SAMHI Hotels surged 7.7% after announcing a ₹2,200 crore upscale hotel JV with GIC. The deal includes five properties with ₹752 crore investment, ₹580 crore debt reduction, and 15–20% PAT growth. GIC will acquire a 35% stake in three SPVs.
SAMHI Hotels witnessed strong intraday momentum following the announcement of its strategic partnership with Singapore- based GIC. The stock opened higher at ₹185 compared to the previous close of ₹173.95. After the strong opening, it continued its upward move, hitting an intraday high of ₹193 - a surge of ₹13.42 or 7.71% from the previous session’s close.
GIC, a global institutional investor, has partnered with SAMHI Hotels to establish a joint venture focused on upscale and higher-category hotels in India. The platform will be incubated with five SAMHI hotel assets comprising over 1,000 rooms, valued at approximately ₹2,200 crore.
GIC will acquire a significant minority stake in the special purpose vehicles (SPVs) holding these assets. The seed assets include:
The properties are situated in high-demand commercial areas in Bengaluru and Pune with limited new supply.
GIC will acquire a 35% stake in three of SAMHI’s subsidiaries that own Courtyard and Fairfield by Marriott Bengaluru ORR, Hyatt Regency Pune, and the Trinity Hotel in Bengaluru, for a total investment of approximately ₹752 crore. Of this, around ₹603 crore will be used to reduce debt across SAMHI’s portfolio and a small amount towards deal expenses, with the remaining ₹149 crore earmarked for capital expenditure over the next two years, specifically for the Westin/Tribute Portfolio project in Bengaluru.
This strategic move is aligned with SAMHI’s capital recycling strategy, enabling a projected ₹580 crore reduction in debt and an estimated 15–20% increase in PAT (Profit After Tax). SAMHI emphasised that the deal demonstrates its continued ability to attract high-quality institutional investors, adding GIC to a roster that includes Sam Zell, GTI, IFC, Goldman Sachs, and Asiya.
Management Commentary:
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.
GIC is a global investment firm established in 1981 to manage Singapore’s foreign reserves with a long-term, disciplined investment approach across asset classes like equities, fixed income, real estate, private equity, and infrastructure. Headquartered in Singapore, GIC has over 2,300 professionals in 11 global financial cities and investments in over 40 countries.
SAMHI Hotels Ltd is a branded hotel ownership and asset management platform in India with a portfolio of 31 hotels and 4,823 rooms across 13 cities. It operates under long-term partnerships with global hotel brands including Marriott, IHG, and Hyatt.
Looking at the stock performance, it has performed well in the last month, surging 22.71%, while on a year-to-date basis, it is 6.43% down.
Disclaimer: The article is for informational purposes only and not investment advice.
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