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Defying the broader market weakness, Spice Lounge Food Works Ltd once again surged and locked in a 5% upper circuit during Friday’s session, continuing its extraordinary momentum in 2025. The multibagger hospitality stock — already up more than 1,038% in the past year — has become one of the standout performers in India’s hospitality and nightlife sector. The sharp rise comes after the company unveiled aggressive expansion plans in luxury hospitality and experiential entertainment. Earlier this week, the board approved the acquisition of Rightfest Hospitality LLP and signalled interest in taking a majority stake in Blackstone Management LLC, marking a major strategic pivot beyond its core food services business. Big Bet on Premium Hospitality & Nightlife In a board meeting held on October 28, Spice Lounge Food Works cleared a proposal to acquire 100% stake in Rightfest Hospitality LLP within one year. Rightfest operates high-end lifestyle venues including SALUD in Goa and XORA Bar & Kitchen in Hyderabad, both prominent in India’s evolving nightlife and premium dining scene. The company described the acquisition as a key move toward scaling its footprint in luxury hospitality, citing rising demand for upscale dining and entertainment in metro cities and tourist hubs. Spice Lounge Food Works also authorised Chairman Mohan Babu Karjela to evaluate a potential majority stake purchase in Blackstone Management LLC. He will spearhead negotiations and due-diligence alongside legal and financial advisors. Management said the expansion aligns with its vision of transforming into a diversified hospitality and experiential entertainment company, tapping into a rapidly expanding premium lifestyle market. Stock Performance Spice Lounge Food Works opened at ₹53.50 on the BSE and hit an intraday high of ₹54.99, triggering the upper circuit despite a weak broader market tone. 1-week gain: ~25%3-month gain: ~45%1-year gain: ~1,038% The stock has been a consistent outperformer, driven by investor optimism around its growth strategy and expansion into premium hospitality ventures. What’s Driving the Rally? Analysts say the company’s shift into luxury dining, nightlife, and asset-light entertainment formats comes at a time when India’s social and tourism economy is booming. Rising disposable income, urban lifestyle shifts, and record domestic tourism trends are fuel factors for re-rated hospitality plays this year. At the same time, its steep rally raises questions around sustainability and valuation, with investors closely watching execution ability on acquisitions and new business lines. (Disclaimer: This article is meant solely for informational and educational purposes. The views and opinions expressed are those of individual analysts or brokerage firms and do not reflect the stance of Times Now. Readers are advised to consult certified financial experts before making any investment decisions.)
