Indian conglomerate Tata Group’s hospitality unit Indian Hotels Company is teaming up with Singapore’s sovereign wealth fund GIC to buy hotel assets across India.
The two firms will form a $600 million joint venture to identify suitable properties.
They will focus on underperforming properties in the luxury, upper upscale and upscale segments.
IHC will manage the properties under its various established brands which include Taj Hotels, Vivanta and Ginger.
"As a long-term investor, we are confident on the outlook of India’s hospitality sector. We look forward to working closely with established partners such as IHCL to pursue attractive opportunities," said Kok Sun Lee, GIC Real Estate’s chief investment officer.
The equity split into the new joint venture will be 70% from GIC and 30% from Indian Hotels Company.
Separately, Indian Hotels Company signed management contracts for 22 new hotel properties last year.
