Shares of SAMHI Hotels Ltd. surged 4.7% to Rs 182.13 in early trade on April 24 after the company announced a strategic joint venture with Singapore’s sovereign wealth fund GIC. The transaction, valued at Rs 2,200 crore in enterprise value, aims to create an investment platform focused on upscale and premium hotel assets in India.
GIC to invest Rs 752 crore in two phases
The deal will see GIC acquire a 35% stake across three of SAMHI’s key subsidiaries, structured through an upfront infusion of Rs 603 crore to reduce debt and Rs 149 crore toward capital expenditure for the Westin-Tribute Portfolio project in Bengaluru’s Whitefield. The transaction is expected to result in a debt reduction of Rs 580 crore and a 15–20% uplift in pro forma PAT.
The three assets involved in the JV are:
-
Courtyard & Fairfield by Marriott, Bengaluru ORR – 336-room dual-branded hotel.
-
Hyatt Regency, Pune – 301-room hotel with 71 serviced apartments.
-
Trinity Hotel, Bengaluru Whitefield – 142 rooms, to be rebranded under Marriott’s Tribute and expanded under the Westin brand.
Strong financial impact and growth pipeline
With this capital recycling strategy, SAMHI’s net debt is set to fall below Rs 1,470 crore, bringing its net debt-to-EBITDA ratio to under 3.5x, and targeting sub-3.0x within a year. The company also expects a significant reduction in annualized interest costs, boosting operational cash flow.
The platform deal with GIC aligns with SAMHI’s broader asset-light growth and portfolio optimization strategy, following previous partnerships with Goldman Sachs and IFC.
Updated stock details
-
Current Price: Rs 182.13
-
Day’s Change: +Rs 8.18 (+4.70%)
-
Market Cap: Rs 4,029 crore
-
Day Range: Rs 180.50 – Rs 186.80
-
P/E Ratio: 80.19
-
Year Range: Rs 121.10 – Rs 225.48
FAQs
What caused SAMHI’s stock to rise today?
The company announced a Rs 2,200 crore JV with GIC, triggering bullish investor sentiment.
How much will GIC invest?
Rs 752 crore in two tranches – Rs 603 crore upfront and Rs 149 crore for capital expenditure.
Which hotels are included in the JV deal?
Courtyard & Fairfield (Bengaluru), Hyatt Regency (Pune), and Trinity Hotel (Bengaluru).
How will this deal impact SAMHI’s financials?
Expected debt reduction of Rs 580 crore and improved profit margins with interest cost savings.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
