SAMHI Hotels share price jumped 2.41 percent on Friday. The stock declined from yearly highs at Rs 254 but now is looking strong on technical charts. SAMHI has strong potential and if the management can keep on reporting strong numbers, this stock can be a good long term bet. In other news, SAMHI Hotels is advancing its footprint in Hyderabad’s Financial District with a strategic new mid-scale property, complementing its upscale and upper mid-scale offerings in the same vibrant business hub. This expansion underscores SAMHI’s commitment to portfolio diversification and capital-efficient growth in high-potential micro-markets. Financially, the company reported robust quarterly results for Q1 FY26, highlighted by substantial growth in revenue, EBITDA, and net profit despite geopolitical disruptions, signaling strong operational resilience. SAMHI's disciplined approach to asset management, including strategic acquisitions, divestments, and rebranding, positions it well for long-term value creation and shareholder return enhancement.

SAMHI Hotels Expands in Hyderabad’s Premier Business Hub

SAMHI Hotels has taken a decisive step to deepen its presence in Hyderabad’s rapidly evolving Financial District by signing an Agreement to Lease for a new mid-scale hotel featuring approximately 260 rooms. This property will be developed as part of a mixed-use project managed by Aurean Eskar, who will handle the building construction before handing it over to SAMHI for fitouts and brand integration. The company is expected to invest between ₹1,250 million and ₹1,430 million for its scope of development relating to this hotel.

This new addition marks SAMHI’s third venture within this strategic micro-market, joining its existing Sheraton property—boasting 326 rooms and a further 42 under development in the upscale+ segment—and the Fairfield by Marriott property with 232 rooms in the upper mid-scale segment. By covering a broader spectrum of price points—upscale+, upper mid-scale, and mid-scale—SAMHI is poised to capture a larger share of the Financial District’s growing demand driven by ongoing office space expansions and robust economic activity. This multi-tiered presence enhances its competitive positioning and underlines a deliberate strategy to optimize returns through portfolio diversification.

Strategic Rationale Behind Expanding Scale and Depth

SAMHI’s approach explicitly targets building scale and density in high-growth core micro-markets, leveraging its capacity to offer strong branded experiences across various market segments. The group’s strategy seeks to maximize portfolio performance by balancing capital deployment with market potential, driving durable value creation over time. The new mid-scale hotel, structured under a long-term variable lease agreement, underscores this philosophy by linking financial exposure and commitments directly to operational performance. Such an approach ensures capital efficiency and prudent risk management.

The transaction remains contingent on customary conditions and obtaining all necessary regulatory sanctions for development; the final lease deed execution depends on these approvals. This cautious but confident method reflects SAMHI’s disciplined growth ethos, carefully balancing expansion opportunities with responsible financial stewardship.

Voices from Leadership: Insights on Growth and Partnership

Ashish Jakhanwala, Chairman & Managing Director of SAMHI Hotels Ltd., emphasized that this development marks a significant expansion of the company's footprint in Hyderabad’s Financial District. He highlighted the strategic advantage of operating across multiple market segments, enabling the company to address a more diverse customer base. Jakhanwala also stressed the capital-efficient nature of the growth facilitated by the variable lease mechanism, aligning financial commitments with the hotel’s performance, hence prioritizing value-accretive expansion.

From the development partner's perspective, Aurean Eskar’s managing partners Pushkin Reddy and Rithwik Mali conveyed enthusiasm about the collaboration, pointing to the project as a milestone within the West Hyderabad commercial real estate landscape. They view this partnership as part of Aurean Eskar's broader strategy to diversify its commercial portfolio by capitalizing on dynamic market opportunities and trusted collaborations, aiming to deliver long-term value for all stakeholders involved.

Robust Financial Performance Underpins Growth Ambitions

SAMHI Hotels reported a strong financial performance for the quarter ending June 30, 2025, displaying resilience amidst temporary geopolitical headwinds that affected May’s business metrics. Key financial highlights for Q1 FY26 include:

Total income rose 13.0% year-over-year to ₹2,873 million.

EBITDA increased 18.6% year-over-year, reaching ₹1,056 million.

Profit after tax surged by 353.8% year-over-year to ₹192 million.

Occupancy rates stood healthy at 74%.

Revenue per available room (RevPAR) improved 10.3%, reaching ₹4,760 compared to the previous year.

Despite the short-term disruption in May 2025 linked to geopolitical events, the company’s operational metrics rebounded in June, aligning closely with April’s performance and demonstrating the flexibility and depth of its portfolio.

Capital Strategy and Portfolio Optimization

Jakhanwala illustrated how recent strategic moves, including the partnership with GIC, have fortified SAMHI’s balance sheet, facilitating continued growth and expansion. The company envisioned a robust pipeline of assets under rebranding and development, fueling confidence in the firm’s long-term trajectory.

Moreover, SAMHI has actively embraced capital recycling strategies to optimize shareholder value. The recent agreement to sell the Caspia Hotel in New Delhi is consistent with this approach, enabling the company to redeploy capital into higher-return opportunities. Since 2023, SAMHI has completed asset sales exceeding ₹2.1 billion with an average enterprise value to EBITDA multiple near 20x, complemented by significant minority dilution in favor of GIC totaling approximately ₹7.5 billion. Concurrently, the firm has committed over ₹310 billion toward new acquisitions and rebranding initiatives, prioritizing ventures with substantial return premiums.

Outlook and Investment Considerations

SAMHI Hotels exhibits a disciplined commitment to growth driven by operational excellence, capital efficiency, and transparent communication. The company’s multi-segment strategy within a dynamic emerging market microcosm like Hyderabad’s Financial District enables it to capture growing demand with tailored offerings.

Investors should note the strong underlying financial metrics, resilient occupancy and RevPAR trends, and prudent capital allocation strategies that collectively enhance SAMHI’s investment thesis. The firm’s ability to deploy variable lease structures effectively mitigates risk while fostering scalable expansion. Additionally, ongoing portfolio optimization through targeted asset sales and rebranding should contribute to sustained margin enhancements.

In sum, SAMHI Hotels presents a compelling model of strategic growth, operational robustness, and financial discipline—key factors that stand to support continued value creation amid India’s evolving hospitality market landscape.