Why Samhi Hotels shares surged 12% in trade today? Check details

Samhi Hotels share price today: Shares of Samhi Hotels surged over 12 per cent to hit an intraday high of ₹196.90 on Thursday after the company announced its strategic partnership with global institutional investor GIC. 

Singapore-based sovereign wealth fund GIC will acquire a 35 per cent stake in three subsidiaries of Samhi Hotels that together own Courtyard & Fairfield by Marriott Bengaluru ORR, Hyatt Regency Pune and recently acquired Trinity Hotel in Bengaluru Whitefield. 

 

At 2:30 PM on Thursday, Samhi Hotels' stock was quoting at ₹193.53, up 11.26 per cent on the National Stock Exchange (NSE). In comparison, the benchmark Nifty50 index was trading at 24,249.10, down 79.85 points or 0.33 per cent.

 

The acquisition will be made for an investment of ₹752, marking the enterprise value of three assets at ₹2,200 crore. Out of the proceeds, ₹604 crore will utilised to reduce the debt across Samhi's portfolio and cover deal expenses. The remaining ₹149 crore will be used over the next two years to partially fund the capital expenditure for the Westin/Tribute Portfolio Bengaluru Whitefield dual-branded hotel.  ALSO READ: Cement shares rally up to 5%, UltraTech, JK hit record highs; here's why

 

"The transaction follows our stated strategy of capital recycling and will lead to a significant reduction in debt and partnership with a global investor of GIC's stature for funding further growth," the company said in an exchange filing. 

 

After closing the transaction, the company expects its debt to be reduced by ₹580 crore and an improvement of around 15-20 per cent in its net profit. The company also expects to see a significant improvement in its future cash flows due to a reduction in debt and Westin / Tribute Portfolio Bengaluru Whitefield capital expenditure by GIC.

 

Following the transaction, Samhi Hotels will own a 65 per cent stake in each of the three subsidiaries. 

 

Samhi Hotels' stock history

The stock has fallen around 20 per cent from its 52-week high of ₹225.48 touched on September 06, 2024. The company’s total market capitalisation stood at ₹4,281 crore. On a year-to-date basis, the stock has gained around 5 per cent compared to a 2 per cent increase in the Nifty50 index.   ALSO READ: NSE revises criteria for SME stocks to shift to mainboard; check new rules

 

About Samhi Hotels

Incorporated in 2010, Samhi Hotels is a hotel ownership and asset management platform based in India. It has long-term management arrangements with three global hotel operators including Marriott, IHG and Hyatt. Samhi has a portfolio of 31 operating hotels comprising 4,823 keys. The company has a geographic presence in 13 cities across India, including the National Capital Region (NCR), Bengaluru, Hyderabad, Chennai and Pune. Samhi’s hotels operate under hotel operator brands such as Courtyard by Marriott, Sheraton, Hyatt Regency, Hyatt Place, Fairfield by Marriott, Four Points by Sheraton and Holiday Inn Express.