SAMHI Hotels Limited IPO

SAMHI Hotels Limited is a prominent branded hotel ownership and asset management platform in India, with the third largest inventory of operational keys (owned and leased) in India as of March 31, 2023. The company has been in the business for the past 12 years and it has built a portfolio of 3,839 keys across 25 operating hotels in 12 cities, including Bengaluru (Karnataka), Hyderabad (Telangana), National Capital Region, Pune (Maharashtra), Chennai (Tamil Nadu) and Ahmedabad (Gujarat).

The company’s portfolio is diversified across key consumption centers in India, at different price-points and with established brands catering to a broad set of demand. The company currently categorizes the hotel portfolio into distinct hotel segments based on brand classification – Upper Upscale, Upscale, Upper Mid-scale and Mid-scale. Over 51.14% of our total income for the financial year 2023 was from Upper Mid-scale and Mid-scale hotels.

The company operates under long-term management contracts with established and well-recognized global hotel operators such as Marriott, Hyatt and InterContinental Hotels Group. These engagements benefit the company by giving them access to strong operating processes, sales and distribution experience, larger clientele and loyalty programs of such hotel operators.

The company has developed proprietary tools to manage and improve the performance of their hotels. With these tools, the company can leverage an extensive number of operating parameters and data that they we have across their hotels and use data analytics to improve their operations and acquisition strategy.

In March 2023, the company entered into a binding share subscription and purchase agreement with Asiya Capital and the ACIC SPVs (the “ACIC SSPA”) to acquire 962 keys across six operating hotels and a parcel of land for the development of a hotel in Navi Mumbai, Maharashtra.