SAMHI Hotels Limited has signed a long-term lease for a new upscale hotel with 170-175 rooms in Hyderabad, adding it to their portfolio.
According to ET Hospitality, the new hotel will be created by converting an office building on the main road of Hitec City, Hyderabad’s largest office area, surrounded by high-quality office buildings. The building already has 270,000 sq. ft. of built-up space, and SAMHI will now start the interior work.
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SAMHI operates four hotels in Hyderabad
Through this lease, SAMHI boosts its market presence in Hyderabad, one of India’s biggest and fastest-growing office markets. The company already runs four hotels with 878 rooms in the city. This deal will add another 170-175 rooms in the Upper Upscale segment, managed by a major international operator.
Based on FY24 financials, leased assets contributed 13% to SAMHI’s total revenue. This transaction will help us reach our goal of 20%+ revenue from leased assets, which are more cost-efficient. Once completed, the hotel will boost our share of Upper Upscale & Upscale assets in a key market, following our last acquisition in Bengaluru.
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Further, Ashish Jakhanwala, chairman and managing director of SAMHI Hotels Ltd., commented on the performance, “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.”
