Singapore’s sovereign wealth fund GIC has agreed a strategic investment in the Indian hotel market, backing local partner SAMHI Hotels.
The pair plan to develop a number of upscale and premium hotels in India, exploiting the country’s burgeoning demand for hotel rooms. Up to USD300m could be deployed in joint venture developments for international brands.
Backing from an international investor
Under the deal the pair have agreed, GIC will acquire a 35% stake in three existing SAMHI businesses: Ascent Hotels, Inmar Tourism & Hotels, and SAMHI JV Business Hotels. The partnership will start with an initial portfolio of five existing SAMHI hotels, totalling over 1,000 rooms. These include the 301 room Hyatt Regency in Pune, Courtyard by Marriott and Fairfield by Marriott in Bengaluru, the Trinity Hotel in Bengaluru and a new Westin hotel in development in Bengaluru. The Trinity is planned to convert to Marriott’s Tribute Portfolio, as SAMHI migrates its properties over time to international brands.
“We are pleased to announce a significant milestone in the integration process for the ACIC portfolio,” said Ashish Jakhanwala, chairman and managing director of SAMHI Hotels. “Over the years, we have demonstrated our ability to drive performance and growth through turnarounds. With the proposed rebranding and conversion to management agreements, these hotels will be repositioned for better performance and improve their contribution to SAMHI. In addition to helping us strengthen our balance sheet, this partnership gives us tremendous firepower to grow our portfolio.”
In July 2024, SAMHI agreed a rebranding of two of its hotels to Marriott flags. A 217 room hotel in Pune will migrate to a Courtyard by Marriott hotel, operating under a new management agreement. That transition will include a hotel renovation, with work expected to be completed by the end of the 2026 business year.
A second property in Jaipur, with 114 rooms, will convert to a Tribute Portfolio hotels. The Tribute brand, which celebrates independent hotels with their own character, will align strongly with the demand in Jaipur, which is a major tourist and business destination. At the same time, SAMHI also agreed to convert four other hotel contracts from franchise to management agreements.
Currently, SAMHI’s portfolio extends to 31 operating hotels, totalling over 4,800 rooms. The portfolio has a presence in 13 Indian cities, including Bengaluru, Hyderabad, Chennai and Pune. SAMHI also has two hotels in development, with the projects in Kolkata and Navi Mumbai totalling 461 rooms.
Investors back Indian hotels
SAMHI was launched in 2010 with significant international backing. Since then, the company has grown and in 2023 it listed on the Indian market, in an IPO.
For GIC, the investment in SAMHI builds on an existing commitment to back hotel development in India. The investor has previously agreed a joint venture in the country with Indian Hotels, planning to acquire luxury and upscale hotels across the country.
