Firm linked to GIC investing in hotel fund

Pacifica Partners may gain up to 36% stake in fund set up by Accor and InterGlobe

(SINGAPORE) Pacifica Partners, a hotel investment firm linked to the Government of Singapore Investment Corp (GIC), will buy a stake in a hotel fund with assets valued at US$325 million.

Pacifica Partners' equity interest could go up to 36 per cent, subject to regulatory approvals.

The hotel fund is being set up by hospitality group Accor and travel corporation InterGlobe Enterprises, each of which will hold a 32 per cent equity stake. The fund's portfolio will comprise seven hotels with a total of 1,750 rooms in the Indian cities of Delhi, Bangalore and Chennai. These are at various stages of construction and will open their doors from next year to 2013.

Accor will manage the hotels under its brands. They include Novotel Delhi International Airport (400 rooms), Pullman Delhi International Airport (270 rooms), Novotel Bangalore Outer Ring Road (220 rooms) and Ibis Bangalore Outer Ring Road (330 rooms). The fund may acquire more assets down the track, and will focus on the upper mid-end and high-end hotel segments.

'The investment of Pacifica in this fund provides a platform for further growth in the strategic market of India where Accor and InterGlobe have already created an extensive development pipeline,' said Accor chairman and CEO Gilles Pelisson.

Accor, joining hands with InterGlobe, has been in India for five years and has opened eight hotels. Another 43 will be coming up in the country.

'India, at this time, is one of the most attractive lodging growth opportunities in the world,' said Pacifica Partners managing director Peter Meyer. The firm 'views this fund as an excellent vehicle to take advantage of this compelling market by teaming up with Accor and InterGlobe'.

Pacifica Partners is a joint venture between GIC and Host Hotels & Resorts. The latter owns luxury and high-end hotels worldwide, under brands such as Marriott and Ritz-Carlton, and is listed on the New York Stock Exchange.

The tie-up will seek investments in the Asia-Pacific, either existing hotels and resorts, or development projects

Source: Business Times, 22 Jul 2010