Private equity players are increasingly looking to invest in operational hotels rather than underconstruction projects to avoid project delays and cost overruns as they look to deploy more capital into the sector.
Large global and domestic funds like Blackstone Group, TPG Capital Management and Capital International Group, Goldman Sachs and SAMHI are some of the prominent names that are looking to acquire more assets or create a new platform to buy and own hotels. In the past two years, some of these funds have invested over $100 million in several hotel chains in India, data by Venture Intelligence showed. In another transaction, New Delhi-based hotel chain Lemon Tree Hotels is in talks with large international funds to raise $120-150 million (Rs 800-1,000 crore) in the company. Blackstone’s co-head Mathew Cyriac in an email response said, “As a matter of policy, Blackstone does not comment on market speculations”.