SAMHI Hotels Limited has announced the signing of a long-term variable lease for a new Upper Upscale hotel in Hitec City, Hyderabad, which will feature 170-175 rooms. The hotel will be developed by converting an existing office building on a key road in Hitec City, known for its dense portfolio of Grade A office spaces.
This addition to SAMHI's portfolio will enhance its presence in Hyderabad, a rapidly growing office market. The company currently operates four hotels totalling 8781 rooms in the city, and a major international operator will manage this new property.
With revenue from leased assets accounting for 13 per cent of SAMHI's total revenue in FY24, this development is expected to contribute to the company's aim of achieving over 20 per cent revenue from leased assets, capitalising on the efficiency of such agreements.
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."
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