Publish Date : 20-Aug-2014
International Finance Corporation (IFC), the private sector lending arm of the World Bank, has made an announcement on its plan to make US$ 21 million investments in SAMHI Hotels to help the hotel company boost its capacity in the inexpensive and mid-market hotel segment.
With this move, the IFC has pierced into the Indian hotel sector. The IFC is to do the investment via compulsorily convertible debentures. The Corporation has revealed in its statement that the investment will facilitate India to augment its capacity in the affordable and mid-market hotel segment, generate jobs, and encourage designing and construction of energy-efficient hotel in the country.
According to the global donor, the IFC’s investments in SAMHI Hotels will facilitate generation of 2,600 new jobs throughout the hotel operator’s nationwide projects. The latest funding of SAMHI will help it will enlarge its portfolio through development of greenfield hotels and via acquisition of properties in Tier-I and II cities in India. The company operates hotels in Greater Noida, Ahmedabad, Bengaluru, Hyderabad and Pune.
Director for Manufacturing, Agribusiness, and Services, Asia Pacific, IFC, Vipul Prakash stated, "IFC’s investment is an affirmation of the support it provides to affordable hotels in countries with increasing domestic travel and rapidly growing middle classes.” The IFC official added, "This project will generate jobs and create business opportunities for small and medium enterprises, contributing to economic diversification and sustainable growth.”
IFC’s worldwide investment portfolio comprising more than 270 hotel projects is valued at US$ 2 billion. Managing Director & CEO of SAMHI Hotels Ashish Jakhanwala stated, “This investment is an effort to strengthen the tourism infrastructure in India.” He continued, “Besides providing long-term financing, IFC will help us formulate environmental and social standards, and adopt green building design principles.”
SAMHI Hotels, which was set up in 2011, recently has won the Excellence in Design for Greater Efficiencies (EDGE) certification from the IFC for its hotel project in Bengaluru. The EDGE provides its assistance to the developers to consider lucrative ways to incorporate green elements into their building designs.
SAMHI Hotels, one of the first hotel ownership and asset management focused companies in India, owns, develops, and buys reputed hotel properties together with numerous operators. The hotel company has forged partnership with international hotel operators like Marriott, Starwood Hotels, Accor, and Hyatt to handle its hotel portfolio comprising 25 hotels, offering more than 3,700 rooms.
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