SAMHI Hotels Limited, a key player in branded hotel ownership and asset management in India, is set to expand its portfolio in Hyderabad with a newly signed long-term lease for an upper upscale hotel featuring 170-175 rooms. This strategic addition will bring a new level of luxury to Hyderabad’s Hitec City, a major business hub in the region.

In line with SAMHI’s plans, the new property will emerge from the conversion of an existing office building on Hitec City’s primary road, surrounded by high-density Grade A office spaces. With the structure’s 270,000 square feet already constructed, SAMHI will oversee the interior fit-out before operations commence under a renowned international hotel brand.

This expansion marks a continuation of SAMHI’s commitment to building a strong presence in Hyderabad’s booming office market. The company already operates four hotels in the city across different segments, and the addition of this upscale property will enhance its presence further. This lease also aligns with SAMHI’s goal to increase revenue contributions from leased assets, which accounted for 13% of total revenue in FY24. Through this and other recent expansions, including an acquisition in Bengaluru, SAMHI aims to boost revenue from leased properties to 20% and beyond.

SAMHI’s Chairman and Managing Director, Ashish Jakhanwala, shared his enthusiasm, stating, “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.”

This latest move reflects SAMHI’s approach of enhancing capital efficiency through long-term leases, while adding unique, upscale properties to key markets. The company’s recent collaborations, including rebranding agreements with Marriott, continue to strengthen its strategic growth.