During the first five months of 2012,hospitality industry raised $121 million throughprivate equity (PE) deals, according to data from an industry report.
Private equity players are showing renewed interest in the sector noting huge growth potential in the industry.
In 2010, the industry saw only five private equity deals with a cumulative value of $156 million. By 2011, the deal amount grew to $299 million.
Several international hospitality brands have forayed into Indian market and domestic brands are planning out strategy to fill the demand-supply gap for quality rooms.
One of the largest investments in the recent times has been Samhi Hotels receiving $150 million from GTI Group, as per the data made available by Venture Intelligence, a research firm focused in PE/VC and merger and acquisitions.
As far as acquisitions are concerned, against five deals in 2010, there were 14 deals in 2011 and 10 during the five months in 2012. These include Grosvenor House Hotel being acquired by Sahara India Pariwar for $726 million and a property by Leela Hotels being bought by Travancore Enterprises for $111 million.