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Singapore's sovereign wealth fund GIC has partnered with Indian hotel asset manager SAMHI Hotels to create a new USD 300 million hospitality investment platform. The collaboration, initiated earlier this week, aims to develop upscale hotel properties across India, starting with a portfolio of five assets in Bengaluru and Pune. GIC will acquire a 35% stake in three subsidiaries of SAMHI, while the investment will be used both to pare down SAMHI's existing debt and finance a new hotel development. This marks a major step towards consolidating premium hotel assets in India's growing hospitality sector.
GIC, Singapore's sovereign wealth fund, partnered with SAMHI Hotels earlier this week to launch a USD 300 million investment platform aimed at India's high-end hospitality industry. The new venture will initially be seeded with five hotel assets valued at approximately INR 2,200 crore. Under the agreement, GIC is set to acquire a significant minority stake in the special purpose vehicles (SPVs) that own these hotel properties. Advertisement
The portfolio includes more than 1,000 rooms spread across key cities such as Bengaluru and Pune. The assets in the venture comprise the Hyatt Regency Pune with 301 rooms, Courtyard by Marriott Bengaluru with 176 rooms, Fairfield by Marriott Bengaluru with 160 rooms, Trinity Hotel Whitefield (which has 142 rooms and is planned to be rebranded under Marriott's Tribute Portfolio), and a 220-room Westin Hotel currently under development.
GIC's investment amounts to INR 7.52 billion (approximately USD 88 million). Of this, around INR 6.03 billion will be utilised to reduce SAMHI's outstanding debt, while INR 1.49 billion will be directed towards constructing the new Westin property in Bengaluru. Following the completion of this transaction, SAMHI expects its net debt, which stood at INR 20.64 billion at the end of 2024, to reduce by INR 5.8 billion, significantly strengthening its balance sheet.
SAMHI Hotels will continue to manage both the operational hotels and the under-construction properties within the platform. The company intends to use the proceeds from the transaction for further capital expenditures, expansion of its hotel portfolio, and to deleverage existing hotel assets, ensuring a stronger financial foundation going forward.
Morgan Stanley served as the financial advisor to SAMHI Hotels for this transaction. This alliance also comes at a time when India's hotel industry is witnessing strong momentum, driven by rising domestic tourism, business travel, and international arrivals.
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