Indian Hotels Company Limited partners with GIC to invest in luxury hotel assets
The partnership is designed to boost "underperforming" hotels in India
The Indian Hotels Company Limited (IHCL) has created a platform with Singapore-based wealth fund GIC to acquire operational hotels in India’s luxury segment.
The platform, which is set to be worth 4000 crores (USD 600m), is set to be spread across three years and is designed to boost “underperforming” hotels in some of India’s key markets with IHCL’s “experience and capabilities”.
Details of the platform include IHCL pursuing acquisitions in an asset light format, with the equity contribution from IHCL at 30% and the remaining 70% being contributed by GIC.
The hotels acquired will be managed by IHCL under its various brands and the partnership was signed by IHCL managing director, Puneet Chhatwal, and GIC chief investment officer, Kok Sun Lee.
According to Chhatwal, the collaboration is in line with Aspiration 2022 and expects to acquire assets that need new ownership, branding and positioning.
“Our vision is to scale up and create greater enterprise value, as well as make IHCL South Asia’s most iconic and profitable hospitality company,” said Chhatwal.
Aspiration 2022 is based on the three-pronged strategy of re-structuring, re-engineering and re-imagining the IHCL’s portfolio. The strategy is aimed at margin enhancement and growth to fulfil its aspiration of becoming the most iconic and profitable hospitality company in South Asia.
Sun Lee said as a long-term investor, the company was confident on the outlook for India’s hospitality sector.
“GIC is pleased to partner with IHCL, a leading hotel owner and operator, to build a quality hospitality portfolio in key destinations across India,” said Sun Lee. “We look forward to pursuing attractive opportunities and capture the sector’s growth potential.”