SAMHI today announced that it has acquired 60% ownership interest in 15 Formule 1 Hotels in India. Of these the first two hotels have opened ? in Greater Noida and Ahmedabad ? with a further hotel opening in Pune Hinjewadi by the end of this year. Additional five hotels are planned to open in 2013. The portfolio has a total inventory of over 2,100 keys in open or under development hotels.
With this acquisition SAMHI has now acquired a total of 21 hotel projects (open or under development) across 9 Indian cities, with a total inventory of about 3,500 rooms. SAMHI was founded by Ashish Jakhanwala and Manav Thadani and in October 2011 received a USD 100 million investment commitment from marque shareholders such as Sam Zell-led Equity International and GTI Capital Group. SAMHI also has a joint venture with Marriott International to develop Fairfield by Marriott branded hotels in India besides ownership of Royal Orchid Ahmedabad and upcoming Hyatt Place in Gurgaon.
?We are very excited about the investment in the Formule 1 hotels as it makes SAMHI a formidable multi-branded hotel ownership company in India. Formule 1 is a strong product and brand positioned to capture the large volume price sensitive Indian traveller and Accor as a hotel company is well known for its expertise in this segment globally and this makes our investment very attractive,? said Ashish Jakhanwala, Founder & CEO of SAMHI.
With this acquisition SAMHI has now strong presence across the entire value for money segment starting from Formule 1 at the entry level, then Fairfield by Marriott and finally Hyatt Place and Royal Orchid Ahmedabad in the mid-segment. The Company has perhaps exhibited the most rapid growth due to tactical acquisitions in an industry which is otherwise known for slow growth.
SAMHI?s business model emulates established practice in the mature western economies where hotel ownership and investment is considered a specialized business distinct from hotel brand and/or management business. With evolution of the financial system in India and greater emphasis on financial discipline it is expected that India will follow the same structure where core competence will be rewarded. Most existing hotel companies in India follow a hybrid model which includes brand, management and ownership- all within a single entity and management, a difficult task as businesses expand and grow in scale and size.