SAMHI Hotels and GIC, leading global institutional investor, have entered into a strategic partnership to establish an investment platform (the Joint Venture) for upscale and higher hotel assets in India. The partnership will be incubated with five of SAMHI’s hotels with more than 1,000 rooms (the Seed Assets) valued at around Rs 2,200 crore with GIC acquiring a significant minority stake in the underlying SPVs.
The hotels are located in high density office micro-markets in Bengaluru and Pune with favorable demand growth and high barriers to entry for new supply. The investment will be used for capital expenditure, future acquisitions and to reduce leverage across hotels. SAMHI will manage all the operational and development assets in the platform. With this investment, SAMHI will strengthen its balance sheet and grow its portfolio through its well tested ‘category conversion’ strategy.
Samhi Hotels acquires/builds primary hotels and thereafter renovates, rebrands and rerates the property and runs it.
