GIC Real Estate invests in India’s hotel assets

The Economic Times

Leading hotel operator Accor and InterGlobe, a travel corporation, on Wednesday announced the establishment of an investment fund for a portfolio of India hotel assets.

Accor and InterGlobe would each hold 32 per cent equity in the fund.

An affiliate of Pacifica Partners (Pacifica) would take a significant stake of up to 36 per cent equity in this fund, subject to requisite regulatory approvals, a press statement issued here stated.

Pacifica Partners Private Limited is the asset manager to a joint venture hotel investment company established by an affiliate of GIC Real Estate Pvt Ltd and Host Hotels & Resorts.

The fund would initially hold the assets for seven hotels in India, which are currently jointly-owned by Accor and InterGlobe, representing 1,750 rooms with a value of approximately $325-million on the completion of the hotels.

The hotel developments are all in key gateway cities of India with prime locations within these markets, including at the recently opened Delhi International Airport, one of Asia’s newest and largest airports, the release said.

All seven hotels would open between 2011 and 2013.

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