Deals



Equity International To Invest $75m in Biz Hotel Chain SAMHI


Posted: 30th December 2011 14:03

Equity International (EI), an investment firm which backs real estate and hospitality ventures globally  has agreed a $75 million commitment to SAMHI, a developer and owner of hotels in India.  SAMHI has been sponsored by GTI Capital Group, an investment firm set up by the likes of Dabur Group’s Gaurav Burman and Dalmia Group’s Gaurav Dalmia.

The investment was made through EI’s Singapore operating company.  SAMHI’s board will include Equity International’s Christopher Fiegen and Vijay Jayaraman besides Ashish Jakhanwala, Manav Thadani, and Gaurav Burman and Gaurav Dalmia of GTI.

Equity International was established in 1999 by Sam Zell and Gary Garrabrant.  The firm has successfully raised over $2 billion and invested in 22 portfolio companies across 14 countries.

GTI Capital Group is a privately held investment firm founded by Gaurav Burman, Gaurav Dalmia, Jonathan Schulhof and Madhav Dhar.  GTI Capital has previously invested in companies such as Nova Medical and MRO Airworks. 

SAMHI is a hotel development and investment company which focuses on internationally branded hotels across key cities in the Indian sub-continent.

Recently SAMHI has forged a JV with Marriott International to develop Marriott-branded properties across the Indian subcontinent and is also working with other hotel operators and brands.

Ashish Jakhanwala heads the company as CEO, previously he has spearheaded the development of Accor’s hotel portfolio in India.   A statement by the firm stated; “India currently has 42 cities of over one million people, a number expected to grow to nearly 70 million by 2030. These cities are projected to generate 70 per cent of the country’s GDP. Travel and tourism are predicted to grow at rates similar to those of the broader economy and the hospitality sector is projected to double in size over the next seven years. Lastly, India has some of the lowest per capita hotel room penetration rates in the world while products targeting the value-conscious business traveller are significantly undersupplied.”

SAMHI received legal advice from Economics Law Practice, Advocates & Solicitors.  The team at ELP included Darshan Upadhyay, Pranay Bhatia and Jeet Sengupta assisting on various aspects of the transaction involving structuring, regulatory and tax.  ELP is a leading Indian law firm with offices in Mumbai, New Delhi, Pune and Ahmedabad.  

Legal Advisor To SAMHI

Economics Law Practice, Advocates & Solicitors

Associate Partner Darshan Upadhyay commented:

“This deal was very different as it involved combining fund benefits with a corporate structure”.

Mr. Upadhyay can be contacted on +91-22-66367000 or by email at DarshanUpadhyay@elp-in.com


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