South Delhi’s Five-Star Shock: How a Landmark Hotel Was Undervalued to Secure a Sweetheart Deal

In a dramatic twist in Delhi’s luxury hospitality sector, the iconic Hyatt Regency at Bhikaji Cama Place has become the center of a valuation controversy that has left public-sector lenders reeling. In 2021, the property was pegged at a robust INR 2,600 crore as its owners sought post-pandemic restructuring from banks. Fast forward three years, and the same hotel’s value plummeted to less than INR 1,000 crore when a one-time settlement was proposed to clear outstanding loans.

 

This steep undervaluation, described by insiders as a classic “heads I win, tails you lose” scenario, allowed the hotel’s owners to negotiate a far more favorable deal with lenders, effectively writing off a significant portion of the debt. The move has raised eyebrows across the financial sector, with questions swirling about the methods and motivations behind the diverging valuations in such a short span.

 

As this tale of financial maneuvering unfolds, it highlights the challenges banks face in safeguarding public funds and the high-stakes games that can play out behind closed doors in India’s luxury real estate market.

 

Source: The Economic Times