Why Hospitality Sector Is Hot With Private Equity Funds
A story on private equity money chasing hotel deals in India in Express Hospitality.
WestBridge Capital Partners has made a significant equity investment in the Royal Orchid Hotels and acquired 10 per cent stake in the group for Rs 250 million, ICICI Venture Funds also acquired 26 per cent stake in the equity of the Hyderabad-based Viceroy Hotels. Joining the bandwagon is Sarovar Hotels which has inked an agreement with US-based Bessemer Venture Partners and New Vernon Advisory Service Pvt Ltd to help fund the expansion of its ‘Hometel’ brand of budget hotel - amount to the tune of Rs 100 crore. Similarly, leading Indian hotel companies such as the Bharat Hotel and Oberoi Group of Hotels are also in talks with leading international funding companies to future growth plans.Besides financial institutions like TFCI, IDBI, ICICI, Indian Bank, etc, Indian hoteliers now also have access to international funds like the US$ 150 million Brooke International Fund, US$ 50 million Dalmia Capital Fund, US$ 100 million Indian Real Estate Opportunities Fund, the Merlion Fund of Temasek Holdings, Tishman & Speyers, JP Morgan Partners, Blackstone Group, Warburg Pincus and the fund available from US-AEP for those developing environmentally sensitive hotels.
I am sure hospitality sector is a real money spinner with new markets being created by launching quality budget hotels and eco-friendly resorts chains by smart entrepreneurs. There is a debate on how the sector is ripe for PE investments in Seriously Clueless, Anand Sridharan’s blog. Anand’s Bessemer Venture Partners invested in Sarovar Hotel’s Hometel.
Related:
“Tiger” Ramesh Looking For VC Funds For His “Cicada” Ecotourism Resorts Chain
Bessemer Venture Partners And New Vernon Invest $8.5 Million In Sarovar Hotels
ICICI Venture Picks Up 26% For Rs 100 Crore In Hyderabad’s Viceroy Hotels
Luxembourg VC, Capital Tree Group, Plans A Hotel JV, An IT Project And Wants To Acquire An Airline
