UK-based financial major Dawnay Day International is planning to enter the hospitality sector in the country. |
Dawnay Day AV Financial Services (DDAVFS), the group's India-based subsidiary, will set up an India specific fund for the hospitality sector, said industry sources. |
Peter Klimt, chief executive, Dawnay Day International, UK, will visit India on June 1 to announce the company's plans for India. According to hospitality industry sources, DDAVFS is planning to set up a $100 million India specific fund for acquisitions and buyouts in the hospitality industry. |
When contacted, Alok Vajpeyi, vice-chairman and managing director, DDAVFS, said, "The company has clear interests in the Indian hospitality sector. However, details will be announced at an appropriate time." |
"Private equity investment in Indian hotel industry is a new trend, which so far existed only in the west. |
A growing tourism industry, flowering economy and increased corporate travel has ushered a huge potential for the Indian hospitality industry. |
The equity fund companies will encash on this potential," said Amitabh Devendra, Head, Hospitality at property consultant Chesterton Meghraj. |
International firms like Morgan Stanley, Blackstone, Hines, Tishman Speyer and JP Morgan Partners are also in the lookout of similar investments. |
Indian firms like IDFC and IL&FS are in the look out for investment in the hotel sector. Dawnay Day will initially invest smaller sums in the $ 5-50 million range. Gradually, the company would look towards raising a fund from foreign investors. |
The company provides advisory services for a range of financial services- portfolio management, private equity, property investments. |
The company's wealth advisory services will include assets classes such as commodities, derivatives, and art. |