The structure isalreadycompleted withN270,000sq.ft.ofbuilt-upareaandSAMHI willnowundertake thefit-out work of the building.
SAMHI, a branded hotel ownership and asset management platform in India announces the addition of a new hotel to its portfolio by signing a long-term variable lease for an Upper Upscale hotel of 170 -175 rooms in Hyderabad.
The hotel will be completed through conversion of an office building located on the main arterial road of Hitec City, the largest office micro-market in Hyderabad and surrounded by a high density of Grade A office stock. The structure is already completed with N270,000 sq.ft. of built-up area and SAMHI will now undertake the fit-out work of the building.
Through this lease agreement, SAMHI strengthens its market share in Hyderabad, which has one of the India’s largest & fastest growing office markets. The Company already owns and operates 4 hotels with 8781 rooms in Hyderabad across segments. This transaction will further add 170 -175 rooms in the Upper Upscale segment which will be managed by a large international operator.
Basis FY24 financials, revenue from leased assets contributed 13% to SAMHl’s total revenue. This transaction will help us in achieving the target of20%+ revenue contribution from leased assets which are significantly more capital efficient. The hotel once completed will also increase our share of our Upper Upscale & Upscale assets in a key market after our last acquisition in Bengaluru.
Commenting on the performance, Ashish Jakhanwala, Chairman & Managing Director, SAMHI Hotels Ltd. said, “I am delighted to announce the signing of long-term variable lease in Hitec City, Hyderabad. This transaction aligns with our stated 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, which opens up a new avenue for our growth. With a quick conversion of this building to an Upper Upscale hotel, we have secured strong growth for our portfolio.”
