Goldman Sachs invests US$66m in Indian hotel firm

Goldman Sachs has invested 4.4 billion rupees (US$66 million) for a significant minority stake in Indian hotel investment and development firm Samhi Hotels, the companies said in a statement.
Samhi, which operates 10 hotels and is developing 16 more, will use the money to grow its portfolio to about 30 to 35 properties, chief executive officer Ashish Jakhanwala told Reuters.
Its portfolio is leased to operators including Marriott International, Starwood Hotels, Accor
and Hyatt International.
A gradual recovery in Asia?s third-largest economy is boosting demand for hotel rooms. Hotel occupancy in India in the year to March 31, 2015 rose to 60.3 percent, the highest in four years. RevPAR grew for the first time since 2010-2011, showed a report by consultant HVS.
?There will be continued opportunities for acquisitions, given several hotels need fresh capital to relieve them of the financial stress of the past few years,? said Jakhanwala.
Samhi has raised $240 million in equity since 2011 and has focused on acquiring economy and mid-scale hotels and refurbishing or rebranding them.
Samhi declined to specify the exact stake that the Goldman Sachs investment had bought. Samhi?s biggest investor remains Equity International, founded by billionaire real estate mogul Sam Zell, which has invested US$90 million in Samhi.