IFC invests $21 million in India's SAMHI Hotels
The investment is likely to increase India’s capacity in the affordable and mid-market hotel segment. It is also expected to create jobs, and promote energy-efficient hotel design and construction.
This is IFC’s first investment in the hotel sector in India. IFC’s financing will create 2,600 jobs across the company’s various hotel projects in India, organization sources say. Of these, nearly 800 jobs have been earmarked for women.
With this third round of funding, SAMHI will expand its portfolio by developing Greenfield hotels and through acquisitions in tier I and II cities.
Till date, SAMHI has seven operational hotels in Greater Noida, Ahmedabad, Bangalore, Hyderabad, and Pune.
Incorporated in 2011, it owns, develops, and acquires branded hotels in collaboration with multiple operators.
“This investment is an effort to strengthen the tourism infrastructure in India,” said Ashish Jakhanwala, Managing Director and CEO, SAMHI Hotels.
He added, “Besides providing long-term financing, IFC will help us formulate environmental and social standards, and adopt green building design principles.”
According to him, SAMHI is one of the first hotel ownership and asset management focused companies in India.
On the other hand, Vipul Prakash, Director for Manufacturing, Agribusiness, and Services, Asia Pacific, IFC has said, "IFC’s investment is an affirmation of the support it provides to affordable hotels in countries with increasing domestic travel and rapidly growing middle classes.”
He also went on to say that this project will generate jobs and create business opportunities for small and medium enterprises, contributing to economic diversification and sustainable growth.
IFC claims that it has funded $2 billion to over 270 hotel projects globally.
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