The Indian Hotels Company has announced a three-year strategic partnership with the sovereign wealth fund of Singapore, GIC.
With funds of up to US$600 million, the new platform will be used to acquire fully operational hotels in the luxury, upper upscale and upscale segments in India.
The organisation will look at potential hotel assets primarily located in key lodging markets in the country.
The mandate is to acquire fully operational hotels which will also include distressed or underperforming hotels that can be turned around utilising the capabilities of Indian Hotels Company.
Commenting on the signing of this agreement, Puneet Chhatwal, chief executive of Indian Hotels Company, said: “We are delighted to partner with GIC, one of the most reputable global investors.
“This collaboration is in line with Aspiration 2022 and our vision to scale up, create greater enterprise value and make Indian Hotels Company south Asia’s most iconic and profitable hospitality company.
“Through this platform, we expect to acquire strategic and marquee assets that need new ownership, branding and positioning.”
Indian Hotels Company will be able to pursue acquisitions in an asset light format, with the equity contribution from the company at 30 per cent and the balance contributed by GIC.
Any hotels acquired will be managed by Indian Hotels Company under its various brands and complement the company’s current growth aspirations via management contracts.
Kok Sun Lee, chief investment officer of GIC Real Estate, said: “GIC is pleased to partner with IHCL, a leading hotel owner and operator, to build a quality hospitality portfolio in key destinations across India.
“As a long-term investor, we are confident in the outlook of India’s hospitality sector.
“We look forward to working closely with established partners such as Indian Hotels Company to pursue attractive opportunities and capture the sector’s growth potential.”