REGIONAL PROFILE
SAMHI in growtH Mode
Gurgaon-based developer SAMHI received a cash infusion from Goldman Sachs in January – a minority stake of 4.4 billion rupees ( US $ 66 million ); that ’ s on top of US $ 240 million in investments since 2011 . The company aims to grow its portfolio of 25 hotels carrying major brand flags – all in India . Managing Director and CEO Ashish Jakhanwala talks about what the future holds .
HOTELS : How will you leverage the investment ? Ashish Jakhanwala : All the hotels are fully financed , so the money will go to grow the platform . I believe that today , prices in India are fairly rationalized . The biggest trend is that there is very little supply coming in the market in the next three to four years .
H : What kind of properties are you looking for ? AJ : We love displaced assets and are well-placed to acquire them . to ensure that our hotels carry an international distribution .
H : What changes have you seen from the government since Narendra Modi became prime minister in 2014 ? AJ : It has a very corporate approach . A lot of initiatives may not see an immediate response in the stock market , which is the barometer for a lot of financial analysis . What Modi is doing is more sustainable for the economy . [ Changes ] will unfortunately come too slowly for analysts and the media , but for business they will be more sustainable . It will definitely impact companies in the next eight to 10 quarters .
H : Where are opportunities ? AJ : Asset prices . There has been a scarcity of capital in the hotel sector in the last three years . The other advantage is that the markets are maturing . As an asset owner , we feel far more confident of stability . years that I have become concerned what my own central bank does . I don ’ t think there is much that keeps us awake at night at a micro level . At a macro level , what ’ s happening at a global economic level affects the capital level of the country .
H : What are your goals ? AJ : In the next 24 months , we definitely see 4,500 to 6,000 rooms . In three to five years , we see ourselves as a 10,000-room company . Other than SAMHI , there is no institutional form of branded hotel ownership , and that gives us a strong base to keep growing the platform . – BB
All hotels in SAMHI ' s portfolio carry global brands , including the Hyatt Place Gurgaon .
H : Where are you looking ? AJ : We like to be in the top 10 to 12 cities in India . Delhi , Mumbai , Bangalore , Hyderabad – these four markets have a lot of potential for growth . We are pretty agnostic when it comes to brand but we would like
H : What is the biggest obstacle to getting deals signed ? AJ : Whatever can go wrong does go wrong . [ India is ] a net importer of fuel . Currency is another concern because you see how volatile the world has become . It ’ s only in the last three
38 hotelsmag . com May 2016