Samhi Hotels , a prominent player in the Indian hospitality sector, anticipates a significant revenue boost if the government implements a proposed Goods and Services Tax (GST) rate reduction for hotel rooms. The company's stock currently trades at ₹207.08, with a market capitalization of ₹4,536.00 crore.

Potential Impact of GST Rate Cut

Ashish Jakhanwala, Chairman and Managing Director of Samhi Hotels, revealed that the company expects a 10-15% increase in revenue if the GST on hotel rooms priced at ₹7,500 or below is reduced. The proposed change would lower the tax rate from the current 12% (with input tax credit) to 5% (without input tax credit).

This potential tax adjustment could have a substantial impact on Samhi Hotels' operations, as Jakhanwala noted that 60-65% of the company's rooms fall within this pricing category. These rooms contribute to 45-50% of the company's revenues, primarily through popular brands such as Holiday Inn Express and Fairfield by Marriott.

Recent Financial Performance

Samhi Hotels reported robust financial results in its most recent quarter:

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin of 33.20% demonstrates strong operational efficiency in the competitive hospitality sector.

Market Segmentation

Samhi Hotels' business model shows a clear focus on the domestic market:

• Domestic business: 75% of operations
• International guests: 25% of operations

This distribution suggests that the company is well-positioned to benefit from growth in India's domestic tourism and business travel sectors.

Upcoming Investor Conference

According to the company's latest disclosure to the stock exchanges, Samhi Hotels officials will be participating in an investors conference organized by Elara Capital. The event is scheduled for September 4, 2025, in Mumbai, featuring one-on-one and group meetings with institutional investors.

The company has emphasized that discussions during these meetings will be based on publicly available information, adhering to regulatory guidelines by not disclosing any unpublished price-sensitive information.

As the hospitality industry in India continues to evolve, particularly with potential policy changes like GST rate adjustments, Samhi Hotels appears to be strategically positioned to capitalize on these developments. Investors and industry observers will likely keep a close watch on how these factors may influence the company's future performance and market standing.

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.