Upfront

Trikona Capital to invest up to $4bn in mid-market hotel brands

Trikona Capital, a large India-specific fund focused on real estate, is set for a major play in the hospitality business. The fund, which could invest as high as US $2.5 to US $3 billion over the next three years in realty-related domains, is looking to acquire mid-market hotel brands in the country.

This is besides the recent arrangement with the InterContinental Group to invest in developing the Holiday Inn brand across the country. UK-based InterContinental Hotels Group, which is making an aggressive push through the contract management route, operates 11 properties under the Holiday Inn brand in India.

Trikona, floated by a few Indian-born entrepreneurs, raised about US $500 million with one of its funds, Trinity Capital, listing on LSE earlier this year. Trikona Capital could show up with an investory of 4,000-5,000 hotel rooms in the next three to five years. Aashish Kalra, managing director and co-founder of Trikona Capital, "The focus is on three to four-star hotels. We could acquire a brand or come up with a brand of our own. We may end the year by acquiring a strategic stake in some existing hotel properties."

Trikona could set up a sub-fund or an operating venture to control its hospitality business. "We see a big opportunity in the sector, especially in the mid-market category," Kalra added. Trikona is also bullish on infrastructure including ports and SEZs, apart from hospitality. Trikona, which has two ongoing partnerships with IL&FS, is likely to invest up to US $1 billion annually over the next three years.