SAMHI Hotels share price ends over 10% higher: Company to sell 35% stake in three subsidiaries to GIC for ₹752 crore; key details

The two entities have entered into a strategic partnership to establish an investment platform (the Joint Venture) for upscale and higher hotel assets in India.

Key details you need to know

• The transaction involves three of SAMHI's subsidiaries that own Courtyard & Fairfield by Marriott Bengaluru ORR, Hyatt Regency Pune, and the recently acquired Trinity Hotel in Bengaluru Whitefield.

• GIC to acquire 35% stake in these three subsidiaries against an investment of nearly ₹7,520 million (~₹752 crore).

The partnership will be incubated with five of SAMHI’s hotels with more than 1,000 rooms (the “Seed Assets”) valued at nearly 2,200 crore, with GIC acquiring a significant minority stake in the underlying SPVs. The hotels are located in high-density office micro-markets in Bengaluru and Pune with favourable demand growth and high barriers to entry for new supply.

The Seed Assets

• Courtyard & Fairfield by Marriott, Bangalore (ORR);

• Hyatt Regency Pune (Nagar Road);

• Westin / Tribute Portfolio Bangalore (Whitefield).

The investment will be used for capital expenditure, future acquisitions, and to reduce leverage across hotels. SAMHI will manage all the operational and development assets in the platform.

With this investment, SAMHI will strengthen its balance sheet and grow its portfolio through its well-tested ‘category conversion’ strategy.

Ashish Jakhanwala, CEO & Managing Director, SAMHI, said, “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.”

Morgan Stanley acted as the exclusive financial advisor to SAMHI on this transaction.

About SAMHI Hotels

SAMHI is a prominent branded hotel ownership and asset management platform in India. The company has a long-term management arrangement with three of the established and well-recognised global hotel operators, namely, Marriott, IHG, and Hyatt. It has a portfolio of 31 operating hotels comprising 4,823 rooms and has a diverse geographic presence in 13 cities across India, including the National Capital Region (NCR), Bengaluru, Hyderabad, Chennai, and Pune.

GIC is a leading global investment firm established in 1981 to secure Singapore’s financial future.