“GIC offers very long-term capital and hospitality requires someone like that rather than a private equity investor,” said Anuj Puri, chairman at Anarock Property Consultancy Pvt Ltd. in Mumbai. “Indian Hotels has the ability to deliver, manage and maintain, so it’s a great partnership.”
The deal will allow Indian Hotels Co. to pursue acquisitions in an asset-light format, with the Indian partner managing the properties, according to the company statement.
Indian Hotels Co. will add 1,900 rooms to its capacity this financial year after signing contracts to manage 22 new properties last year, BloombergQuint reported earlier this month. The share of management contract rooms in the company’s portfolio increased to 40% from 32% last fiscal, according to the report.
Government of Singapore Investment Corp. or GIC was established by the Singapore government to manage foreign reserves and has more than $100 billion in assets.