TTT NEWS NETWORK
GURUGRAM, 8 NOVEMBER 2024:
SAMHI Hotels Limited (BSE: 543984) (NSE: SAMHI) a prominent branded hotel ownership and asset management platform in India, is pleased to announce the addition of a new hotel to its portfolio by signing a long-term variable lease for an Upper Upscale hotel of 170 -175 rooms in Hyderabad.
The hotel will be completed through conversion of an office building located on the main arterial road of Hitec City, the largest office micro-market in Hyderabad and surrounded by a high density of Grade A office stock. The structure is already completed with N270,000 sq.ft. of built-up area and SAMHI will now undertake the fit-out work of the building.
Through this lease agreement, SAMHI strengthens its market share in Hyderabad, which has one of the India’s largest and fastest growing office markets. The Company already owns and operates 4 hotels with 8781 rooms in Hyderabad across segments. This transaction will further add 170 -175 rooms in the Upper Upscale segment which will be managed by a large international operator.
Basis FY24 financials, revenue from leased assets contributed 13% to SAMHl’s total revenue. This transaction will help us in achieving the target of20%+ revenue contribution from leased assets which are significantly more capital efficient. The hotel once completed will also increase our share of our Upper Upscale & Upscale assets in a key market after our last acquisition in Bengaluru.
Commenting on the performance, Mr. Ashish Jakhanwala, Chairman & Managing Director, SAMHI Hotels Ltd. said, “I am delighted to announce the signing of long-term variable lease in Hitec City, Hyderabad. This transaction aligns with our stated strategy of increasing the share of long-term leases for better capital efficiency and higher risk adjusted returns. We are also proud to have executed one of the first office building conversions to a hotel, which opens up a new avenue for our growth. With a quick conversion of this building to an Upper Upscale hotel, we have secured strong growth for our portfolio.”
About SAMHI Hotels Ltd.
SAMHI is a prominent branded hotel ownership and asset management platform in India with an institutional ownership model, experienced leadership and professional management team. SAMHI has long-term management arrangement with three of the established and well recognized global hotel operators, namely, Marriott, IHG and Hyatt. SAMHI has a portfolio of 32 operating hotels comprising 4,943 keys and has a diverse geographic presence in 13 cities across India, including National Capital Region (NCR), Bengaluru, Hyderabad, Chennai and Pune.
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