Accor sells 60% stake in low-cost Formule 1 brand

Accor is pursuing its asset-light strategy with the sale of a 60% stake in its budget Formule 1 brand.

Private equity firm Samhi Hotels Pvt. Ltd is reported to have bought the majority stake in 15 wholly-owned Formule 1 hotel projects located in India, according to a Hotel Management report.

Accor has retained the 40% stake and the hotels will continue to be operated as Formule 1 properties under a long-term management contract.

Furthermore, the operator has retained rights to own and develop further Formule 1 projects in India, Accor said in a statement.

Accor has one upcoming Formule 1 hotel in India in Pune’s Hinjewadi area.

The deal is the latest in a string of acquisitions by Samhi Hotels, which has acquired 21 hotel operation and in-development hotel projects comprising 3500 rooms across nine cities.

According to Live Mint, last year, Samhi received a $100-million investment from Equity International and GTI Capital Group. It also has a joint venture with Marriott International to develop Fairfield by Marriott branded hotels in India.

"We are very excited about the investment in the Formule 1 hotels as it makes Samhi a formidable multi-branded hotel ownership company in India, said Ashish Jakhanwala, founder and CEO of Samhi.