GIC, leading global institutional investor, and SAMHI Hotels have entered into a strategic partnership to establish an investment platform 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
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 Seed Assets include the following hotel assets:
- The 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 which will be converted to as part of Marriott's Tribute Portfolio
- Under development 220 room Westin Hotel, which is being added to the existing Trinity Hotel in Bengaluru
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.