Goldman Sachs picks up significant minority stake in India’s Samhi Hotels for $66m

A Goldman Sachs sign is seen over the company's trading stall on the floor at the New York Stock Exchange, March 21, 2013. REUTERS/Brendan McDermid

Goldman Sachs Group Inc. has invested Rs.440 crore for a significant minority stake in Indian hotel investment and development firm Samhi Hotels, the companies said in a statement on Tuesday.

Samhi, which operates 10 hotels and is developing 16 more, will use the money to grow its portfolio to about 30 to 35 properties, the company’s chief executive officer Ashish Jakhanwala told Reuters.

Its portfolio is leased to operators such as Marriott International, Starwood Hotels, Accor SA and Hyatt International.

A gradual recovery in Asia’s third-largest economy is boosting demand for hotel rooms.

Hotel occupancy in India in the year to 31 March 2015 rose to 60.3%, the highest in four years. Revenue per available room, a measure of profitability, grew for the first time since 2010-2011, showed a report by consultant HVS.

“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 $240 million in equity since 2011 and has focussed on acquiring economy and mid-scale hotels and refurbishing or rebranding them.

Samhi declined to specify the exact stake that the Goldman Sachs investment had bought. Samhi’s biggest investor remains Equity International, founded by billionaire real estate mogul Sam Zell, which has invested $90 million in Samhi.

Goldman Sachs has invested more than $2.5 billion in the country since 2006, mainly in the infrastructure and energy sectors.

Also Read: India: SAMHI Hotels acquires Ganesh Meridian from Shree Siddhi Group

 Reliance Mutual Fund increases stake in Tata Group’s Indian Hotels to 8%

Reuters

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.