SAMHI Hotels Acquires 70% Stake in RARE India for Rs 47.39 Crore in Strategic Hospitality Move

SAMHI Hotels Limited announced its Board of Directors has approved a significant investment to acquire 70% partnership interest and equivalent profit share in RARE India, a New Delhi-based partnership firm specializing in conscious luxury travel aggregation.

The transaction, valued at INR 473.9 million, comprises a primary capital contribution of INR 233.9 million and acquisition of existing partnership interests worth INR 240.0 million, structured in two successive tranches. Tranche 1 includes INR 168.9 million primary contribution and INR 144.0 million secondary acquisition for 55% stake, while Tranche 2 adds INR 65.0 million primary and INR 96.0 million secondary to reach 70% control.

Strategic Entry into Experiential Hospitality

RARE India operates as an aggregator platform for over 60 conscious-living hotels including palaces, forts, and lodges, accessible via www.rareindia.com. The firm develops marketing strategies, social media campaigns, PR plans, themed travel programs (wildlife, culture, art, spirituality, cuisine, sustainability), and listings with tour operators for domestic and international directories. Financials show steady growth: FY 2024-25 total income INR 3,30,16,898; FY 2023-24 INR 2,58,42,214; FY 2022-23 INR 2,46,98,173.

This asset-light acquisition aligns with SAMHI's strategy of acquisition and turnaround-led growth, marking entry into experiential leisure hospitality outside its core business operations. The transaction is not a related party deal, with no promoter/promoter group interests involved, and requires no governmental approvals.

Marriott Affiliation and Timeline

The Board also approved engaging Marriott International for potential affiliation of RARE's portfolio with Marriott's global distribution system. Tranche 1 closure is targeted on or before May 31, 2026, subject to conditions precedent, with Tranche 2 within 12 months thereafter.

Commenting on the development, Ashish Jakhanwala, Chairman & Managing Director, SAMHI Hotels Ltd., said: "This investment in RARE India is a strategic adjacency that strengthens our platform without distracting from our core focus on business and gateway markets. RARE represents a combination of legacy, credibility and scalable asset-light potential. With a strong proven founding team, an irreplaceable community of owners and the proposed affiliation with Marriott, we believe RARE can emerge as a leading B2C brand in experience-led tourism. Importantly, this is a small financial investment but with asymmetrical return potential - consistent with our philosophy of discovering value in underappreciated opportunities."

Ms. Shobha Rudra, Founder, RARE India, added: "RARE India has always been built on relationships, trust and a shared commitment to responsible tourism. This partnership with SAMHI allows us to remain true to our philosophy and continue to preserve and build the RARE community of hotel owners and discerning travellers. Together, we aim to strengthen the foundation of the RARE community and scale our impact."

Rajeev Menon, President, Asia Pacific excluding China, Marriott International added: "India's experiential and heritage-led hospitality segment represents a significant long-term opportunity. RARE has built a distinctive portfolio rooted in authenticity and responsible tourism. Through this collaboration, we look forward to extending our global distribution platform and Marriott Bonvoy ecosystem to a highly curated collection of unique stays. Together with SAMHI and RARE, we aim to unlock incremental demand and broaden access to immersive travel experiences across India and the region."

Shares of Samhi Hotels Limited was last trading in BSE at Rs. 148.90 as compared to the previous close of Rs. 151.50. The total number of shares traded during the day was 79749 in over 1710 trades.

The stock hit an intraday high of Rs. 157.75 and intraday low of 145.40. The net turnover during the day was Rs. 11897409.00.

Source : Equity Bulls

Keywords

SamhiHotels INE08U801020 StakeAcquisition RAREIndia LuxuryTravelAggregator