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 that own these hotels.
The transaction involves three key SAMHI subsidiaries that own the Courtyard and Fairfield by Marriott in Bengaluru ORR, Hyatt Regency in Pune, and the recently acquired Trinity Hotel in Whitefield, Bengaluru. GIC will pick up a 35% stake in these subsidiaries with a total investment of approximately Rs 752 crore. Of this, around Rs 603 crore will be infused upfront to reduce SAMHI’s debt and cover transaction-related costs, while the remaining Rs 149 crore will be invested over the next two years to support the development of a dual-branded Westin / Tribute Portfolio hotel at the Whitefield site.
The proceeds from the investment will be used for capital expenditure, strategic acquisitions, and further deleveraging of SAMHI’s hotel portfolio. SAMHI will continue to manage both operational and development assets under the platform. The company also reiterated its commitment to its successful ‘category conversion’ strategy, which focuses on repositioning assets to higher-performing segments. Upon closing, SAMHI expects to significantly reduce its debt by around Rs 580 crore and boost profitability, with a projected 15–20% uplift in profit after tax (PAT).
GIC, established in 1981, manages Singapore's foreign reserves and is renowned for its long-term, disciplined investment strategy across global asset classes.
SAMHI is a prominent branded hotel ownership and asset management platform in India with an institutional ownership model, experienced leadership and professional management team. SAMHI has long-term management arrangement with three of the established and well recognized global hotel operators, namely, Marriott, IHG and Hyatt. SAMHI has a portfolio of 31 operating hotels comprising 4,823 rooms and has a diverse geographic presence in 13 cities across India, including National Capital Region (NCR), Bengaluru, Hyderabad, Chennai and Pune.
On a consolidated basis, SAMHI Hotels reported net profit of Rs 22.79 crore in Q3 December 2024 as against net loss of Rs 74.42 crore in Q3 December 2023. Net sales rose 10.43% year-on-year to Rs 295.77 crore in Q3 December 2024.