Samhi Hotels Expansion Strategy Targets ₹3,000 Crore Revenue
Samhi Hotels Ltd is aiming to more than double its revenue to ₹3,000 crore over the next few years as part of a major expansion strategy focused on new inventory and boutique hospitality investments.
The company, which owns and operates hotels under global brands such as Marriott International and IHG Hotels & Resorts, currently generates around ₹1,200 crore in topline revenue.
According to chairman and managing director Ashish Jakhanwala, the next growth phase will be driven by new hotel openings in key business travel markets including Hyderabad and Bengaluru, alongside steady growth at existing properties.
“We are gunning for at least ₹3,000 crore in topline from our current ₹1,200 crore,” Jakhanwala said, noting that new inventory and sustained demand for domestic travel will support this growth.
Samhi Hotels Revenue Growth Driven by New Hotel Inventory
A key pillar of theSamhi Hotels expansion strategy is the addition of new hotel inventory across India’s fastest-growing urban markets.
The company currently manages a diversified portfolio of around 7,500 rooms across different hotel segments, including mid-scale, upper mid-scale, and upscale categories.
-
Around 2,000 rooms fall under the mid-scale segment
-
Another 2,000 rooms belong to upper mid-scale properties
-
Nearly 2,400 rooms are part of upscale and upper upscale hotels
Mid-scale properties, typically in the three-star category, provide essential services at moderate prices. Upper mid-scale hotels fall in the four-star bracket, offering larger rooms and enhanced amenities.
Jakhanwala expects same-store revenue growth of around 9–10% annually, supported by strong domestic travel demand across India.
Hospitality industry analysts say India’s hotel sector is currently benefiting from sustained growth in corporate travel, domestic tourism, and international arrivals.
Samhi Hotels Portfolio Shifts Toward Upscale Hospitality
Another major element of the Samhi Hotels growth plan is a gradual shift toward the upscale hotel segment.
Currently, about 45% of Samhi’s revenues come from upscale properties, while the remaining 55% comes from mid-scale brands such as Holiday Inn Express and Fairfield by Marriott.
However, this balance is expected to change significantly as new luxury properties open in the coming years.
According to Jakhanwala, once the company’s upcoming W Hotels and Westin Hotels properties become operational, the revenue mix will shift to:
-
65% upscale hotels
-
35% mid-scale hotels
This strategic shift reflects rising demand for premium accommodation in India’s major business and tourism destinations.
Industry experts note that upscale hotels typically deliver higher average daily rates and stronger profit margins compared to mid-scale properties.
Rare India Boutique Hotel Investment Expands Leisure Portfolio
A major highlight of the Samhi Hotels expansion strategy is its investment in boutique hospitality platform Rare India.
Samhi has acquired a 70% stake in Rare India for around ₹45 crore, including an upfront investment of about ₹30 crore. Founder Shoba Mohan will retain the remaining stake.
Rare India curates a network of experiential boutique hotels across the Indian subcontinent. The platform currently represents around 70 independent hotels across 15 Indian states, as well as properties in Nepal and Bhutan.
These properties collectively offer around 1,000 rooms in unique locations including:
-
Wildlife reserves
-
Heritage destinations
-
Mountain retreats
-
Cultural tourism regions
Many of these boutique properties command premium room rates, with nearly 60% charging over ₹25,000 per night.
Jakhanwala described Rare India as a strategic entry point into the high-margin experiential leisure travel market.
Marriott Bonvoy Partnership to Scale Boutique Hospitality Network
The Rare India platform will also benefit from a distribution partnership with Marriott International.
Under this arrangement, Rare will sign an affiliation agreement with Marriott’s Outdoor Collection, allowing independent boutique hotels to access the global reach of the Marriott Bonvoy loyalty ecosystem.
The agreement grants Rare exclusive rights across India, Sri Lanka, Nepal and Bhutan to onboard eligible boutique properties to the platform.
This move is expected to significantly increase the visibility of independent experiential hotels among international travellers.
Globally, major hotel companies have increasingly partnered with boutique platforms to expand their luxury leisure offerings. A similar strategy was adopted by Hyatt Hotels Corporation when it acquired boutique travel platform Mr & Mrs Smith.
Strong Domestic Travel Demand Supports Hotel Industry Growth
Samhi’s aggressive expansion plans come after a sharp financial turnaround for the company.
In FY25, Samhi reported a profit after tax of ₹85.5 crore, compared with a net loss of ₹338.6 crore in FY24.
The improvement reflects:
-
Higher hotel occupancy levels
-
Strong domestic travel demand
-
Improved operational efficiency
Jakhanwala emphasized that domestic travel demand in India has remained resilient despite periodic disruptions such as airline operational challenges or seasonal travel fluctuations.
According to industry estimates from ratings agency Icra, India’s premium hotel segment is expected to maintain strong performance in FY2026, with:
-
Occupancy rates between 72–74%
-
Average room rates rising to ₹8,200–₹8,500
-
Operating margins reaching 34–36%
As supply remains limited in many major cities, demand continues to outpace available hotel inventory.
Future Outlook for Samhi Hotels and Boutique Hospitality
Looking ahead, Samhi plans to use the Rare India platform to better understand customer preferences in the rapidly growing leisure and experiential travel segment.
Historically, the company has focused on urban business hotels, but the boutique investment will allow it to explore smaller, experience-driven hospitality formats before committing large-scale capital to resort development.
Jakhanwala noted that global hospitality trends increasingly favour smaller, unique hotels offering curated experiences, which are often able to command premium pricing.
With strong domestic tourism demand and growing interest in experiential travel, Samhi Hotels appears poised to play a significant role in shaping the next phase of India’s hospitality industry growth.
