SAMHI Hotels Limited has provided comprehensive details about its strategic ₹47 crores investment to acquire up to 70% stake in RARE India through a business update conference call held on March 06, 2026. The acquisition marks the company's first foray into the leisure segment through an asset-light investment model, representing a significant diversification from SAMHI's traditional focus on tier-one business hotels.

Strategic Investment Framework

The investment will be executed over a 12-month period through a combination of primary and secondary transactions. RARE India, founded in 2003, operates as a platform supporting over 67 small experience-led hotels with approximately 990 rooms across 15 states in India, Bhutan, and Nepal. The transaction structure involves primary investment of ₹23 crores and secondary purchase of ₹24 crores, with enterprise value established at ₹49 crores.

RARE India Platform Performance

RARE India has established itself as a curated platform focusing on authentic, experience-led hospitality properties. The platform's portfolio demonstrates strong pricing power, with over 70% of hotels operating at rates exceeding ₹25,000 per night, and approximately 30% commanding rates above ₹45,000 per night. Current occupancy ranges from 35% to 45%, with total enterprise-wide gross sales of ₹250 crores.

Exclusive Marriott Partnership Strategy

A key component of the transaction involves RARE becoming the exclusive portfolio platform for the Outdoor Collection by Marriott Bonvoy in India, Nepal, Bhutan, and Sri Lanka. This partnership aims to transform RARE from its current B2B model to a B2C platform with enhanced distribution capabilities. The current revenue structure includes subscription fees ranging from ₹2 lakhs to ₹4 lakhs per hotel annually, plus entitlement to 18% to 20% commission on direct sales.

Growth Projections and Expansion Timeline

SAMHI management outlined ambitious growth targets for the RARE platform, projecting revenue potential of ₹90 crores to ₹100 crores in the medium term. The expansion strategy includes scaling from current 67 hotels to approximately 120-150 properties over three years, with an active pipeline of 25-30 properties already identified.

Financial Rationale and Strategic Positioning

The investment represents approximately 10% of SAMHI's free cash generation, positioning it as a strategic bet rather than a core business pivot. Management expects the platform to generate 60% to 70% return on capital employed once fully operational. The asset-light model ensures minimal ongoing capital requirements after the initial investment, with future growth primarily driven by platform expansion and enhanced distribution.

This acquisition marks two significant firsts for SAMHI: entry into the leisure segment in a scalable manner and the company's first asset-light investment. Management emphasized that the investment will not distract from SAMHI's core competence in tier-one business hotels, which will continue to represent the majority of the company's capital deployment and revenue generation.

SAMHI Hotels has officially completed its strategic acquisition of RARE India and has now provided the audio recording of its business update call held on March 6, 2026, in compliance with regulatory requirements. The hospitality company has finalized the acquisition of a 70% partnership interest in RARE India for ₹470 million, marking SAMHI's entry into the experiential leisure hospitality segment through an asset-light platform investment.

Regulatory Compliance and Business Update Call

Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, SAMHI Hotels has shared the audio recording of the business update call with stock exchanges. The call was conducted to discuss the strategic investment to acquire majority stake in RARE India and the planned scaling into a B2C brand in affiliation with Marriott.

Transaction Structure and Investment Details

The business update presentation reveals the complete transaction framework for this strategic investment. SAMHI will invest ₹470 million to acquire the majority stake through a combination of primary and secondary transactions, valued at a pre-money business valuation of ₹490 million.

RARE India Platform and Portfolio Expansion

Founded in 2003 by Shobha Rudra, RARE India operates as one of India's earliest curated experiential hospitality platforms. The established leisure platform supports a distinctive portfolio of heritage palaces, wildlife lodges, retreats and boutique properties with strong emphasis on responsible tourism and authentic experiences.

Strategic Marriott Bonvoy Partnership

Under the confirmed affiliation with Marriott International, RARE will become Marriott's exclusive portfolio platform for the "Outdoor Collection by Marriott Bonvoy" across India, Nepal, Sri Lanka and Bhutan. This partnership will provide access to Marriott's global distribution channels and loyalty ecosystem, significantly enhancing RARE's direct-to-customer capabilities.

Management Vision and Strategic Rationale

Ashish Jakhanwala, Chairman & Managing Director of SAMHI Hotels, emphasized the transaction's strategic value: "This allows SAMHI to establish its presence in the leisure segment through an asset light model. The scalability of this platform into a full stack B2C and brand gives significant future value to our shareholders without distracting us from our core business."

Shobha Rudra, Founder of RARE India, highlighted the partnership's alignment: "This partnership with SAMHI allows us to remain true to our philosophy and continue to preserve and grow the community of true tourism champions."

The acquisition represents SAMHI's strategic expansion beyond its core business hotel portfolio, leveraging the growing experiential leisure segment while maintaining capital efficiency through the asset-light model. The company has made the business update call audio recording available on its website to ensure transparency and regulatory compliance with stakeholders.