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Last Updated : May 15, 2019 01:57 PM IST | Source:

Exclusive | Goldman Sachs-led SAMHI Hotels looks to raise about Rs 2,000cr via IPO in H2 2019

SAMHI Hotels, founded by Ashish Jakhanwala and Manav Thadani in 2010, has 4,315 rooms across 29 hotels in 14 cities

Ashwin Mohan @ashwinmohansays

SAMHI Hotels, which specialises in the development, acquisition and ownership of branded hotels like Marriott International, Sheraton Hotels & Resorts and Hyatt Hotels Corporation, has initiated preliminary discussions with merchant bankers to raise funds via an initial public offer, sources told Moneycontrol.

"SAMHI Hotels is evaluating raising between Rs 1,800 crore to Rs 2,000 crore via an IPO in the second half of 2019. The issue size may vary later, if required. The Gurugram-headquartered company is in talks with investment banks like Morgan Stanley, CLSA and Kotak Mahindra Bank for the same," a source said.

The proposed IPO will raise growth capital for SAMHI Hotels and is likely to be a combination of primary and secondary issue of shares, another source said, adding: “Existing investors will have the option for a complete or partial exit."

Other than the Goldman Sachs Group, the hotel asset company counts US private firm Equity International, India-focused GTI Capital Group and the World Bank's investment arm IFC as its major shareholders. In 2011, the company had raised $100 million from Equity International and GTI Capital. In another fundraising round in 2014, it raised $30 million and $21 million from Marriott International and IFC, respectively. Goldman Sachs invested $67 million in 2015. In July 2018, the firm raised Rs 650 crore debt from Piramal Capital & Housing Finance.

SAMHI Hotels, founded by Ashish Jakhanwala and Manav Thadani in 2010, has 4,315 rooms across 29 hotels in 14 cities. It operates under brands such as Courtyard by Marriott, Sheraton, Hyatt Regency, Hyatt Place, Fairfield by Marriott, Four Points by Sheraton and Holiday Inn Express.

The premier lodging real estate firm is now regarded as one of the fastest growing domestic hotel asset companies, a third individual familiar with the company’s IPO plans said. "It is a company with a high quality management, with an established track record and which believes in attention to detail in every aspect of the business," he added.

Commenting on the recent fundraising spree in this space, Shobhit Agarwal, MD and CEO, ANAROCK Capital, said, “The IPOs by Lemon Tree Hotels, Chalet Hotels and the recent Embassy Office Parks REIT listing clearly show a demand for good products and companies on both the retail and institutional side. The hotel sector has witnessed an improvement in both occupancy and average room rate and therefore this is the right time to go out and raise growth capital.”

Goldman Sachs, CLSA and IFC declined to comment on a query from Moneycontrol. We are also awaiting responses from SAMHI Hotels, Kotak Mahindra Bank, Morgan Stanley and GTI Capital and will update this article as soon as we hear from them.


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First Published on May 15, 2019 01:57 pm
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