The International Finance Corporation, an arm of the World Bank, is scheduled to invest $21 million in India’s SAMHI Hotels with the intent to create jobs and promote energy efficiency infrastructure.
"The investment will increase India’s capacity in the affordable and mid-market hotel segment, create jobs, and promote energy-efficient hotel design and construction," the IFC said in a statement.
This will reportedly be the IFC’s first investment in the hotel segment in India. It is anticipated to create approximately 2,600 jobs in Greater Noida, Ahmedebad, Bangalore, Hyderabad and Pune. The investment will also help the SAMHI group form environmental and social standards.
"This investment is an effort to strengthen the tourism infrastructure in India," Ashish Jakhanwala, managing director and CEO, SAMHI Hotels, said.
The investment confirms that the IFC is committed to supporting affordable hotels in countries with increasing domestic travel and growing middle classes. The project will create jobs and business opportunities for mid-level businesses.
"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," Vipul Prakash, director for manufacturing, agri business and services, Asia Pacific, IFC, said. "This project will generate jobs and create business opportunities for small and medium enterprises, contributing to economic diversification and sustainable growth."
Globally, IFC has funded $2 billion to over 270 hotel projects. The hotel and tourism industry is a major contributor to employment, foreign exchange earnings and tax revenues in emerging markets.
SAMHI owns, develops and acquires branded hotels in collaboration with multiple operators. It has partnered with brands such as Marriott, Starwood, Accor and Hyatt.