About Company

• Samhi Hotels Limited (“Samhi”) was incorporated on December 28, 2010.  Samhi is a prominent branded hotel ownership and asset management platform in India, with the 3rd largest inventory of operational keys (owned and leased) in India as of March 31, 2023. Within 12 years of starting their business operations, they have built a portfolio of 3,839 keys across 25 operating hotels in 12 of India’s key urban consumption centres, including Bengaluru, Hyderabad, National Capital Region (“NCR”), Pune, Chennai, and Ahmedabad, as of March 31, 2023. Pursuant to the completion of the ACIC Acquisition on August 10, 2023, their portfolio has further increased to 4,801 keys across 31 operating hotels. 

• Samhi has adopted an acquisition-led strategy, which is underpinned by their track record of acquiring and successfully turning around hotels to grow their business. They acquire or build primarily business hotels and take steps to further upgrade properties and engage with established branded hotel operators to allow the hotels to be appropriately positioned within the market. 

• Samhi currently categorizes their hotel portfolio into 3 distinct hotel segments based on brand classification – Upper Upscale and Upscale, Upper Mid-scale and Mid-scale. Over 51.14% of their Total Income for the Financial Year 2023, was from Upper Midscale and Mid-scale hotels. The Upper Mid-scale and Mid-scale segments offer significant growth opportunities in India due to their relevant price positioning and limited dependence on international travellers. Their Upper Upscale and Upscale hotels, which contributed to 47.35% of their Total Income for Financial Year 2023, are supported by markets with high density demand in cities such as Bangalore, Hyderabad, Ahmedabad, and Pune. 

• Company’s portfolio comprises 3,839 keys across 25 operating hotels in 12 of India’s key urban consumption centers, as of March 31, 2023. They also have a growth pipeline to add 2 additional hotels and 617 keys in existing cities as well as 2 new cities of Kolkata and Navi Mumbai, thereby increasing their presence to 14 key urban consumption centers. 

• On March 30, 2023, Samhi entered into a binding share subscription and purchase agreement with Asiya Capital and the ACIC SPVs (the “ACIC SSPA”) to acquire 962 keys across 6 operating hotels and a parcel of land for the development of a hotel in Navi Mumbai, Maharashtra (collectively, the “ACIC Portfolio” and such acquisition, the “ACIC Acquisition”). They completed the ACIC Acquisition on August 10, 2023 through the issuance of 37,462,680 Equity Shares to Asiya Capital. Pursuant to the ACIC Acquisition, they increased the number of keys in their total portfolio from 3,839 keys to 4,801 keys, and acquired the aforementioned parcel of land in Navi Mumbai, Maharashtra for development of an Upper Mid-scale hotel.

Strengths

Competitive Strength 

• Ability to Acquire Dislocated Hotels and Demonstrated Track Record to Re-rate Hotel Performance through Renovation and/or Re-branding;
• Portfolio’s Scale and Diversification Further Enhanced by Sector Tailwinds;
• Track Record to Operate Hotels Efficiently;
• Ability to Create Operating Arbitrage using Analytical Tools;
• Superior Governance and Seasoned Management Team.

Business Strategies 

• Position the hotels to benefit from favorable demand trends in the hospitality industry and enhance operating efficiencies;
• Complete development of identified opportunities that are currently under development;
• Pursue growth opportunities via programmatic capital deployment and tactical mergers and acquisitions;
• Ensure disciplined capital allocation and reduction of debt.

Company Promoters

Company Financials

Amount in ? Crore

Objects of the Issue

1. Repayment/ prepayment/ redemption, in full or in part, of certain borrowings availed of by the company and the subsidiaries including payment of the interest accrued thereon.
2. General corporate purposes.