Samhi Hotels has announced a strategic expansion of its presence in Hyderabad's Financial District through its wholly-owned subsidiary, Barque Hotels Private Limited. The company has executed an Agreement to Lease (ATL) for a new 260-room mid-scale hotel, set to be part of a mixed-use development project.

Key Details of the Agreement

• Parties Involved: Barque Hotels Private Limited (SAMHI subsidiary) and lessors Mrs. P Pramoda, Mrs. P Harika, and Aurean Eskar
• Date of Execution: August 27, 2025
• Project Location: Financial District, Hyderabad
• Hotel Capacity: Approximately 260 rooms
• Estimated Development Cost: ₹1,250.00 million to ₹1,430.00 million (for SAMHI's scope of work)

Project Development Structure

The agreement outlines a two-phase development process:

1. Initial Construction: Aurean Eskar Homes LLP will develop the building within a pre-defined timeframe.
2. Hotel Fitout and Branding: Upon building completion, SAMHI will take possession to execute hotel fitouts and branding.

Innovative Lease Structure

SAMHI has structured the deal as a long-term variable lease, aligning the interests of both SAMHI and the lessors. This arrangement ties the valuation of the underlying land to the hotel's operating performance, allowing SAMHI to:

• Participate in market upside
• Mitigate fixed lease obligations

Strategic Significance

This new hotel adds to SAMHI's existing portfolio in Hyderabad's Financial District, which includes:

• Sheraton (326 keys, including 42 under development) in the Upscale+ segment
• Fairfield by Marriott (232 keys) in the Upper Mid-Scale segment

The addition of this mid-scale hotel strengthens SAMHI's strategy to:

• Capture multiple price points within core micro-markets
• Diversify across price points to capture a wider demand spectrum
• Enhance portfolio performance and risk-adjusted returns

Market Impact and Future Outlook

Sanjay Jain, Senior Director of Corporate Affairs, Company Secretary, and Compliance Officer at SAMHI Hotels Limited, stated that this agreement underscores the company's "disciplined, capital-efficient growth strategy" while densifying its presence in core markets across multiple price points.

The transaction remains subject to customary conditions, including the receipt of requisite building sanctions for the construction. SAMHI plans to provide further details on this development in their Q2 FY2026 quarterly presentation.

This strategic move by SAMHI Hotels Limited reflects the company's confidence in the growth potential of Hyderabad's Financial District and its commitment to expanding its footprint in key Indian markets.

Samhi Hotels , a leading branded hotel ownership and asset management platform in India, has announced robust financial results for the first quarter, ending June 30. The company demonstrated significant growth across key financial metrics, despite facing some geopolitical challenges during the period.

Financial Highlights

Operational Performance

The company maintained a strong occupancy rate of 74% for the quarter, showcasing the resilience of its business model. Despite a temporary setback in May due to geopolitical events, Samhi Hotels' performance quickly rebounded, with year-on-year metrics returning to April levels by June.

Strategic Developments

Samhi Hotels has made significant strides in its growth strategy:

1. GIC Partnership: The company completed a transaction with GIC, Singapore's sovereign wealth fund, which invested approximately INR 7,500.00 million for a 35% stake in three of Samhi's subsidiaries.

2. Asset Recycling: Since 2023, Samhi has concluded over INR 2,100.00 million of asset sales at an average EV/EBITDA multiple of ~20x.

3. Growth Investments: The company has invested or committed to invest over INR 10,000.00 million in new assets and rebranding initiatives, which are expected to yield higher returns.

4. Caspia Hotel Divestment: Samhi has entered into an agreement to sell its Caspia Hotel in New Delhi, aligning with its strategy of capital recycling to improve shareholder returns.

Management Commentary

Ashish Jakhanwala, Chairman & Managing Director of Samhi Hotels Ltd., commented on the results: "Despite a short period of interruption due to geopolitical issues, we continue to see good growth across our portfolio. This sets a strong base for future growth. With a strong pipeline of assets under rebranding and/or completion, we are excited about the overall prospects of our company."

Financial Position

As of June 30, Samhi Hotels has significantly improved its financial position:

Future Outlook

With a strong balance sheet and a clear growth strategy in place, Samhi Hotels is well-positioned for future expansion. The company has identified multiple levers to expand its revenue base, including market growth, margin expansion, and new acquisitions using its investible surplus.

Samhi Hotels continues to focus on disciplined growth, operational excellence, and clear communication with stakeholders, as it aims to capitalize on the positive trends in India's hospitality sector.

Note: All financial figures are in Indian Rupees (INR) unless otherwise stated.