PhillipCapital turned bullish on SAMHI Hotels, one of India’s largest hotel ownership and asset management platforms. With a ‘BUY’ recommendation and a target of INR 243 per share, the brokerage sees a 39% upside from the current price of around INR 176 per share. The report calls SAMHI a next-gen hospitality stock to benefit from deep structural tailwinds, global partnerships and operational efficiency driven by technology.
From Niche Beginnings to a Hospitality Powerhouse
Founded in 2010 by Ashish Jakhanwala and Manav Thadani, SAMHI Hotels started with a 60% stake in Barque Hotels, which was managing the Formule 1 brand under Accor Group. By 2017, SAMHI acquired the remaining 40% and rebranded the entire portfolio into Holiday Inn Express with IHG.
Over the next decade, SAMHI diversified and expanded its portfolio, formed strong partnerships with Marriott International, InterContinental Hotels Group (IHG) and Hyatt—three of the largest hotel brands globally. This made SAMHI Hotels the largest multi-brand hotel owner-operator in India.
As of FY24, SAMHI operates:
- 4,823 keys across 31 properties
- Presence in 13 major Indian cities
- Three global flags: Marriott, Hyatt, and IHG
- A pipeline of 500+ additional rooms, predominantly in Bangalore and Hyderabad
Deep Presence in High-Growth Corporate Markets
SAMHI’s strategy is razor-focused on acquiring and repositioning hotels in high-yield office markets, particularly Bengaluru (27% of inventory) and Hyderabad (20%), which are major hubs for IT, finance, and multinational businesses. These cities provide a constant influx of business travelers and MICE (Meetings, Incentives, Conferences, Exhibitions) traffic, making SAMHI Hotels a B2B hospitality play with structural advantages over leisure-focused peers.
PhillipCapital emphasizes this geographic concentration as a key moat, enabling sustained occupancy, higher average daily rates (ADR), and lower seasonality risk.
Brand Partnerships: Global Muscle, Local Reach
Unlike many unbranded or self-managed hotel portfolios, SAMHI has aligned itself with industry giants:
- Marriott International – including brands like Fairfield and Four Points by Sheraton
- IHG – operator of Holiday Inn Express
- Hyatt – upscale hotels in key urban centers
These partnerships offer direct access to global booking platforms, loyalty programs, and operating standards, while allowing SAMHI to maintain asset control. SAMHI Hotels commanded:
- 43% of India’s Fairfield by Marriott market
- 30% share in Four Points by Sheraton
This alignment also translates to cost savings, brand-driven demand, and premium pricing—critical elements for margin expansion in a competitive industry.
Operational Excellence Through Turnaround and Technology
One of SAMHI’s core strengths lies in its turnaround capabilities. Over the last two years, the company has successfully acquired underperforming hotel assets, optimized cost structures, improved ARRs (Average Room Rates), and transitioned many properties to a Variable Lease Model, reducing fixed costs and enhancing scalability.
PhillipCapital projects a 58.9% CAGR in Profit After Tax (PAT) between FY25 and FY27, driven by:
- Operational efficiency
- Portfolio rebranding
- Economies of scale
- Higher RevPAR (Revenue per Available Room)
Supporting this is SAMHI’s in-house technology stack:
- SAMHIIntel – a proprietary AI-analytics platform that monitors financial and non-financial KPIs to improve performance across the portfolio.
- SAMConnect – an IoT-based platform for real-time facility management, predictive maintenance, and energy optimization.
This tech infrastructure not only improves guest experience but also preserves asset quality and reduces opex across properties.
A History of Institutional Backing and Strategic Capital
From its early days, SAMHI Hotels attracted elite institutional investors, which added credibility and long-term capital support:
- GTI Capital – Venture firm co-founded by Gaurav Dalmia and Jonathan Schulhof
- Equity International – Founded by legendary U.S. real estate investor Sam Zell
- Goldman Sachs – Participated in equity rounds
As of December 2024:
- Asiya Capital held a 17% stake
- GTI Capital retained 1.5%
- Equity International (via Blue Chandra) owned 4%
The management’s alignment with shareholder value is also evident in the 5.5 million ESOPs issued in 2023 to key executives. Notably, CMD Ashish Jakhanwala and co-founder Manav Thadani each hold ~0.4% pre-IPO stake, with ESOPs vesting over four years.
Samhi Hotels Post-IPO Performance
Samhi Hotels launched its IPO on 14 September 2023, with an issue size of INR 1,370 crore. The issue was subscribed 533% and listed with 13.80% returns. Post-listing, the IPO made an all-time high of INR 226 per share, reflecting a 79.36% returns over investment. Currrently, it is trading around INR 175 per share (a correction of 29% from its all-time high).
Financial Outlook and Valuation Comfort
SAMHI’s capital-efficient structure, lean fixed cost base, and asset-light growth strategy lend comfort to long-term investors. The company’s upcoming capacity addition in large urban corridors, coupled with margin expansion, is expected to drive substantial cash flow generation by FY26.
PhillipCapital’s INR 243 target price factors in:
- High-growth earnings trajectory
- Valuation comfort relative to peers
- Strong leverage to corporate travel recovery
- Pipeline expansion and occupancy resilience
Verdict: A High-Conviction Midcap Story in Indian Hospitality
In an industry historically plagued by cyclicality, oversupply, and inconsistent profitability, SAMHI stands out for its disciplined expansion, tech-enabled operations, and deep institutional pedigree.
PhillipCapital’s call is a signal of confidence in SAMHI’s business model transformation, brand alignment, and long-term strategy. With its positioning as a structural play on India’s corporate-led travel ecosystem, the stock offers a unique combination of stability and scalability.
👉 Rating: BUY
🎯 Target Price: INR 243
📈 Potential Upside: 39%
🕒 Investment Horizon: Medium to Long-Term (12–18 months)
Disclaimer: This article is based on publicly available reports and research data. Investors are advised to perform their own due diligence or consult a certified financial advisor before investing.