IHCL, GIC strike Rs 4,000-crore deal to acquire premium hotels in India

Analysts say partnership is a win-win for both, given the long gestation period in the sector

One of India’s largest hotel chains, Indian Hotels Company (IHCL), has tied up with Singapore’s sovereign wealth fund GIC to jointly acquire premium hotels in the country. The initial outlay of deal is pegged at Rs 4,000 crore for a period of three years with GIC contributing 70 per cent and IHCL pitching in with the rest.

Each acquisition will be housed under a separate special purpose vehicle (SPV) and will be branded and managed by IHCL. The SPVs will acquire fully operational hotels which will also include distressed or underperforming hotels that can be turned around.

Puneet Chhatwal, managing director and