The Hindu Business Line : Trinity Capital to invest £11 m in luxury hotels in India

Trinity Capital has announced that it will invest £11.34 million (approximately Rs 100 crore), in a special purpose vehicle, which currently owns one 5-star Indian hotel and has acquired land to develop a further three luxury hotels over the next three years.

Dynamix-Balwas Group owns the operating hotel, Le Royal Meridian in Mumbai. Trinity and IL&FS Investment Managers (IL&FS) have jointly invested in equal proportions.

Earlier in August, Trikona Capital, the asset manager for Trinity, announced a 50:50 $100-million partnership with IL&FS to invest in the development of real-estate assets in India. Friday's announcement represents the first allocation under this platform and accounts for 45 per cent of the partnership's commitment.

Dynamix-Balwas Group is a premium Mumbai-based developer and has developed in excess of 10 million sq.ft. of real estate in the form of township projects, residential complexes and shopping malls in and around Mumbai.

Le Royal Meridian in Mumbai was established in 2000 and is managed by Le Meridian Group. The new company will develop a further three hotels, in Mumbai, Pune and Goa, all targeting the luxury end of the market, adding in excess of 1,000 rooms. The management teams are in discussions with the Hyatt Group to operate and manage the three development properties, which should be completed within the next 36 months.

Mr Aashish Kalra, Managing Director of Trikona Capital, said: "The Indian hotel sector is undergoing a rapid transformation, as operators seek to exploit the obvious gap between demand and supply. It is the stated objective of Trikona Capital to build one of the largest hospitality platforms in the country, covering the mid and high-end hotel markets. As with this transaction, our strategy will continue to be to form partnerships with the leading players within the hospitality sector."