SAMHI Hotels and GIC Forge ₹2,200 Crore Strategic Partnership for Upscale Hotel Platform

SAMHI Hotels Ltd has announced a landmark strategic partnership with Singapore’s sovereign wealth fund GIC to establish an investment platform focused on upscale and premium hotel assets in India. The deal, valued at approximately ₹2,200 crore, will see GIC acquiring a significant minority (35%) stake in three key SAMHI subsidiaries, which collectively own five prominent hotels with over 1,000 rooms in Bengaluru and Pune.

 

Key Highlights:

 

The partnership will be seeded with five hotels: Hyatt Regency Pune (301 rooms + 22 upcoming apartments), Courtyard by Marriott Bengaluru ORR (176 rooms), Fairfield by Marriott Bengaluru ORR (160 rooms), Trinity Hotel Whitefield Bengaluru (142 rooms, to be rebranded under Marriott’s Tribute Portfolio), and an under-development 220-room Westin Hotel at the Trinity site.

 

GIC’s investment totals ₹752 crore, with ₹603 crore allocated upfront to reduce SAMHI’s debt and cover transaction costs. The remaining ₹149 crore will fund capital expenditure for the dual-branded Westin/Tribute Portfolio hotel in Whitefield over the next two years.

 

The transaction is expected to reduce SAMHI’s debt by nearly ₹580 crore, significantly strengthening its balance sheet. The company anticipates a 15–20% uplift in profit after tax and improvement in its net debt-to-EBITDA ratio from 4.9x to 3.5x, and further to 3x within a year.

 

SAMHI will continue to manage all operational and development assets within the platform, leveraging its successful ‘category conversion’ strategy to reposition assets into higher-performing segments.

 

The partnership provides SAMHI with enhanced capital firepower for future acquisitions, capital expenditure, and further deleveraging, positioning the company for sustainable growth in India’s expanding hospitality sector.

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

 

Source: Economic Times Hospitality, VCCircle, Business Standard, Angel One, Moneycontrol