Goldman Sachs invests $66M in SAMHI Hotels

Goldman Sachs has invested Rs 441 crore ($66 million) in PE-controlled hospitality firm SAMHI Hotels Pvt Ltd, it said on Monday.

SAMHI Hotels plans to acquire more ready or under construction assets with the fresh money infusion.

SAMHI was founded by Ashish Jakhanwala and Manav Thadani. Sam Zell-led Equity International, GTI Capital Group and International Finance Corporation own a controlling stake in the company.

Two years ago, SAMHI raised around $21 million from the World Bank arm IFC through convertible debentures. It also raised Rs 126 crore from founders and existing investors like GTI Capital and Equity International. In 2012, SAMHI had raised $100 million from Equity International and GTI Capital. Of this, $75 million came from Equity International.

This year, the hotel investment firm acquired two hotels and opened four properties. The company has 25 hotels with 3,900 rooms managed by five brands including Marriott, Starwood Hotels, Accor Hotels and Hyatt in its portfolio, according to its website.

Last week, it acquired the 156-room Ganesh Meridian from Ahmedabad-based Shree Siddhi Group.

The five-star property is a little over one-year old and will be rebranded with an international upscale brand shortly, according to a press statement. SAMHI acquired the hotel through wholly owned unit Caspia Hotels.

The hotel will be SAMHI’s third property in Ahmedabad, after Four Points by Sheraton and Formule 1. Opened in May 2014, Ganesh Meridian has two restaurants as well as health and fitness facilities such as pool, spa and gym. The hotel is part of a mixed-use development project.

For Goldman Sachs this adds to its bustling PE investment practice in India. Last July, it invested in Delhi-based Azure Hospitality Pvt Ltd, which runs a pan-Asian casual dining chain under the Mamagoto brand.

It also signed big cheques in the real estate space with $150 million commitment to buy a minority stake in Piramal Realty, the privately held real estate arm of Ajay Piramal-led diversified firm Piramal Enterprises Ltd.

Goldman Sachs also signed an agreement with public listed real estate developer Nitesh Estates Ltd to jointly invest up to $250 million in income-generating commercial assets.

These apart, it also backed Pepperfry among other Indian firms.

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