The hospitality brand has entered into a joint venture with real estate advisory firm IQI India, under which it will expand its presence across India through mergers, acquisitions and property investments. The partnership aims to develop 5,000 keys in the next five years.
Global hospitality brand Signum Hotels & Resorts Pvt. Ltd. has announced a strategic joint venture with real estate advisory firm IQI India, under which it will invest $150 million in developing hotel assets across the country and globally within the next two to five years. Though the venture comes at a time when investments in the Indian hospitality industry are low, due to the COVID-19 pandemic, the partnership is expected to capitalize on the opportunity to identify and acquire assets at competitive deals and aims to develop 5,000 keys within five years. The expansion will be facilitated through mergers, acquisitions and property investments metros, tier 2 and 3 cities in India, said Mehul Sharma, Founder & CEO, Signum Hotels & Resorts Pvt. Ltd in a statement.
Investing in the Indian hospitality industry
“We are pleased to be forming this strategic joint venture with IQI India to accelerate our expansion in the country where IQI brings in assets and Signum operates these assets. No hotel brand is successful without a real estate partner, and this joint venture will capitalize on IQI’s global real estate prowess to identify and develop the right assets,” he said. “At present, domestic tourism is the leading light to recovery for the Indian hospitality industry, and our partnership aims to further fuel growth in the domestic sector, in turn generating more employment opportunities and contributing to government’s #vocalforlocal initiative,” Sharma added.
IQI India, is the Indian arm of IPC IQI, which is headquartered in Malaysia with operations across 17 countries. “Our team’s experience of decades in the India Real Estate and Retail Market coupled with our access and network through more than 200 cities across India fosters our confidence in the Indian hospitality market and we are eyeing an aggressive expansion in the commercial real estate segment,” said Pankaz Jaiin, Chairman and Managing Director, IQI India and Chairman PaMa D’Globizen.
While the joint venture will primarily focus on the Indian market, Signum Hotels is likely to leverage IQI’s international presence to expand in regions such as Singapore, Bangkok, Indonesia, and parts of Europe.
Earlier this year, Signum Hotels & Resorts announced its first hotel in Eastern Europe. The 40-room Signum Adrenaline Park Tara is scheduled to open in Serbia by the end of April. The hospitality brand has also tied up with Frank Group, an international holding and investment group of companies based in Israel. As part of the deal, Signum Hotels & Resorts will develop and manage the company’s upcoming hotel portfolio in the Greece and Israel markets.