Chennai: GRT Hotels & Resorts buys luxury brand Asiana Hotels for Rs 153 crore

CHENNAI: The city-based GRT Hotels & Resorts has acquired the upscale Asiana Hotels for Rs 153 crore, following a long-drawn legal battle. The landmark Asiana Hotel, located in Chennai’s IT corridor, in Semmencherry on Old Mahabalipuram Road (OMR), is a 5-star luxury property launched by real estate developer and former AIADMK MP KP Munusamy, who is also the promoter of Coimbatore’s GBJ Hotels.

Alagurajan Suruliandi, co-founder of the 179-key Asiana Hotels, on 2.25 acres, has confirmed to DT Next that the transaction has been completed and that the GRT group has begun the renovation work, estimated to be in the Rs 20-30 crore range.

This acquisition is expected to complement and bolster GRT’s existing portfolio, which includes the Radisson Blu-branded GRT Grand and other premium and mid-scale properties across south India.

Shri Sriharan, co-founder-CEO of Asiana Hotels, along with Suruliandi incorporated the hospitality venture in 2005. Three years later, the luxury hospitality brand was launched.

GBJ Hotels owned and operated the flagship Asiana Hotel. With its upscale positioning and strategic location, it has been a sought-after asset in the hospitality circuit since the financially-stressed entity defaulted on loans to banks and financial institutions between 2015 and 2018.

The property was declared as a non-performing asset (NPA).

In 2019, Edelweiss Asset Reconstruction Company acquired a major share of the hotel’s distressed debt from lenders. In 2020–2021, insolvency proceedings were initiated and the asset was brought under the Insolvency and Bankruptcy Code (IBC).

Multiple players expressed interest.

Malabar Hotels Pvt Ltd, through Edelweiss ARC, emerged as the lead bidder and proposed a resolution plan. However, the deal got mired in litigation. In 2022–2023, rival parties challenged the bidding process and asset control, stalling the transaction. Matter escalated through multiple legal forums. The matter reached the Supreme Court, which ultimately upheld Edelweiss ARC’s right to sell and recover dues.

Meanwhile, GRT Hotels had entered the fray as an interested purchaser. Now, with the Supreme Court’s green signal, GRT Hotels has succeeded in sealing the deal, edging out rival bidders and strengthening its presence in the south Indian luxury hospitality segment.

In its April 2025 order, the apex court has said, “We are informed that sale certificate has been issued in favour of GRT Hotels by Edelweiss ARCL… We clarify not having examined the claim of Edelweiss ARCL that the debt is now somewhere near Rs 186 crore+ and that only Rs 153 crore could be recovered in course of the process of bidding that was undertaken pursuant to our order dated 28th March, 2025. All questions, except the sale which stands confirmed, are left open for the parties to agitate before an appropriate forum in accordance with law, if so advised.”