In a strategic move to deepen its presence in one of India’s fastest-growing hospitality markets, SAMHI Hotels Ltd has announced that its wholly owned subsidiary, Barque Hotels Private Limited, has signed an Agreement to Lease for a new 260-room mid-scale hotel in Hyderabad’s Financial District. The development marks a significant addition to SAMHI’s multi-segment strategy and reinforces its commitment to asset-light growth through innovative leasing structures.
Key Highlights
Barque Hotels signs lease for a 260-room mid-scale hotel in Hyderabad’s Financial District
The hotel will be part of a mixed-use development project led by Aurean Eskar Homes LLP
Estimated development cost for SAMHI’s scope: ₹1,250–1,430 million
Innovative long-term variable lease structure aligns operating performance with land valuation
The property complements SAMHI’s existing Sheraton and Fairfield by Marriott hotels in the same micro-market
Project Overview and Development Structure
The newly signed lease agreement outlines a two-phase development process:
Construction Phase Aurean Eskar Homes LLP will develop the building infrastructure within a pre-defined timeline. The structure will be part of a larger mixed-use project, integrating commercial and hospitality elements.
Fit-Out and Branding Phase Upon completion of the building, SAMHI will take possession to execute hotel fit-outs, branding, and operational readiness. The hotel will be managed by a major international operator, although the brand name has not yet been disclosed.
This phased approach allows SAMHI to optimize capital deployment and focus on operational excellence once the asset is ready for handover.
Lease Structure and Strategic Rationale
SAMHI has opted for a long-term variable lease model, a structure that ties lease payouts to the hotel’s operating performance rather than fixed obligations. This model offers several advantages:
Aligns interests between SAMHI and the landowners
Mitigates fixed lease risks during market downturns
Enables participation in upside during periods of strong performance
The lease structure reflects SAMHI’s broader strategy to increase revenue contribution from leased assets, which accounted for 13 percent of total revenue in FY24. The company aims to push this figure beyond 20 percent in the coming years.
Strengthening the Hyderabad Portfolio
The new mid-scale hotel will join SAMHI’s existing properties in Hyderabad’s Financial District:
Sheraton Hyderabad: 326 keys, including 42 under development, positioned in the Upscale+ segment
Fairfield by Marriott: 232 keys, serving the Upper Mid-Scale segment
With the addition of this 260-room mid-scale hotel, SAMHI will offer a diversified portfolio across price points, catering to business travelers, leisure guests, and long-stay customers. This multi-segment strategy is designed to capture a wider demand spectrum and enhance risk-adjusted returns.
Market Impact and Future Outlook
Hyderabad continues to be a high-growth hospitality market, driven by its booming IT corridor, expanding financial services sector, and increasing MICE (Meetings, Incentives, Conferences, and Exhibitions) activity. SAMHI’s expansion in this region positions it to benefit from:
Rising demand for branded accommodations
Increased corporate travel and long-stay requirements
Strategic location advantages within the Financial District
Sanjay Jain, Senior Director of Corporate Strategy at SAMHI, noted that the deal reinforces the company’s commitment to capital-efficient growth and strengthens its presence in core micro-markets.
Conclusion
SAMHI Hotels’ latest lease agreement through Barque Hotels marks a pivotal step in its asset-light expansion strategy. By adding a 260-room mid-scale hotel to its Hyderabad portfolio, the company is not only diversifying its offerings but also reinforcing its position as a leading branded hotel ownership and asset management platform in India. With a smart lease structure and a prime location, this development is poised to deliver long-term value for stakeholders and guests alike.
Sources: ScanX News Rediff MoneyWiz Hotel Management Network
