SAMHI Hotels Shares Shoot Up 13 Percent on Rs 2,200 Crore JV with GIC
After SAMHI Hotels announced a strategic relationship with global investment firm GIC to establish a Rs 2,200 crore investment platform for upscale and higher-end hotel assets in India, the company's shares jumped 13 percent to an intraday high of Rs 196.90 on the BSE on Thursday.
The alliance, which is set up as a joint venture, will start with five SAMHI Hotels-owned hotel properties that together have more than 1,000 rooms.
GIC will purchase a sizeable minority interest in the underlying special purpose entities (SPVs) that hold these assets as part of the agreement.
The chosen "Seed Assets" are situated in important high-density office micromarkets in Pune and Bengaluru, which have limited fresh supply and advantageous demand dynamics.
These assets are estimated to be worth over Rs 2,200 crore in total.
According to SAMHI Hotels, the money will be utilized for future acquisitions, capital expenditures, and portfolio-wide leverage reduction.
SAMHI will remain in charge of overseeing the platform's assets' development and operation.
“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,” said Ashish Jakhanwala, CEO & Managing Director of SAMHI.
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Through its distinctive "category conversion" approach, which focuses on repositioning and upgrading hotel properties to international standards, SAMHI is anticipated to accelerate its growth and further improve its balance sheet as a result of this agreement.