Dawnay Day AV Financial Services, the group's India-based subsidiary, will set up an India specific fund for the hospitality sector, said industry sources.
Peter Klimt, chief executive, Dawnay Day International, UK, will visit India on June 1 to announce the company's plans for India. According to hospitality industry sources, DDAVFS is planning to set up a $100 million India specific fund for acquisitions and buyouts in the hospitality industry.
When contacted, Alok Vajpeyi, vice-chairman and managing director, DDAVFS, said, "The company has clear interests in the Indian hospitality sector. However, details will be announced at an appropriate time."
"Private equity investment in Indian hotel industry is a new trend, which so far existed only in the west. A growing tourism industry, flowering economy and increased corporate travel has ushered a huge potential for the Indian hospitality industry. The equity fund companies will encash on this potential," said Amitabh Devendra, Head, Hospitality at property consultant Chesterton Meghraj.
International firms like Morgan Stanley, Blackstone, Hines, Tishman Speyer and JP Morgan Partners are also in the lookout of similar investments.
Indian firms like IDFC and IL&FS are in the look out for investment in the hotel sector. Dawnay Day will initially invest smaller sums in the $ 5-50 million range. Gradually, the company would look towards raising a fund from foreign investors.
The company provides advisory services for a range of financial services- portfolio management, private equity, property investments.
The company's wealth advisory services will include assets classes such as commodities, derivatives, and art.