Global investment firm Goldman Sachs has invested US$ 66 million for a minority stake in Indian hotel investment and development firm Samhi Hotels, the companies said in a statement.
Ashish Jakhanwala, CEO of Samhi informed that the firm will use the money to grow its portfolio to about 30 to 35 properties. Samhi currently operates 10 hotels and is developing 16 more. Its portfolio is leased to operators such as Marriott International, Starwood Hotels, Accor SA and Hyatt International.
A report by consultant HVS showed that hotel occupancy in India in 2015 rose to 60.3 per cent, the highest in four years. Revenue per available room, a measure of profitability, grew for the first time since 2010-2011.
“There will be continued opportunities for acquisitions, given several hotels need fresh capital to relieve them of financial stress of past few years,” said Jakhanwala.
Samhi has raised US$ 240 million in equity since 2011 and has focussed on acquiring economy and mid-scale hotels and refurbishing or rebranding them.
Samhi has not specified the exact stake that the Goldman Sachs investment had bought. Samhi’s biggest investor remains Equity International which has invested US$ 90 million in the firm.
Goldman Sachs is said to have invested more than US$ 2.5 billion in the country since 2006, mainly in the infrastructure and energy sectors.
(Reuters)