Samhi Hotels to acquire 70% stake in RARE India for ~₹470mn
Samhi Hotels will acquire a 70% stake in RARE India for approximately ₹470 million (~₹3,290 crore), with a pre-money valuation of ₹490 million (~₹3,430 crore). The first tranche of acquisition is expected by May 31, 2026. RARE India will become Marriott's exclusive leisure platform in the region.
The acquisition of a majority stake in RARE India and its subsequent affiliation with Marriott represent a significant strategic move for Samhi Hotels, potentially transforming its business model and market presence in the leisure hospitality sector.
The announcement details a strategic acquisition that expands Samhi Hotels' presence into the leisure segment through an asset-light model, with a significant affiliation with Marriott, indicating positive future growth prospects.
Samhi Hotels Limited announced a strategic investment to acquire a 70% stake in RARE India, a leisure platform with over 60 experience-led hotels and 990 rooms across India, Bhutan, and Nepal. The acquisition, valued at a pre-money business valuation of ₹490 million (approximately ₹3,430 crore), will involve a cumulative investment of approximately ₹470 million (approximately ₹3,290 crore) over the next 12 months through a combination of primary and secondary transactions.
This investment follows Samhi's strategy of identifying undervalued assets and collaborating with global brands. Following the investment, RARE India will be appointed as Marriott's exclusive portfolio platform for the "Outdoor Collection by Marriott Bonvoy" in India, Nepal, Sri Lanka, and Bhutan. This affiliation is expected to enhance RARE India's reach through Marriott's distribution network, listed on Marriott.com.
The first tranche, involving the acquisition of a 55% stake, is scheduled for execution by May 31, 2026. The second tranche will be completed within 12 months of the first tranche's execution. RARE India, founded in 2003, is known for its curated collection of experience-led hotels and a strong commitment to responsible tourism. The transaction is expected to be transformational, allowing Samhi to enter the leisure segment through an asset-light model and scale RARE India into a B2C brand.
The company anticipates that RARE India's revenue potential could reach ₹900-1,000 crore in the medium term, with operating margins projected to increase from 25-30% to 35-40% post-transition. Key risks identified include the transition of properties to the Marriott platform and the pace of portfolio growth due to RARE's careful selection criteria. The transaction is subject to the execution of definitive agreements.
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Samhi Hotels Limited filed this with the NSE as a statutory disclosure, categorised under acquisition. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Samhi Hotels Limited. Read the original for the full detail.