SAMHI Hotels Limited today announced the signing of a long-term variable lease agreement for a premium hotel in Hitec City, Hyderabad. The 170-175 room hotel will be developed through the conversion of an existing office building with a built-up area of ​​approximately 270,000 square feet.

THE shares of SAMHI Hotels Limited were trading at ₹193.59, up ₹6.48 or 3.46 percent on the SNG today at 1 p.m.

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The expansion strengthens SAMHI’s presence in Hyderabadwhere it already operates four hotels with 878 rooms. The new property will be managed by a major international operator, although the specific brand was not disclosed in the announcement.

The deal aligns with SAMHI’s strategy to increase revenue contribution from leased assets, which currently represents 13% of total revenue based on FY24 financial results. this figure is more than 20 percent.

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“This transaction aligns with our stated strategy of increasing the share of long-term leases for better capital efficiency and higher risk-adjusted returns,” said Ashish Jakhanwala, Chairman and Managing Director, SAMHI Hotels Ltd.

SAMHI Hotels, listed on both BSE (543984) and SNG (SAMHI), currently operates 32 hotels with 4,943 keys across 13 Indian cities. The company maintains management agreements with global hotel operators, including Marriott, IHG and Hyatt.