Latest news with #AshishJakhanwala
Yahoo
25-04-2025
- Business
- Yahoo
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. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance. Read the full methodology behind the Skift Travel 200. Get breaking travel news and exclusive hotel, airline, and tourism research and insights at
Time of India
25-04-2025
- Business
- Time of India
GIC partners with SAMHI Hotels for $300 million hospitality platform in India
NEW DELHI: SAMHI Hotels , a hotel ownership and asset management platform, and GIC , a global institutional investor, have partnered to create a high-end hotel investment platform in India, seeded with five assets valued at approximately ₹2,200 crore. The venture is backed by an equity infusion plan of up to $300 million, with GIC acquiring a significant minority stake in the asset-owning special purpose vehicles SPVs. The five seed assets comprise over 1,000 rooms across Bengaluru and Pune . Properties include Hyatt Regency Pune (301 rooms), Courtyard by Marriott Bengaluru (176 rooms), Fairfield by Marriott Bengaluru (160 rooms), Trinity Hotel Whitefield (142 rooms, to be converted under Marriott's Tribute Portfolio), and a 220-room Westin Hotel under development. SAMHI will manage both operational and under-development assets within the joint venture. Funds will be deployed towards capital expenditure, strengthening its balance sheet portfolio expansion, and deleveraging existing hotel assets. Ashish Jakhanwala CEO & managing director, SAMHI said, "In addition to helping us strengthen our balance sheet, this partnership gives us tremendous firepower to grow our portfolio." Morgan Stanley acted as the financial advisor to SAMHI on this transaction.
New Indian Express
24-04-2025
- Business
- New Indian Express
SAMHI to sell 35% stake for Rs 752 crore in three subsidiaries to GIC Singapore
NEW DELHI: Singapore's sovereign wealth fund, GIC, is acquiring a 35% stake in three subsidiaries of SAMHI Hotels -- Courtyard & Fairfield by Marriott (Bengaluru ORR), Hyatt Regency Pune and the recently acquired Trinity Hotel in Whitefield, Bengaluru-- for an investment of Rs 752 crore. The total enterprise value of these three subsidiaries stands at Rs 2,200 crore. SAMHI will be mainly utilising the sale proceeds for paying off its debts. "Rs 603 crore from the deal will be used upfront to reduce the debt across the company's portfolio and a small amount will be used towards deal expenses," the company said. The balance, Rs 149 crore, will be used over next two years to part fund the capital expenditure for the Westin Tribute Portfolio Bengaluru Whitefield dual branded hotel. SAMHI expects a Rs 580 crore reduction in debt and a 15-20% upward impact on profit after tax on account of this transaction. 'The transaction follows our stated strategy of capital recycling and will lead to significant reduction in debt and partnership with a global investor of GIC's stature for funding further growth. Net Debt-to-EBITDA at closing < 3.5X; accelerated path to < 3.0X in the next 12 months without compromising on growth,' stated the company. The company also said the partnership will be incubated with five of SAMHI's hotels with more than 1,000 rooms (the seed assets) valued at Rs 2,200 crore. The hotels include the Hyatt Regency Pune, with 301 rooms (and upcoming 22 apartments), the Courtyard by Marriott - Bengaluru, ORR with 176 rooms, the Fairfield by Marriott - Bengaluru, ORR with 160 rooms, the Trinity Hotel - Bengaluru, Whitefield with 142 rooms which will be converted as part of Marriott's Tribute Portfolio and an under development 220 rooms Westin Hotel, which is being added to the existing Trinity Hotel in Bengaluru. 'We are pleased to announce this transformational partnership with GIC. 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," said SAMHI Hotels MD and CEO Ashish Jakhanwala, in a media release on Thursday.
