New Era for Heritage Travel: Hotel Company Plans 70% Stake Acquisition in RARE India

Shares of SAMHI Hotels Ltd were in focus after the company announced a strategic investment in the hospitality sector. The company has approved a majority investment in RARE India, marking its entry into the experiential leisure hospitality segment.

The investment is part of the company’s plan to expand beyond its existing business hotel portfolio and participate in the growing demand for heritage and experiential travel stays.

Here are some key details about the announcement,

SAMHI Hotels to acquire majority stake in RARE India

SAMHI Hotels Ltd has announced that its board has approved the acquisition of a 70 per cent stake in a platform called RARE India, which focuses on heritage hotels, retreats, wildlife lodges, and experiential stays. The company expects to enter into definitive agreements with respect to this acquisition by May 2026, upon completion of necessary formalities.

The company’s total investment for the transaction is expected to be around Rs 470 million (approximately Rs 47 crore). The amount will include a primary capital infusion into RARE India, along with a small portion used to purchase shares from existing shareholders.

MoU signed with Marriott International

Along with the proposed investment, SAMHI Hotels and RARE India have entered into a Memorandum of Understanding (MoU) with Marriott International to explore an affiliation for the experiential hospitality platform. The collaboration aims to utilise Marriott’s global distribution network and loyalty ecosystem to expand the reach of RARE’s portfolio of hotels.

Under the proposed arrangement, RARE would receive exclusive rights to operate its portfolio of hotels under the outdoor collection brand by Marriott Bonvoy across India, Nepal, Bhutan and Sri Lanka. This would allow the properties to be distributed through Marriott’s worldwide booking channels and loyalty programme.

About RARE India

RARE India, founded in 2003 by Shobha Rudra, operates a curated hospitality platform that connects travellers with unique properties such as heritage palaces, boutique hotels and nature retreats. The platform currently includes 67 hotels with around 990 rooms across more than 15 states in India, along with a presence in Nepal and Bhutan.

RARE India will continue to be operated independently by its Founder and team, who remain committed to curating and nurturing its distinctive community of heritage and experiential property owners.

How the investment will be used

SAMHI Hotels stated that the primary capital infusion from the proposed investment will be used to support the next phase of growth for RARE India. The funds are expected to be utilised for strengthening management capabilities, upgrading technology platforms, and expanding marketing and distribution initiatives.

Through these investments, the platform plans to enhance its technology and distribution systems while expanding brand visibility and supporting the growth of its curated network of hospitality properties.

SAMHI’s existing hotel portfolio

SAMHI Hotels Ltd. operates as a branded hotel ownership and asset management platform in India with partnerships with global hotel operators such as Marriott, IHG and Hyatt. The company focuses on owning and developing hotels in key business and gateway cities across the country.

Currently, the company has a portfolio of 31 operating hotels with around 4,904 rooms across 13 cities in India, including the National Capital Region (NCR), Bengaluru, Hyderabad, Chennai and Pune.

Market capitalisation is around Rs 3,424 crore. The stock has a 52-week high of Rs 254 and a 52-week low of Rs 121. Over the past five years, the company has reported profit growth at a CAGR of around 20.2 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.