GIC picks up 35% stake in three SAMHI owned Hotels in a JV deal

Singapore’s sovereign wealth fund GIC is picking up 35 per cent stake in three upscale properties owned by SAMHI Hotels for ₹752 crore.

The move will result in ₹580 crore debt reduction and 15-20 per cent upward impact on net profit, SAMHI Hotels said in a stock exchange filing.

The investment follows the establishment of a joint venture investment platform for upscale hotel assets in India. GIC is an investor in SAMHI Hotels too and has 8 per cent stake in the listed entity.

Currently SAMHI Hotels has a portfolio of 34 hotels including three under development spread across 13 cities.

As a part of transaction GIC will acquire stake in three SAMHI subsidiaries – Courtyard & Fairfield Marriott Bengaluru, Hyatt Regency Pune and recently acquired Trinity Hotel in Bengaluru’s Whitefield area.

The investment will be made in two phases. This includes upfront infusion of ₹603 crore that will be used for debt reduction across SAMHI’s hotel portfolio. The next tranche involves infusion of ₹149 crore over two years to part fund the capital expenditure for Westin/Tribute Portfolio dual branded hotel in Bengaluru.

“The transaction follows our stated strategy of capital recycling and will lead to significant reduction in debt and partnership with global investor of GIC’s stature for funding further growth,” SAMHI Hotels said. 

While GIC is forging stronger bonds with SAMHI Hotels, its previous plans to build an investment platform with Indian Hotels Company Limited failed to take off.

In 2019, GIC and IHCL had announced a ₹4,000 crore platform to acquire fully operational hotels in luxury and upscale segments. IHCL had then said the partnership would allow it to acquire hotels in asset light mode by contributing 30 per cent equity with the remainder coming from GIC.

Published on April 24, 2025