Singapore Wealth Fund Bets Big on India Again With $300 Million SAMHI Hotels Joint Venture
Singapore's sovereign wealth fund GIC is set to deepen its presence in India's hospitality sector through a new joint venture with hotel ownership and asset management platform SAMHI Hotels.
With an equity investment plan of up to $300 million, the partnership will focus on developing upscale and premium hotels across key Indian cities, according to a regulatory filing made by SAMHI Hotels on Thursday.
As part of the agreement, GIC will acquire a 35% stake in three SAMHI subsidiaries — Ascent Hotels, Innmar Tourism and Hotels, and SAMHI JV Business Hotels — for INR 7.5 billion ($88 million), valuing the combined enterprise at INR 22 billion ($257.8 million).
The joint venture will initially cover four existing properties: Hyatt Regency Pune; Courtyard by Marriott and Fairfield by Marriott in Bengaluru; and Trinity Hotel, also in Bengaluru, which is being converted into a Marriott Tribute Portfolio hotel.
GIC already holds an 8% stake in SAMHI Hotels.
This isn't GIC's first foray into India's hospitality space. In 2019, the fund partnered with Taj Hotels' parent company, Indian Hotels Company Ltd (IHCL), to launch a $600 million investment platform targeting the acquisition of luxury and upscale hotels.
GIC held a 70% stake in that joint venture, while IHCL held 30%. Although the pandemic stalled acquisitions and the venture was extended by two years, no deals were closed during that period.
Of the capital being infused into the SAMHI partnership, about INR 6 billion ($70.6 million) will go toward reducing debt and covering transaction expenses. Another INR 1.4 billion ($17.46 million) is earmarked for developing a dual-branded Westin and Tribute Portfolio property in Bengaluru over the next two years.
SAMHI said the investment would significantly strengthen its balance sheet and fuel expansion through its 'category conversion' strategy, which focuses on repositioning underperforming hotel assets. The company expects to reduce debt by around INR 5.8 billion ($67.95 million) post-transaction, improving its net debt to EBITDA ratio and boosting profit after tax to an estimated 15–20%.
'This does multiple things. It reduces our debt significantly on closing, which frees up a lot of our free cash for future growth. In addition, GIC and SAMHI are committed to growing this whole partnership to about $300 million,' said Ashish Jakhanwala, CEO & Managing Director of SAMHI Hotels, in a statement to CNBC.
The company emphasized that the transaction will not dilute its control or reduce its shareholding below 50% in any of the involved subsidiaries. SAMHI remains primarily owned by institutional and public shareholders and has no single identified promoter.
'We have a strong track record in the hotel sector in India, and GIC brings unparalleled institutional capabilities for us to benefit from. In addition to helping us strengthen our balance sheet, this partnership gives us tremendous firepower to grow our portfolio,' Jakhanwala added.
Currently, SAMHI operates 31 hotels with a total inventory of 4,823 rooms across 13 cities in India, including major markets such as NCR, Bengaluru, Hyderabad, Chennai, and Pune.
Earlier this year, SAMHI sold its wholly owned subsidiary Duet India Hotels (Duet Chennai OMR) to Greenpark Hotels and Resorts for INR 5.3 billion ($62.6 million). The company also posted a net profit of INR 228 million ($2.67 million) for third quarter of fiscal 2025, turning around a net loss of INR 744 million ($87 million) from the same period a year earlier.
What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.
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