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India : US$21 million IFC investment in SAMHI Hotels

August 20, 2014

A member of the World Bank Group, IFC, is to invest US$21 million in SAMHI Hotels through compulsorily convertible debentures. For IFC, this is its first investment in the hotel sector in India.

This investment will result in increasing India s capacity in the affordable and mid-market hotel segment, create jobs, and promote energy-efficient hotel design and construction.

Financing from IFC is expected to make way for 2,600 job opportunities covering the company s various hotel projects in India and from the total nearly 800 jobs will be for women.

SAMHI with this third round of funding is all set to expand its portfolio by developing greenfield hotels and through acquisitions in tier I and II cities.

Presently, SAMHI operates seven hotels in Greater Noida, Ahmedabad, Bengaluru, Hyderabad and Pune.

Ashish Jakhanwala, Managing Director and CEO, SAMHI Hotels said, This investment is an effort to strengthen the tourism infrastructure in India. Besides providing long-term financing, IFC will help us formulate environmental and social standards, and adopt green building design principles.

Vipul Prakash, Director for Manufacturing, Agribusiness, and Services, Asia Pacific, IFC, said, 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. This project will generate jobs and create business opportunities for small and medium enterprises, contributing to economic diversification and sustainable growth.

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Source: TendersInfo (India)

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