GIC and SAMHI Hotels Limited have entered into a strategic partnership to establish an investment platform (the “Joint Venture”) focused on upscale and higher-tier hotel assets in India.
Focused Growth in Key Markets
The partnership will begin with five of SAMHI’s hotels, which include over 1,000 rooms (the “Seed Assets”), valued at approximately INR 2,200 crores. GIC will acquire a significant minority stake in the underlying SPVs. The hotels are strategically located in high-density office micro-markets in Bengaluru and Pune, areas with favorable demand growth and high barriers to entry for new supply.
Seed Assets: A Strong Foundation
The Seed Assets include the following hotel properties:
- Hyatt Regency – Pune, Nagar Road – 301 rooms (with upcoming 22 apartments)
- Courtyard by Marriott – Bengaluru, ORR – 176 rooms
- Fairfield by Marriott – Bengaluru, ORR – 160 rooms
- Trinity Hotel – Bengaluru, Whitefield – 142 rooms (to be converted into Marriott’s Tribute Portfolio)
- Under development: 220-room Westin Hotel – being added to the existing Trinity Hotel in Bengaluru
Capital Investment and Strategic Growth
The investment will be utilized for capital expenditure, future acquisitions, and to reduce leverage across the hotels. SAMHI will manage all operational and development assets within the platform, further strengthening its market position.
Strengthening SAMHI’s Balance Sheet and Portfolio
Ashish Jakhanwala, CEO & Managing Director of SAMHI, expressed his enthusiasm about the partnership: “We are pleased to announce this transformational partnership with GIC. We have a strong track record in the hotel sector in India, and GIC brings unparalleled institutional capabilities for us to benefit from. In addition to helping us strengthen our balance sheet, this partnership gives us tremendous firepower to grow our portfolio.”
Morgan Stanley acted as the exclusive financial advisor to SAMHI on this transaction.
