Singapore’s sovereign fund GIC will deepen its involvement in India’s hotel sector by forming a joint venture with SAMHI Hotels, a platform for hotel ownership and asset-management.
According to SAMHI Hotels’ regulatory filing on Thursday, the partnership has an equity investment plan up to $300,000,000. It will be focused on developing upscale hotels in key Indian cities.
As part of the agreement, GIC will acquire a 35% stake in three SAMHI subsidiaries — Ascent Hotels, Innmar Tourism and Hotels, and SAMHI JV Business Hotels — for INR 7.5 billion ($88 million), valuing the combined enterprise at INR 22 billion ($257.8 million).
The joint venture initially covers four properties: Hyatt Regency Pune, Courtyard by Marriott, and Fairfield By Marriott in Bengaluru. And Trinity Hotel in Bengaluru is also being converted to a Marriott Tribute portfolio hotel.
GIC has already acquired 8% of SAMHI Hotels.
GIC’s Earlier Hotel Partnership In India
GIC has a long history in the Indian hospitality industry. In 2019, the fund formed a partnership with Taj Hotels, Indian Hotels Company Ltd (IHCL), will launch a platform of $600 million to target the acquisitions of luxury and high-end hotels.
GIC held 70% and IHCL 30% of this joint venture. The pandemic delayed acquisitions for two years and extended the venture. However, no deals were completed during that time.
How SAMHI Uses the Capital
About INR 6 billion ($70.6m) of the capital invested in the SAMHI Partnership will be used to reduce debt and cover transaction costs. A further INR 1.4bn ($17.46m) will be used to develop a dual-branded Westin/Tribute Portfolio property at Bengaluru in the next two year.
SAMHI stated that the investment will significantly improve its balance sheet and fuel growth through its “category conversion” strategyThe focus of this project is to reposition hotel assets that are underperforming. The company expects to reduce debt by around INR 5.8 billion ($67.95 million) post-transaction, improving its net debt to EBITDA ratio and boosting profit after tax to an estimated 15–20%.
This does many things. It will reduce our debt at closing, which allows us to use our cash flow for future expansion. In addition, GIC and SAMHI are committed to growing this whole partnership to about $300 million,” said Ashish Jakhanwala, CEO & Managing Director of SAMHI Hotels, in a statement to CNBC.
The company stressed that the transaction would not reduce its control over any of its subsidiaries or its ownership below 50%. SAMHI’s majority ownership is held by institutional and public investors and there is no promoter.
SAMHI Financials
We have a proven track record in India’s hotel sector, and GIC offers us unparalleled institutional capabilities. This partnership will not only help us improve our balance sheet but also give us the firepower we need to expand our portfolio,” Jakhanwala said.
SAMHI operates 31 properties with 4,823 total rooms in 13 Indian cities, including the major markets of NCR (National Capital Region), Bengaluru, Hyderabad and Chennai.
SAMHI has sold its wholly-owned subsidiary Duet India Hotels, (Duet Chennai OMR), to Greenpark Hotels and Resorts in the first half of this year. The price was INR 5.3bn ($62.6m). The company posted a profit of INR 228,00,000 ($2.67m) in the third quarter of fiscal year 2025. This is a turnaround from a loss of INR 754,00,000 ($87m) in the same period last year.
Accommodations Stock Index Performance from Year to Date
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