SAMHI HOTELS LIMITED

SAMHI HOTELS LIMITED - IPO DETAILS 

Company Overview 

Established in 2010, SAMHI Hotels Limited is an Indian-based hotel ownership and asset management platform with a focus on branded hotels. As of March 31, 2023, SAMHI Hotels boasts a portfolio comprising 4,801 rooms distributed across 31 operational hotels located in 14 of India's major urban consumption centers, including Bengaluru, Karnataka; Hyderabad, Telangana; the National Capital Region (NCR); Pune, Maharashtra; Chennai, Tamil Nadu; and Ahmedabad, Gujarat. Additionally, the company has two hotels currently in development, which will add a total of 461 rooms to its inventory in Kolkata and Navi Mumbai. 

On August 10, 2023, SAMHI Hotels Limited completed the acquisition of Asiya Capital and the ACIC SPVs (referred to as the ACIC SSPA). This strategic move added 962 keys available across six operational hotels to SAMHI's portfolio, along with land for the development of a new hotel in Navi Mumbai, Maharashtra. SAMHI's hotels are affiliated with well-established and renowned hotel operators such as Courtyard by Marriott, Sheraton, Hyatt Regency, Hyatt Place, Fairfield by Marriott, Four Points by Sheraton, and Holiday Inn Express. This partnership with recognized hotel operators grants SAMHI's properties access to a range of benefits, including participation in the operator's loyalty programs, access to their management and operational expertise, implementation of industry best practices, utilization of online reservation systems, and the implementation of effective marketing strategies. 

Objective of the IPO 

Here are a few quick reasons why Samhi Hotels Limited going public:  

1. Repaying, prepaying, or redeeming certain borrowings used by the company and its subsidiaries, including settling any accrued interest. 

2. Allocating funds for overarching corporate needs and objectives. 

Company Financials 

Pros 

1. The company follows a strategy that combines acquisitions and turnaround efforts. Through this approach, it has developed an asset ownership business model that allows it to achieve both scale and increased earnings by minimizing capital expenditures. 

2. The company's hotels are strategically situated in 12 cities in India, which are considered vital urban consumption hubs. The selection of these target cities is guided by overarching macro themes, including factors such as their proximity to airports and the growth of premium office spaces.  

3. The company gains a competitive advantage by collecting real-time operating data from its hotels across various parameters. This data is then meticulously analyzed to enhance performance, identify potential growth avenues, and closely monitor anticipated risks, ensuring proactive management of challenges and opportunities. 

Cons 

1. The company might need further equity or debt funding to support its expansion, and there's a possibility that such financing may not be accessible on favorable terms. 

2. The company has provided security interests in specific assets to secure its loans. Non-compliance with the terms of these loans could result in the enforced sale or confiscation of these assets.  

3. Out of the company's 25 operating hotels, 10 are situated in buildings leased from third parties. Failure to adhere to the lease terms, secure lease renewals, or establish new lease agreements could potentially have negative consequences on the company's business, financial performance, and overall financial health. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”