 "World Bank arm IFC to invest $21 million in SAMHI Hotels to promote jobs")
"IFC, a member of the World Bank Group, is investing $21 million in SAMHI Hotels through compulsorily convertible debentures. The investment will increase India's capacity in the affordable and mid-market hotel segment, create jobs, and promote energy-efficient hotel design and construction," it said in a release today.
This will be IFC's first investment in the hotel segment in India.
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The investment is likely to create about 2,600 jobs across SAMHI's various hotel projects in Greater Noida, Ahmedabad, Bangalore, Hyderabad and Pune, it said.
"Of these, nearly 800 jobs will be for women. With this third round of funding, SAMHI will expand its portfolio by developing greenfield hotels and through acquisitions in tier I and II cities.
"This investment is an effort to strengthen the tourism infrastructure in India," said Ashish Jakhanwala, Managing Director and CEO, SAMHI Hotels.
He said the investment will also help the hotel group to formulate environmental and social standards besides adopting green building design principles.
"IFC's investment is an affirmation of the support it provides to affordable hotels in countries with increasing domestic travel and rapidly growing middle classes," said Vipul Prakash, Director for Manufacturing, Agribusiness, and Services, Asia Pacific, IFC.
This project will generate jobs and create business opportunities for small and medium enterprises, contributing to economic diversification and sustainable growth, he said.
Globally, IFC has funded $2 billion to over 270 hotel projects.
SAMHI, incorporated in 2011, owns, develops, and acquires branded hotels in collaboration with multiple operators.
It has partnered with global hotel operators such as Marriott, Starwood Hotels, Accor, and Hyatt to manage its portfolio of 25 hotels comprising over 3,700 rooms.