Samhi Hotels and GIC join forces for ₹752 crore investment to reduce debt

24 Apr 2025 , 12:43 PM

Samhi Hotels Ltd. has made a strategic joint venture with Singapore sovereign wealth fund GIC. In the deal, GIC will invest ₹752 crore to take a 35% stake in three Samhi subsidiaries: Courtyard & Fairfield by Marriott Bengaluru ORR, Hyatt Regency Pune, and Trinity Hotel in Whitefield, Bengaluru.

The total enterprise value of the three hotel assets is ₹2,200 crore, marking the size of the transaction. Out of the ₹752 crore investment, ₹603 crore will be utilized upfront to reduce debt across Samhi’s portfolio and cover transaction-related expenses.

The remaining ₹149 crore will be deployed over the next two years to partly finance capital expenditure for the Westin / Tribute dual-branded hotel in Whitefield, Bengaluru.

The deal structure has both primary and secondary investments—whereas the primary funds take care of debt servicing and capex, the secondary part allows for GIC’s acquisition of stake in JV hotels and additional debt reduction in Samhi entities.

The action is a part of Samhi Hotels’ overall capital recycling strategy, where leverage is being brought down and strategic global partners are being onboarded to finance growth. Post-transaction, the company is looking at a net debt decrease of ₹580 crore, leading to a substantial strengthening of its financial ratios.

Samhi sees profit after tax (PAT) improving by 15–20% due to the transaction, based on reduced interest expenses and improved financial efficiency. With this transaction, the net debt-to-EBITDA level is projected to be under 3.5x at closing and is to be further decreased to below 3x within 12 months. The GIC alliance is likely to strengthen future cash flows, enabling growth while ensuring financial prudence.