SAMHI Hotels, a leading branded hotel ownership and asset management platform in India, has announced the addition of a new hotel to its portfolio through a long-term variable lease for an Upper Upscale property in Hyderabad. The 170-175 room hotel will be developed by converting an existing office building on the main arterial road of Hitec City, Hyderabad’s largest office micro-market, known for its dense concentration of Grade A office spaces.
The existing structure, offering 270,000 square feet of built-up area, is complete, and SAMHI will now begin fit-out work to transform it into a premium hospitality destination. Once operational, the hotel will be managed by a prominent international operator, marking a significant step for SAMHI as it expands its Upper Upscale offerings in one of India’s fastest-growing business hubs.
Ashish Jakhanwala, Chairman & Managing Director of SAMHI Hotels, expressed his enthusiasm about the project, stating, “This transaction aligns with our strategy of increasing the share of long-term leases for better capital efficiency and higher risk-adjusted returns. We are also proud to have executed one of the first office building conversions to a hotel, opening a new avenue for growth. With a quick conversion of this building to an Upper Upscale hotel, we have secured strong growth for our portfolio.”
With the addition of this property, SAMHI strengthens its presence in Hyderabad, where it already operates four hotels with a total of 8,781 rooms across different segments. This new lease deal is a part of SAMHI’s strategy to increase the share of revenue from leased assets, which, based on FY24 financials, currently contributes 13% of the company’s total revenue. The transaction will also help SAMHI reach its target of 20%+ revenue contribution from leased assets, which are noted for their capital efficiency.
