PE-backed Samhi invests in Accor-owned Indian hotel chain
Samhi Investments has acquired a 60% stake in Barque Hotels, the company that owns 15 Formule 1 hotels in India, from French hospitality group Accor.
The deal value was not disclosed but Samhi has announced it will be investing $40-50 million to complete existing projects. Of the 15 properties in various stages of development, two are already operational with a further hotel due to open by the end of the year. Another five hotels are planned to open in 2013.
With this acquisition Samhi now has a total of 21 hotel projects, open or under development, across nine Indian cities.
Accor will retain its 40% stake in the budget hotel chain and will continue to operate it under long-term management contracts. It will also retain the rights to own and develop further Formule 1 projects in India
Founded in October last year, Samhi has $100 million in funding from Sam Zell-led Equity International and GTI Capital Group.
Samhi also has a joint venture with Marriott International to develop Marriott branded hotels in India.
"Formule 1 is a strong product and brand positioned to capture the large volume price sensitive Indian traveller and Accor as a hotel company is well known for its expertise in this segment globally and this makes our investment very attractive," Ashish Jakhanwala, founder and CEO of Samhi, said in a statement.
Accor's interests in India also include an investment fund set up in June 2010 with with local partner InterGlobe Enterprises.
Earlier this year, the French group, which owns the Pullman, Sofitel and Novotel brands, sold its budget hotel business in the US and Canada - Motel 6 and Studio 6 - to The Blackstone Group for $1.9 billion.
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