SAMHI Hotels Acquires White Hotel

SAMHI Hotels Limited has announced that the execution of the Share Purchase Agreement (“SPA”) for the acquisition of Innmar Tourism and Hotels Private Limited (“ITHPL”) has been completed.

The acquisition includes an operating hotel with 142 rooms in Whitefield, Bengaluru, one of India’s vital commercial markets. There is also an opportunity for further expansion to add a second hotel with 200-220 rooms, which would bring the total inventory of the complex to 340-360 rooms in the Upper Upscale & Upscale segment.

SAMHI is enhancing its presence in Bengaluru, India's largest and fastest-growing office market, through this acquisition. The company owns and operates six hotels with 9181 rooms across different market segments in Bengaluru. With this acquisition, an immediate addition of 142 rooms is expected, and an additional 200-220 rooms will be added over time. The two new hotels will be managed under the Upper Upscale and Upscale brands, with a major international operator in the final stages of negotiation.

The 340-360-room hotel complex in Whitefield, Bengaluru, is expected to significantly boost the same-store growth of SAMHI's existing portfolio. This is due to the strong performance of its hotels in the Upper-Upscale and Upper-Upscale segments. After the completion of the renovation and proposed expansion, this complex will become the second "twin hotel complex" owned by SAMHI, with the first being the 336-room Courtyard by Marriott & Fairfield by Marriott in Outer Ring Road ("ORR") Bengaluru. The acquisition cost is ₹2,050 million (Enterprise Value), adjusted for net current assets, including cash and other working capital. Following this transaction, ITHPL will operate as a wholly-owned subsidiary of SAMHI Hotels Ltd. The acquisition is being fully financed from the company's internal accruals.

Commenting on the performance, Ashish Jakhanwala, Chairman & Managing Director of SAMHI Hotels Ltd., said, “I am delighted to announce the acquisition of Innmar Tourism and Hotels Private Limited (ITHPL). This transaction aligns with our growth strategy, focusing on large office and aviation market turnaround opportunities. We are confident that with the planned rebranding of the existing hotel and its repositioning in the upscale segment and addition of a second hotel in the upper-upscale segment within the same complex, we would add tremendous value for our Company.”

1: Includes 54 new rooms in Holiday Inn Express Bengaluru (Whitefield) – scheduled to open in Q3FY25

About SAMHI Hotels Ltd.

SAMHI is a prominent branded hotel ownership and asset management platform in India with an institutional ownership model, experienced leadership and a professional management team. SAMHI has long-term management arrangements with three well-known global hotel operators: Marriott, IHG and Hyatt. SAMHI has a portfolio of 32 operating hotels comprising 4,943 keys and has a diverse geographic presence in 13 cities across India, including the National Capital Region (NCR), Bengaluru, Hyderabad, Chennai and Pune.