Time of India
24-04-2025
- Business
- Time of India
SAMHI Hotels and GIC announce a JV for upscale and higher hotel assets in India
Live Events Global institutional investor GIC and branded hotel ownership and asset management platform SAMHI Hotels have entered into a 'strategic partnership' to establish an investment platform for upscale and higher hotel assets in India. The transaction involves three of SAMHI's subsidiaries that own Courtyard & Fairfield by Marriott Bengaluru ORR, Hyatt Regency Pune and recently acquired Trinity Hotel in Bengaluru Whitefield. GIC will acquire a 35% stake in these three subsidiaries against an investment of Rs 752 crore. In disclosures to the BSE, the company said Rs 603 crore will be used upfront to reduce the debt across SAMHI's portfolio and a small amount will be towards deal expenses. Rs 149 crore will be used over next two years to part fund the capital expenditure for the Westin Tribute Portfolio Bengaluru Whitefield dual branded hotel. SAMHI said it expects a Rs 580 crore reduction in debt and a 15-20% upward impact to profit after tax on account of this company said the partnership will be incubated with five of SAMHI's hotels with more than 1,000 rooms (the seed assets) valued at Rs 2,200 hotels include the the Hyatt Regency Pune, with 301 rooms (and upcoming 22 apartments), the Courtyard by Marriott - Bengaluru, ORR with 176 rooms, the Fairfield by Marriott - Bengaluru, ORR with 160 rooms, the Trinity Hotel - Bengaluru, Whitefield with 142 rooms which will be converted as part of Marriott's Tribute Portfolio and an under development 220 rooms Westin Hotel, which is being added to the existing Trinity Hotel in said the investment will be used for capital expenditure, future acquisitions and to reduce leverage across hotels. It will manage all the operational and development assets in the platform.'We are pleased to announce this transformational partnership with GIC. 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," said MD and CEO Ashish Jakhanwala Morgan Stanley acted as the exclusive financial advisor to SAMHI on this transaction.
Economic Times
24-04-2025
- Business
- Economic Times
SAMHI Hotels shares shoot up 13% on Rs 2,200 cr JV with GIC
SAMHI Hotels surged 13% after announcing a Rs 2,200 crore joint venture with GIC to invest in upscale hotel assets. The partnership begins with five key properties in Bengaluru and Pune. Funds will be used for expansion and debt reduction, with SAMHI continuing operational control and strategic growth execution. Tired of too many ads? Remove Ads Hyatt Regency, Pune (301 rooms, with 22 additional apartments under development) Courtyard by Marriott, Bengaluru, Outer Ring Road (176 rooms) Fairfield by Marriott, Bengaluru, ORR (160 rooms) Trinity Hotel, Bengaluru, Whitefield (142 rooms, to be converted under Marriott's Tribute Portfolio) A 220-room Westin Hotel under development in Bengaluru, being added to the existing Trinity property Tired of too many ads? Remove Ads Shares of SAMHI Hotels shot up by 13% to an intraday high of Rs 196.90 on the BSE on Thursday after the company announced a strate gic partnership with global investment firm GIC to set up a Rs 2,200 crore investment platform for upscale and higher-end hotel assets in partnership, structured as a joint venture , will begin with five hotel assets owned by SAMHI Hotels with a combined inventory of over 1,000 part of the deal, GIC will acquire a significant minority stake in the underlying special purpose vehicles (SPVs) housing these selected 'Seed Assets' are located in key high-density office micro-markets in Bengaluru and Pune, which offer favorable demand dynamics and limited new supply. The hotels include:The total value of these assets has been pegged at approximately Rs 2,200 crore. SAMHI Hotels stated that the funds will be used for capital expenditure, future acquisitions, and reducing leverage across its portfolio. SAMHI will continue to manage the operational and developmental aspects of the assets within the read: HUL Q4 Results: PAT rises 4% YoY to Rs 2,493 crore, revenue up 2% 'We are pleased to announce this transformational partnership with GIC. 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,' said Ashish Jakhanwala, CEO & Managing Director of Stanley acted as the exclusive financial advisor to SAMHI on this partnership is expected to further strengthen SAMHI's balance sheet and accelerate its growth through its signature 'category conversion' strategy, which focuses on repositioning and upgrading hotel properties to global standards.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
