GIC, Tata to invest $573m in India hotels

According to a regulatory filing, GIC will contribute 70% of the capital for the platform’s investments, while the balance will be committed by IHCL. The platform will target operational assets in the luxury and upscale market segments, including distressed and underperforming hotels that IHCL can turn around with its industry expertise.

IHCL will manage the acquisitions under its existing brands, which include marquee Indian upscale hotel chains such as Taj, Ginger, and Vivanta, along with ecotourism resort Ama Plantation Trails and themed resort chain SeleQtions. The company currently manages 179 properties in India, Africa, the UK, Sri Lanka, and Maldives; it also operates an airline catering business and a number of retail outlets in airports worldwide.

For the year ended March 2018, IHCL reported INR26.4 billion in revenue, up from INR24.6 billion the year before. Over the same period net profit grew from INR1.43 billion to INR1.48 billion.

“We are delighted to partner with GIC, one of the most reputable global investors,” said Puneet Chhatwal, managing director and CEO of IHCL, in a statement. “This collaboration is in line with Aspiration 2022 and our vision to scale up, create greater enterprise value and make IHCL 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.”

GIC claims to have more than $100 billion in assets under management worldwide, while independent assessments put its wealth at more than $390 billion. The Monetary Authority of Singapore recently announced it would transfer S$45 billion ($33 billion) in foreign exchange reserves to the sovereign wealth fund for deployment in longer-term investments.

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• Topics
• South Asia
• Consumer
• Buyout
• India
• GIC Private