Sayaji Hotels Limited , a prominent player in the Indian hospitality sector, has made a strategic move into the branded residential real estate market. The company's Board of Directors has approved multiple agreements for a new project in Nava Raipur Atal Nagar, Chattisgarh, marking a significant expansion of its brand portfolio.

Key Agreements and Partnerships

Sayaji Hotels has executed a Shareholders' Agreement with SRSB Infrastructure Private Limited, Zodiac Dealers Pvt. Limited, Shri Balaji Industrial Engineering Limited, and SMS Limited. Under this agreement, Sayaji will hold a 26% stake in SRSB Infrastructure, positioning itself as a key player in the new venture.

Additionally, three operational agreements have been signed with SRSB Infrastructure, covering:

1. Marketing and Licensing
2. Technical Services
3. Management Services

These agreements are aimed at developing Sayaji-branded residences on an approximately 18.64-acre plot in Nava Raipur Atal Nagar.

Financial Implications

The strategic move is expected to generate significant revenue for Sayaji Hotels:

The aggregate fees from these agreements are projected to be approximately ₹3.90 crore over the initial term, providing Sayaji Hotels with a new, long-term revenue stream.

Project Details

The project involves the development of Sayaji-branded residences, leveraging the company's hospitality expertise in the residential real estate sector. Sayaji Hotels will provide comprehensive support, including:

• Brand licensing
• Marketing assistance
• Technical expertise
• Operational management

This move aligns with the terms and conditions outlined in the Request for Proposal (RFP) and Notice of Award issued by the Nava Raipur Atal Nagar Vikas Pradhikaran (NRANVP) on August 4, 2025, in connection with Tender No. 163216.

Strategic Implications

This venture into branded residences represents a significant step for Sayaji Hotels, offering several potential benefits:

1. Expansion of the Sayaji brand beyond traditional hospitality
2. Enhanced brand visibility in the residential real estate sector
3. Creation of a sustainable, long-term revenue stream
4. Establishment of a strategic collaboration for integrated real estate and hospitality development

As the hospitality industry continues to evolve, Sayaji Hotels' move into branded residences demonstrates its adaptability and forward-thinking approach to growth and diversification.

Investors and market watchers will likely keep a close eye on how this new venture unfolds and its impact on Sayaji Hotels' overall business strategy and financial performance in the coming years.

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

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:

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.