Shares of Samhi Hotels Ltd. surged 5%, reaching a day’s high of Rs 195.92 on 8th November after the company announced the addition of a new upper upscale hotel to its portfolio, with a long-term variable lease for 170-175 rooms in Hyderabad.
The new hotel will be developed by converting an office building located on Hitec City’s main road. The structure, already completed with 270,000 sq. ft. of built-up area, will undergo fit-out work by Samhi.
According to the filing, this lease agreement will help Samhi increase its market share in Hyderabad, one of India’s largest and fastest-growing office markets. The company already owns and operates 4 hotels with 878 rooms in the city.
The new hotel will be managed by a major international operator.
Based on its FY24 financials, Samhi Hotels reported that revenue from leased assets contributed 13% to total revenue. This new lease agreement is expected to increase that contribution to over 20%, offering better capital efficiency.
Ashish Jakhanwala, Chairman and Managing Director of Samhi Hotels, expressed pride in securing a long-term variable lease in Hitec City, Hyderabad. He highlighted that this aligns with the company’s strategy to increase long-term leases for better capital efficiency and higher returns. The conversion of an office building into an Upper Upscale hotel marks a new growth avenue for the company.
So far, in 2024, the stock has surged by nearly 11.5%. Currently, the firm’s market capitalisation stands at around Rs 4,239 crore.
At 01:18 PM, the shares of Samhi Hotels were trading 3% higher at Rs 192.72 on NSE.
Tired of missing hot stocks? Unicorn Signals provides powerful tools like stock scans and more help you make informed trading decisions. Download now and take control of your portfolio!