SAMHI Hotels Limited (BSE: 543984, NSE: SAMHI), a leading branded hotel ownership and asset management platform, has entered into a strategic partnership with GIC, a leading global institutional investor, to establish an investment platform for upscale and higher-tier hotel assets in India. This partnership, aimed at expanding SAMHI’s portfolio, involves an equity investment plan of up to $300 million.

The joint venture will initially be incubated with five of SAMHI’s existing hotels, referred to as the "Seed Assets," which together represent more than 1,000 rooms and are valued at approximately Rs 22 billion. GIC will acquire a significant minority stake in the underlying Special Purpose Vehicles (SPVs) associated with these hotels. The Seed Assets are located in high-demand office micro-markets in Bengaluru and Pune, which are known for favourable demand growth and high barriers to entry for new supply.

The hotels included in the Seed Assets are:

Hyatt Regency, Pune, Nagar Road — 301 rooms (with 22 upcoming apartments) Courtyard by Marriott, Bengaluru, ORR — 176 rooms Fairfield by Marriott, Bengaluru, ORR — 160 rooms Trinity Hotel, Bengaluru, Whitefield — 142 rooms (to be converted to Marriott's Tribute Portfolio) Westin Hotel (under development) — 220 rooms, to be added to the existing Trinity Hotel in Bengaluru

The capital from this investment will be used for capital expenditure, future acquisitions, and reducing leverage across the hotels. SAMHI will continue to manage all operational and development assets within the platform.

This partnership provides SAMHI with the financial strength to grow its portfolio and strengthen its balance sheet, in line with its successful ‘category conversion’ strategy. Ashish Jakhanwala, CEO and Managing Director of 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.”