SAMHI Hotels Ltd Approves ₹450 Million Investment in Ascent Hotels

Image Source: Kotak Securities

SAMHI Hotels Ltd has announced that its Board of Directors has approved an investment of ₹450 million in its wholly-owned subsidiary, Ascent Hotels Private Limited. This strategic move is part of SAMHI’s ongoing efforts to strengthen its upscale hotel portfolio and accelerate growth through targeted capital deployment.

Key Highlights:

The ₹450 million investment will be directed towards Ascent Hotels, a key subsidiary that contributes over 12% of SAMHI’s total revenue and around 11% of its net worth as of March 2024.
This capital infusion aligns with SAMHI’s broader partnership with Singapore’s GIC, which recently committed to a significant joint venture for upscale hotel assets in India, including Ascent Hotels.
The investment is expected to support ongoing and future development projects within Ascent Hotels, enhance operational capabilities, and position the subsidiary for further expansion in high-demand urban markets.

The move is also part of SAMHI’s strategy to optimize its capital structure, reduce debt, and improve financial metrics, following recent transactions that have already resulted in a substantial reduction in the group’s leverage.

The board’s decision reflects confidence in Ascent Hotels’ growth prospects and the overall positive outlook for the hospitality sector in India, particularly in the premium and upscale segments.

The transaction is anticipated to be completed within the next 120 days, subject to regulatory and corporate approvals.

This investment underscores SAMHI Hotels’ commitment to scaling its presence in the Indian hospitality market and leveraging strategic partnerships for sustainable growth.

Source: Economic Times, Moneycontrol, VCCircle