Sayaji Hotels to Transition from Operating Agreement to Management Contract for Vadodara Property

Sayaji Hotels Limited has announced a significant change in its business arrangement for a hotel property in Vadodara, Gujarat. The company's current operating agreement with Prinite Hospitality Private Limited is set to expire on October 31, 2025, marking the end of a partnership that began in 2017.

Key Details of the Agreement

Aspect	Details
Original Execution Date	April 4, 2017
First Amendment	November 1, 2017 (5-year term)
Recent Renewal	November 1, 2022 (3-year term)
Expiration Date	October 31, 2025

Transition to Management Contract

While Prinite Hospitality has decided not to renew the existing operating agreement, they have proposed an alternative arrangement. The new proposal suggests transitioning to a Management Contract basis, under which Sayaji Hotels would continue to operate and manage the property in exchange for management fees.

Impact on Sayaji Hotels

This change in the business model is expected to have a notable impact on Sayaji Hotels' financial performance:

Financial Metric	Estimated Impact
Annual Revenue	Approximately 24% reduction
EBITDA	Approximately 14% reduction

Brand Continuity

Despite the changes in the operational structure, the property will continue to operate under the 'SAYAJI' brand, maintaining brand consistency for guests and stakeholders.

This transition reflects the dynamic nature of the hospitality industry and the evolving relationships between property owners and hotel operators. For Sayaji Hotels, while the shift may result in reduced revenue and EBITDA in the short term, the new management contract model could potentially offer more flexibility and reduced operational risks in the long run.

Investors and industry observers will likely be keen to see how Sayaji Hotels adapts to this new arrangement and whether it signals a broader shift in the company's operational strategy going forward.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.37%	-2.80%	-1.37%	+3.21%	-20.35%	+81.17%

Sayaji Hotels Limited , a prominent player in the Indian hospitality sector, has made significant moves to strengthen its leadership and set the stage for ambitious growth. The company's shareholders have approved key reappointments and expansion plans during the 42nd Annual General Meeting (AGM) held on September 19, 2025.

Leadership Continuity

The AGM saw the reappointment of two crucial directors:

Mrs. Isha Garg has been reappointed as a Non-Executive Woman Independent Director for her second five-year tenure, effective from August 27, 2025, to August 26, 2030. Mrs. Garg, a Fellow Member of the Institute of Company Secretaries of India with an MBA, brings extensive experience in corporate and secretarial matters to the board.
Mrs. Suchitra Dhanani has been reappointed as a Whole-Time Director for a three-year term, from February 6, 2026, to February 5, 2029. With a background in Home Science and Social Work, Mrs. Dhanani has been instrumental in managing the Guest Satisfaction Index and overseeing the company's Training Department.

Family Ties and Expertise

Mrs. Suchitra Dhanani has familial connections within the company's leadership. She is the sister-in-law to both Mr. Raoof Dhanani, the Managing Director, and Mr. Yusuf Razak Dhanani, a Director of the company. This family involvement underscores the close-knit nature of Sayaji Hotels' top management.

Ambitious Expansion Plans

During the AGM, Mr. Raoof Razak Dhanani, Managing Director of Sayaji Hotels, unveiled the company's aggressive growth strategy. Key highlights include:

Plans to expand from the current 50 hotels to 150 hotels across India within the next 5-6 years.
Strengthening of the multi-brand strategy, which includes:
- Sayaji
- Effotel
- Enrise
- Resorts & Spa
- The Forest Chapter
- A new ultra-luxury brand, Altara

Focus on Quality and Trust

Mr. Dhanani emphasized the company's commitment to delivering consistent "Yours Truly" hospitality. The goal is to build Sayaji Hotels into a modern, ambitious, and trusted hospitality group, leveraging its 43-year journey in the industry.

Corporate Governance

In addition to the director reappointments, the AGM also approved the appointment of M/s NPG & Company as the Secretarial Auditor for a five-year term. This move aims to ensure continued compliance with regulatory requirements and maintain high standards of corporate governance.

Financial Decisions

The shareholders also approved measures to increase the company's borrowing powers for the financial year 2025-26, indicating potential plans for funding the ambitious expansion strategy.

As Sayaji Hotels Limited embarks on this significant growth phase, the reappointment of experienced directors and the unveiling of expansive plans signal a new chapter in the company's journey. With a focus on multi-brand development and a commitment to quality hospitality, Sayaji Hotels appears poised for substantial growth in the coming years.