The cost of radio frequency (RF) chains is the biggest drawback of massive MIMO millimeter wave networks. By employing spatial modulation (SM), it is possible to implement lower number of RF chains than transmit antennas but still achieve high spectral efficiency. In this work, we propose a system model of the SM scheme together with hybrid beamforming at the transmitter and digital combining at the receiver. In the proposed model, spatially-modulated bits are mapped onto indices of antenna arrays. It is shown that the proposed model achieves approximately 5dB gain over classical multi-user SM scheme with only 8 transmit antennas at each antenna array. This gain can be improved further by increasing the number of transmit antennas at each array without increasing the number of RF chains.