Published on : Tuesday, August 19, 2014
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.
This is IFC’s first investment in the hotel sector in India.
IFC’s financing will create 2,600 jobs across the company’s various hotel projects in India.
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.
SAMHI has seven operational hotels in Greater Noida, Ahmedabad, Bangalore, Hyderabad, and Pune.
“This investment is an effort to strengthen the tourism infrastructure in India,” said Ashish Jakhanwala, Managing Director and CEO, SAMHI Hotels. “Besides providing long-term financing, IFC will help us formulate environmental and social standards, and adopt green building design principles.”
Recently, the company’s hotel project in Bangalore was granted IFC’s EDGE (Excellence in Design for Greater Efficiencies) certification.
EDGE helps builders assess cost-effective methods to incorporate green features into their building designs.
“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.”
Globally, IFC has funded $2 billion to over 270 hotel projects.
The hotel and tourism industry is a major contributor to employment, foreign exchange earnings, and tax revenues in emerging markets.
According to the World Travel and Tourism Council, every dollar spent on travel and tourism generates over three dollars of economic output.
Tags: Hotel News, IFC, SAMHI Hotels
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