India: Samena Capital picks up 35% stake in Bloom Hotels for $15m

Visual from Samena Capital website

Private equity firm Samena Capital has acquired 35 per cent stake in hospitality chain Bloom Hotels, operated by Imperativ Hospitality Pvt Ltd, making an investment of Rs 100 crore ($15.2 million).

The Series B round, which values Bloom at Rs 330 crore ($50 million), will help the company to roll out its brands across all Indian cities, according to an official statement.

As part of the pan-India rollout, in February this year, Bloom Hotels opened two properties in Calangute, Goa. It now plans to launch hotels in 20 other locations across the country, from Hyderabad to Kochi to Mumbai. The hospitality chain already has presence in Bengaluru, New Delhi, Gurgaon and Goa.

“The expansion coincides with India becoming the world’s third-largest airline market. Demand growth is also being driven by the emerging middle income group and growing discretionary consumption,” Bloom said in a release.

Asia, Middle East and North Africa-focused Samena Capital has so far raised more than $1.5 billion of capital since 2008 and has returned $615 million to investors from over 45 full and partial exits, according to the company’s website. It currently manages around $1 billion across three primary investment strategies: private equity, direct investments, and credit.

The firm is currently deploying from its third fund, which reached its initial closing in April 2017 at $351 million. It has set a final close target at $700 million, scheduled to be achieved 18 months after the initial closing.

The Indian hospitality sector has been gaining traction with investors. Gurugram-based hotel chain Oyo is reportedly looking to raise $500-800 million in fresh funding, six months after the company raised its last round of $250 million, mainly from Japanese investment giant SoftBank.

Recently, another hotel chain Lemon Tree Hotels Ltd made its debut on the Indian stock exchanges, where its Rs 1,039 crore initial public offering (IPO) was subscribed 119 per cent during the three-day share sale that closed on 28 March.

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