Hansoge Enterprises and the unnamed ultra-high-net-worth individual who purchased the property. According to insiders familiar with the deal, the transaction was carefully structured to meet the business objectives of both the sellers and the buyer. The buyer, in particular, is keen on establishing a strong presence in this vibrant metro area.

Colliers India, a diversified real estate services provider, played a pivotal role in facilitating this transaction. Piyush Gupta, the managing director of capital markets and investment services at Colliers India, expressed satisfaction with the successful closure of the deal, attributing it to the team's deep understanding of the various challenges involved.

This recent sale comes on the heels of another notable development in Karnataka's hospitality industry. In October last year, the state welcomed Planetree The Fern Resort & Spa. Located in Chikmagalur, this resort features 70 rooms equipped with various amenities, further enriching Karnataka's hospitality landscape.