SAMHI Hotels today announced the signing of an Agreement to Lease (“ATL”) with P Pramoda, P Harika, and Aurean Eskar (collectively the “Lessors”) for a ~260-room Mid-scale hotel to be developed as part of a mixed-use project in Hyderabad’s Financial District.
Development details
Under the agreement, the building will be developed by Aurean Eskar and subsequently handed over to SAMHI for fitouts and branding. The estimated development cost for SAMHI’s scope of work is ~₹1,250mn – ₹1,430mn.
Expanding SAMHI’s presence in Hyderabad
This hotel will mark SAMHI’s third property in the Financial District, alongside the Sheraton with 326 rooms, including 42 under development, in the Upscale+ segment, and the Fairfield by Marriott with 232 rooms in the Upper Mid-Scale segment. With this addition, SAMHI will now serve three distinct price points in Hyderabad’s Financial District, a micro-market witnessing robust office space development and strong economic activity, thereby strengthening our positioning and ability to capture the area’s expanding demand base.
With this addition, SAMHI reinforces its strategy of building scale and density in core micro-markets by offering high-quality branded hotels across multiple segments, thereby optimizing portfolio returns and driving long-term value creation.
The transaction is subject to customary conditions subsequent (“CS”) items, and the final lease deed will be executed upon receipt of requisite building sanctions for the construction of the building.
Leadership comments
Commenting on the development, Ashish Jakhanwala, Chairman & Managing Director, SAMHI Hotels Ltd. said, “With this agreement, we are deepening our presence in Hyderabad’s Financial District by adding a new mid-scale offering alongside our existing upscale and upper mid-scale hotels. This not only enables us to serve a wider customer base but also reflects our disciplined, capital-efficient approach to growth, with the long-term variable lease structure dovetailing into this strategy by linking commitments to the hotel’s performance and ensuring prudent capital deployment for value-accretive expansion.”
On behalf of Aurean Eskar, Managing Partners Pushkin Reddy and Rithwik Mali said, “We are delighted to collaborate with SAMHI Hotels on this landmark hospitality project in the Financial District and strengthen our commercial portfolio to include hospitality. This partnership reaffirms Aurean Eskar’s focused strategy of identifying high-potential opportunities and working with trusted partners to drive growth in a dynamic market. This development also marks an important step in bringing greater balance to the commercial real estate landscape of West Hyderabad and is poised to create long-term value for all stakeholders.”
