Accor and InterGlobe have announced the establishment of an investment fund for a portfolio of India hotel assets in which an affiliate of Pacifica Partners (Pacifica) will take a significant stake of up to 36% equity in the fund, subject to requisite regulatory approvals.
Accor and InterGlobe will each hold 32% equity in the fund.
Pacifica Partners is the asset manager for the joint venture hotel investment company established between an affiliate of GIC Real Estate Pte- the real estate arm of the Government of Singapore Investment Corporation, and Host Hotels and Resorts, a premier lodging and real estate company listed on the New York Stock Exchange and the largest lodging real estate investment trust in the world.
The fund will initially hold the assets for seven hotels in India which are currently jointly owned by Accor and InterGlobe, representing 1,750 rooms with a value of approximately $325 million on the completion of the hotels.
The hotel developments are all in key gateway cities of India with prime locations within these markets, including at the recently opened Delhi International Airport, one of Asia’s newest and largest airports. All seven hotels will open between 2011 and 2013.
The fund provides a new growth platform with investment focused predominantly in the upper midscale and upscale segments. New assets may be acquired into the fund in the future.
In the five years since entering India with a joint venture arrangement with InterGlobe Enterprises, Accor has opened eight hotels. In India, Accor is deploying hotel brands ranging from luxury through to budget offering the most comprehensive portfolio of any international hotel operator in the country today.
