India’s Samhi Hotels, the operator of renowned hotel brands like Marriott, Hyatt, and IHG, witnessed a surge of 7.9% in its value during the initial trading on Friday. This leap positioned the company’s worth at an impressive 29.63 billion rupees. The company’s shares, which initiated at 134.5 rupees, ascended to a peak of 135.9 rupees, consistently staying above the original initial public offer (IPO) price of 126 rupees.
The IPO of Samhi Hotels received an overwhelming response, with the company amassing bids worth a colossal 41.96 billion rupees. This resulted in the company’s IPO getting oversubscribed by a significant fivefold earlier in the week. This remarkable response is a testament to the company’s financial performance, as it reported a more than twofold increase in its operational revenue to 7.39 billion rupees for the financial year ending March 31. This revenue surge aided in narrowing its net loss to 3.39 billion rupees from the previous 4.43 billion rupees.
Marriott, one of the top names in the global hospitality industry, contributed to more than 60% of Samhi’s revenue in the last financial year. The other two contributors, Hyatt and InterContinental Hotels Group (IHG), each added slightly above 18% to the company’s revenue. Established in 2010, Gurugram-based Samhi Hotels has a strong footprint in India with 31 operational hotels spread across 14 cities.
The debut of Samhi Hotels on the stock market is the first instance for a hotel operator since the listing of Lemon Tree Hotels in April 2018. Lemon Tree Hotels has experienced notable growth, with its shares escalating over 30% this year and an impressive 57.7% since its listing. The robust performance of Samhi Hotels and its peers reflects a positive sentiment for the Indian hospitality sector on the stock market.