CARE Ratings Reaffirms 'CARE BBB+; Stable' Rating for Bestech Hospitalities Private Limited

Rating Reaffirmation

CARE Ratings reaffirmed the long-term rating of Bestech Hospitalities Private Limited's bank facilities at CARE BBB+; Stable, citing the company's long-standing experience in hospitality, operational synergies from its partnership with Radisson Hotel Group, and favourable hotel locations.

Operational Performance and New Asset

The rating reflects stable operational performance in FY25 and 9MFY26, aided by stable occupancy levels, improvement in average room rates, and strong demand, with further improvement expected from the commencement of operations at Radisson RED Indore. The property became operational from January 2026.

Portfolio Overview

Bestech Hospitalities Private Limited is the flagship hospitality entity of the Delhi-based Bestech Group, which has a long operational track record. The group, promoted by Dharmendra Bhandari and Sunil Satija, has been present in the hospitality industry since 2002.

The Bestech hospitality portfolio comprises five operational hotels with an aggregate inventory of around 771 keys across key urban markets including Indore, Nagpur, Mohali, and Noida. BHPL directly operates Radisson Blu Indore (200 keys), Radisson RED Indore (115 keys) and Radisson Blu Nagpur (214 keys), while its subsidiaries operate Radisson Red Mohali (154 keys) and Radisson Noida (88 keys).

All the group's hotels operate under management contracts with the Radisson Hotel Group, affording access to strong brand recognition, marketing network, and operational expertise of the Radisson portfolio, including Radisson Blu, Radisson, and Radisson RED.

Financial Position and Leverage

The company had around ₹34 crore of cash and bank balances as of February 28, 2026. BHPL's financial risk profile remains moderate owing to the capital-intensive nature of the hospitality business and the debt-funded development of hotel properties. The company carries a moderately leveraged capital structure with total debt remaining sizeable relative to its net worth, although leverage has gradually moderated in recent years supported by improvement in profitability and internal accruals.

Rating Factors and Context

While rating strengths derive from the promoters' long-standing experience in hospitality, operational synergies with Radisson Hotel Group, and favourable hotel locations, rating strengths are partially offset by moderate financial risk profile and BHPL's exposure to inherent cyclicality and competition associated with the hotel industry.