Kotak Realty Fund, a private equity asset manager focused on real estate, has invested more than Rs 1,100 crore in Bharat Hotels, the owner of The LaLiT brand, which operates luxury hotels, resorts, and palaces across the country.

Kotak Realty Fund's total investments in FY23 surpassed Rs 5,500 crore, a record for any fiscal year.

After more than 14 years, the fund, which is part of the Kotak Mahindra Group's alternative asset management and investment advisory business Kotak Investment Advisors, has made an investment in a hospitality company. Prior to this, it had made an investment in Lemon Tree Hotels' parent company in 2007-08.

The fund made a five-year debt investment in Bharat Hotels, which the company will use to repay its existing lenders, which include public and private sector banks.

"The undersupply in luxury hospitality and rising demand particularly after the pandemic has improved the business confidence in this segment.”This investment helps with debt refinancing and frees up capital for growth," said Vikas Chimakurthy, CEO of Kotak Realty Fund.

Bharat Hotels operates twelve luxury hotels, palaces, and resorts, as well as two mid-market segment hotels under The LaLiT Traveller brand, with a total of 2,261 rooms in prime locations in Delhi, Udaipur, Mumbai, Bengaluru, Jaipur, Goa, and Srinagar.