Stock snaps two-day slide as investors cheer new operating agreements and Bengaluru growth push.
SAMHI Hotels shares climbed over 4% on Wednesday after the company announced fresh operating agreements with Marriott Hotels and secured approval to expand its Whitefield footprint in Bengaluru.
The stock rose as much as 4.3% to ₹169.2, marking its biggest intraday gain since February 9. It later pared gains to trade 4% higher at ₹168.6, outperforming the Nifty 50, which was up 0.77% as of 10:55 AM.
The rally snapped a two-day decline, with volumes running at 1.9 times the 30-day average, according to Bloomberg. Despite the bounce, the stock remains down 21.6% this year, compared with a 2% fall in the benchmark index’s 2% decline. Market capitalization stands at ₹3,730.64 crore.
Marriott Deal Strengthens Partnership
The catalyst: SAMHI expanded its partnership with Marriott International.
SAMHI’s wholly owned subsidiary, Duet India Hotels (Navi Mumbai) Pvt. Ltd., signed operating agreements with Marriott Hotels India and its affiliates for two hotel assets in Navi Mumbai, Thane.
The properties include:
- A 350-room upper upscale hotel under the Westin brand
- A 350-room upper mid-scale hotel under Fairfield by Marriott
This move strengthens SAMHI’s alignment with Marriott, expanding branded scale near Mumbai.
Branded inventory often brings stronger occupancy and pricing power, leveraging Marriott’s global reach.
Whitefield Expansion Gets Regulatory Nod
Separately, subsidiary ITHPL received layout approval from the Karnataka Industrial Area Development Board (KIADB) to develop a second hotel at the Whitefield Industrial Area in Bengaluru.
The proposed addition will bring:
- ~235 new rooms
- Expansion of the existing 142-room property
- Total inventory rising to ~377 rooms
The complex will span upper upscale and upscale segments, positioning SAMHI to capitalize on Whitefield’s growing tech and business travel demand.
Q3 Profit Surges, Revenue Flat
The company posted a sharp jump in December 2025 quarter profit.
Net profit rose 573% YoY to ₹1.75 crore from ₹0.26 crore.
Revenue was nearly flat at ₹35.79 crore versus ₹35.88 crore last year.
Higher margins drove profit despite flat sales.
Valuation and Risks
The stock has corrected 14% from recent highs and trades at discounted valuations of:
- 8x FY26 EV/Ebitda
- 7x FY27 EV/Ebitda
- 6x FY28 EV/Ebitda
According to Mirae Asset Sharekhan, improving cash flows and a deleveraging balance sheet could help narrow the valuation gap with peers. The brokerage maintains a ‘Positive’ stance.
Still, risks remain:
- Decline in room demand
- Delays in hotel launches
- Postponement in loan repayments
Execution is crucial in hospitality. Delayed openings hurt earnings forecasts.
Can SAMHI turn expansion into steady revenue growth?
TL;DR
SAMHI Hotels shares rose over 4% after signing new operating agreements with Marriott for two 350-room hotels in Navi Mumbai and securing approval to expand its Whitefield property in Bengaluru. Q3 profit jumped 573% YoY, though revenue was flat. The stock trades at discounted valuations despite recent corrections.
AI summary
- Stock up 4% on Marriott operating agreements.
- Two 350-room hotels planned in Navi Mumbai.
- Whitefield expansion adds ~235 rooms.
- Q3 net profit up 573% YoY
- Trades at 6–8x forward EV/Ebitda
