GIC Joins SAMHI Hotels for Strategic Investment in India's Hospitality The funds raised from this partnership will be used to finance capital expenditures, future acquisitions, and reduce leverage across these hotels.
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GIC, an institutional investor, has entered into a strategic partnership with SAMHI Hotels Limited, a prominent branded hotel ownership and asset management platform in India. The collaboration will create a joint venture (JV) focused on upscale and high-end hotel assets in the country.
The partnership will kick off with five of SAMHI's existing hotels, referred to as "Seed Assets," totaling over 1,000 rooms. These assets, valued at approximately INR 2,200 crores, are located in prime office micro-markets in Bengaluru and Pune—regions that are witnessing significant demand growth while maintaining high barriers to entry for new competition. GIC will acquire a significant minority stake in the underlying special purpose vehicles (SPVs) holding these hotels.
The Seed Assets include:
- Hyatt Regency - Pune, Nagar Road (301 rooms, with 22 upcoming apartments)
- Courtyard by Marriott - Bengaluru, ORR (176 rooms)
- Fairfield by Marriott - Bengaluru, ORR (160 rooms)
- Trinity Hotel - Bengaluru, Whitefield (142 rooms, set to be converted into Marriott's Tribute Portfolio)
- Westin Hotel (220 rooms, under development as part of the Trinity Hotel expansion in Bengaluru)
The funds raised from this partnership will be used to finance capital expenditures, future acquisitions, and reduce leverage across these hotels. SAMHI, which has a proven track record in the Indian hospitality sector, will manage the operational and development activities of the assets in the JV. This partnership enables SAMHI to strengthen its balance sheet and further expand its portfolio through its category conversion strategy.
Ashish Jakhanwala, CEO and Managing Director of SAMHI, said, "This transformational partnership with GIC strengthens our balance sheet and provides us with substantial resources to scale our operations and grow our portfolio."
Morgan Stanley acted as the exclusive financial advisor to SAMHI on this transaction.
