CPP Investments is making its first direct move into India’s hotel sector, investing C$441 million for an approximately 27% stake in Prestige Hospitality Ventures as the platform prepares for expansion.

The pension manager said most of the INR 30 billion investment will go toward growing the hotel business, owned by developer Prestige Group. The deal formalizes a framework disclosed in August that contemplated an investment of up to INR 30 billion for as much as 28% of the company.

Prestige Hospitality has seven operating hotels with 1,445 keys, primarily in Bengaluru, including the Sheraton Grand, JW Marriott Golfshire and Conrad Bengaluru. Its pipeline would take the platform beyond 5,500 keys, with projects planned or underway in Bengaluru, Chennai, Delhi, Goa, Hyderabad and Mumbai.

Among them are a St. Regis and Marriott Marquis at Delhi’s Aerocity and a planned EDITION hotel in Mumbai.

The investment lands days after Prestige Hospitality withdrew plans for an INR 27 billion initial public offering. The company pulled its draft prospectus on Sept. 25, citing “strategic considerations and uncertain market conditions,” while leaving open a future return to public markets.

CPP Investments has also been building its hotel exposure elsewhere in Asia. In January, it committed up to C$222 million to a Japan hospitality strategy managed by SC Capital Partners.

Hari Krishna, CPP Investments’ head of real estate in India, said rising travel and demand for higher-quality accommodation are creating “compelling opportunities” in the country’s hotel sector.

CPP Investments managed C$863.6 billion in assets as of June 30.

Pictured: Rendering of the St. Regis Delhi Aerocity, one of the hotels in Prestige Hospitality Ventures’ development pipeline.

Join Us | Connect Alternative Real Estate Investments comes to Vancouver on Oct. 15, bringing together investors, owners, developers and lenders to examine where alternative real estate is working, how deals are getting financed and what comes next for B.C. CRE. The program covers seniors housing, student housing, self-storage and other specialized assets, along with the policy, capital and development issues shaping the market. Register here.