Samhi Hotels up 5% on adding upscale hotel in Hyderabad with 170-175 rooms

Samhi Hotels shares advanced 4.6 per cent in trade on Friday and logged an intraday high at Rs 195.8 per share on BSE. The northward movement in stock can be attributed to the company adding a new hotel to its portfolio by signing a long-term variable lease for an upper upscale hotel of 170-175 rooms in Hyderabad.  

 

Around 11:48 AM, Samhi Hotels shares were up 3.48 per cent at Rs 193.55  per share on BSE. In comparison, the BSE Sensex was down 0.17 per cent at 79,410.48. The market capitalisation of the company stood at Rs 4,265.72 crore. The 52-week high of the stock was at Rs 237.8 per share on BSE and 52-week low of the stock was at Rs 146.6 per share.

 

As per the filing, the hotel will be completed through the conversion of an office building located on the main arterial road of Hitec City. The structure is already completed with 270,000 sq. ft. of built-up area and Samhi will undertake the fit-out work of the building. 

 

"Through this lease agreement, Samhi strengthens its market share in Hyderabad, which has one of India’s largest and fastest-growing office markets. The company already owns and operates 4 hotels with 878 rooms in Hyderabad across segments," the filing read. 

 

The new hotel will be managed by a large international operator. 

 

The company believes on the basis of its FY24 financials, revenue from leased assets contributed 13 per cent to the total revenue. This transaction is likely to achieve the target of more than 20 per cent revenue contribution from leased assets which are significantly more capital efficient.

 

“I am delighted to announce the signing of a 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,” said Ashish Jakhanwala, chairman and managing director, Samhi Hotels 

 

In the past one year, Samhi Hotels shares have gained 22.5 per cent against Sensex's rise of 22.4 per cent.