In a move poised to reshape India’s hospitality investment landscape, SAMHI Hotels has announced a strategic partnership with GIC, Singapore’s sovereign wealth fund, to establish a joint venture platform focused on upscale and higher-category hotel assets in India. The landmark transaction, valued at ~INR 752 crore, marks one of the most significant cross-border investments in India’s hospitality sector this year.
This collaboration underscores SAMHI’s ongoing strategy of capital recycling, operational consolidation, and strategic deleveraging, while positioning the company for an aggressive, capital-backed growth trajectory.
🔹 SAMHI Hotels and GIC Deal at a Glance
GIC will acquire a 35% equity stake in three of SAMHI’s key hotel-owning subsidiaries:
- SAMHI JV Hotels – Owner of Courtyard & Fairfield by Marriott, Bengaluru ORR
- Ascent Hotels – Owner of Hyatt Regency, Pune
- Innmar Tourism & Hotels – Owner of Trinity Hotel, Bengaluru Whitefield, to be rebranded as a dual-branded Westin and Tribute Portfolio hotel
The combined enterprise value of these subsidiaries is estimated at INR 2,200 crore, with the joint venture platform being incubated with more than 1,000 rooms across high-density, demand-rich office micro-markets.
Of the INR 752 crore investment:
- INR 603 crore will be infused upfront — primarily for debt repayment and transaction-related expenses
- The remaining INR 149 crore will be deployed over the next two years to fund the capex of the Westin/Tribute Portfolio hotel in Whitefield, Bengaluru
🔹 Financial Impact & Capital Structure
SAMHI anticipates a debt reduction of approximately INR 580 crore upon transaction closure, bringing down its net debt-to-EBITDA from 4.9x to below 3.5x, with a targeted trajectory toward sub-3.0x over the next 12 months.
Furthermore, this restructuring is expected to boost the company’s Profit After Tax (PAT) by 15%–20% on a pro forma basis, and significantly enhance free cash flow through lower annual interest costs — estimated to drop from INR 201.5 crore to INR 140 crore.
According to the company’s filings, INR 115 crore from GIC’s investment constitutes secondary share purchases, which will further help SAMHI retire shareholder loans and strengthen group-level liquidity.
🔹 The Seed Assets
The seed portfolio comprises hotels located in Bengaluru’s Outer Ring Road (ORR) and Whitefield, and Pune’s Nagar Road, all of which are business-heavy corridors with high barriers to entry for new supply. Notably:
- The Courtyard & Fairfield Bengaluru ORR is a dual-branded 336-room hotel situated amidst 90+ million sq. ft. of office space.
- Hyatt Regency Pune is a 301-room asset near the airport with additional serviced apartments and significant MICE capabilities.
- Trinity Hotel, Whitefield, post-rebranding and expansion, will feature 362 rooms (142 existing + 220 new under the Westin brand).
🔹 Long-Term Partnership for Scalable Growth
Speaking to media, Ashish Jakhanwala, CEO of SAMHI, emphasized the transformational nature of this deal: “GIC brings institutional credibility and deep capital pools. Together, we aim to scale this platform to USD 300 million (~INR 2,566.58 crore) or more, focusing on both acquisitions and new developments.”
He noted that this partnership builds on SAMHI’s successful history with high-profile institutional investors, including Sam Zell, GTI, IFC, Goldman Sachs, and Asiya Capital.
🔹 Strategic Advisors and Regulatory Roadmap
Morgan Stanley acted as the exclusive financial advisor for the transaction. The deal remains subject to shareholder approval and regulatory clearances.
SAMHI has reaffirmed its commitment to its “category conversion” strategy, wherein underperforming or mid-scale properties are repositioned into higher-performing segments under globally recognized brands like Marriott, Hyatt, and IHG.
🧭 Final Verdict
This transaction is a textbook example of strategic capital structuring, combining operational scale with institutional discipline. With the Indian hospitality sector rebounding post-pandemic, SAMHI is positioning itself at the intersection of urban business travel, premium branding, and institutional capital. The deal significantly reduces financial leverage while planting seeds for sustained, asset-backed growth.
In the long term, if executed well, this JV with GIC could serve as a case study in how domestic hotel platforms can effectively institutionalize, de-risk, and scale operations in partnership with global capital. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.