‘Samhi Hotels to be a ₹3,000 crore topline business’

Hotel owner company Samhi Hotels Ltd, which operates hotels under multiple brands such as Marriott International and IHG, aims to more than double its revenue ₹3,000 crore in the next few years.

The owner has expanded its portfolio across key Indian cities and is now making a strategic investment in boutique accommodation platform Rare India, said Ashish Jakhanwala, chairman and managing director of the hotel. Mint. Nadir curates and promotes experiential, boutique and owner-managed hotels across the Indian subcontinent.

Samhi’s chairman said the next phase of growth will be driven by new stocks in markets such as Hyderabad and Bengaluru, as well as steady growth in existing properties. “We’re trying, at least for a while.” ₹3,000 crore revenue from our current situation ₹1,200 crore,” Jakhanwala said. “This is largely due to the new inventory we will add in cities like Hyderabad and Bengaluru, among others. “We continue to hope for same-store growth of 9-10% as inventory comes into play.”

Samhi has a diversified portfolio across different hotel segments. Its portfolio currently includes approximately 7,500 rooms, of which 2,000 are in the midscale category, roughly 2,000 in the upper midscale segment, and approximately 2,400 in luxury and upscale hotels (5-star hotels). The medium-sized category generally corresponds to 3-star hotels that offer basic services and reasonable prices. Upper midsize hotels generally fall into the four-star category, offering larger rooms, better amenities and stronger brand positioning.

Expansion after profit pivot

Currently, about 45% of Samhi’s revenues come from luxury properties, while the remaining 55% comes from the broader midscale category, which includes brands such as Holiday Inn Express and Fairfield by. Marriott. As new properties open, this mix will shift further towards luxury hotels. “When our W and Westin hotels open, this ratio will shift to close to 65% luxury and close to 35% midscale,” Jakhanwala said.

Samhi’s expansion plans come after a sharp improvement in its financial performance. In FY25 the company reported profit after tax ₹85.5 billion compared to net loss ₹338.6 crore in FY24. This improvement reflects strong hotel demand, increased occupancy and better operating performance across the portfolio.

Jakhanwala said domestic travel demand remains resilient despite periodic disruptions such as monsoon-related travel disruptions or airline operating issues. “Domestic demand is extremely strong,” he said. “Even with all these disruptions, the worst quarter we had was about 9-10% annual same-store revenue growth.” This performance is broadly in line with Samhi’s long-term same-store growth target of 9-11%.

The bet on Rare India, the platform representing independent experiential hotels, will be a bigger play as Marriott’s distribution platform Bonvoy markets these hotels on its platform. Samhi acquired 70% stake in Rare India with a total investment of approximately 1.5 million Euros. ₹Including around 45 crore ₹30 crore upfront. Company founder Shoba Mohan will retain the remaining stake.

Hotels in neighboring countries

“Rare is a 23-year-old company with approximately 70 hotels in 15 states, Nepal and Bhutan, and the quality of the properties is truly rare,” he added. Rare’s network includes nearly 1,000 rooms in boutique properties in a variety of destinations, from wildlife reserves to mountain retreats and heritage locations. Samhi plans to transform Rare from a representation platform into a broader brand and distribution platform for independent boutique hotels.

Rare will sign a partnership agreement with Marriott International, giving it exclusive rights to add properties to Marriott’s Outdoor-Collection on its loyalty platform in India, Sri Lanka, Nepal and Bhutan. Most of the hotels represented by Rare already have premium room rates, with about 60% selling for over 200,000. ₹25,000 per night.

Samhi’s investment in the company is also aimed at helping it understand the fast-growing leisure accommodation segment before committing large amounts of capital to build resorts, he said. The company has historically focused largely on urban hotels catering to business travelers.

Jakhanwala stated that demand in entertainment destinations can fluctuate quickly depending on travel trends and said, “We are not convinced about investing in large entertainment hotels.” Instead, the company favors smaller, experience-focused properties that focus on unique locations and special accommodations. “Globally, there is a complete shift where experience-focused small hotels are breaking price barriers,” he said.

I want to learn

He added that the Rare platform will allow Samhi to observe customer behavior, pricing models and operating dynamics at boutique entertainment facilities. Hotel manager in these lines in 2023 Hyatt has announced the acquisition of travel platform Mr & Mrs Smith for £53 million to boost its luxury leisure portfolio and add more than 1,500 boutique hotels and a loyalty network.

Ratings agency Icra expects India’s premium hotels to continue their strong performance in FY2026, with occupancy rate at 72-74% and average room rates rising to 2020 ₹8,200-8,500 and operating margins are at 34-36% as demand continues to outpace supply.