SAMHI - Samhi Hotels

📊 NSE: SAMHI 🏢 Hotels 📅 Last Updated: 12/14/2025 12:43

💰 Financial Performance

Revenue Growth by Segment

Total income for Q2 FY26 was INR 296 Cr, up 11% YoY. Same-store RevPAR grew 11.2% YoY to INR 5,026. Revenue share by segment in FY25 was Upper Upscale & Upscale (43%), Upper Mid-scale (42%), and Mid-scale (15%).

Geographic Revenue Split

Core markets include Bangalore, Hyderabad, NCR, Pune, and Chennai. Tier 1 markets achieve a 13% ROCE, significantly outperforming Tier 2 markets such as Ahmedabad, Vizag, and Nasik, which yield 6%.

Profitability Margins

Portfolio operating EBITDA margin stands at 39% (pre-ESOP). Key cost components include Payroll (16%), Variable Costs (19%), and Utilities (6%).

EBITDA Margin

39% (pre-ESOP) for the portfolio, reflecting strong operating leverage from cluster management of Fairfield and Holiday Inn portfolios.

Capital Expenditure

INR 149 Cr allocated for the Westin-Tribute dual-branded hotel in Whitefield, Bengaluru. The company is executing a pipeline of 1,500+ new rooms to reach a total of 6,300+ rooms.

Credit Rating & Borrowing

[ICRA]A (Long-term) and [ICRA]A2+ (Short-term), upgraded following deleveraging from GIC's INR 580 Cr debt reduction infusion.

⚙️ Operational Drivers

Raw Materials

Food & Beverage (F&B) supplies (25% of total income) and Utilities (6% of total costs) are the primary operational inputs.

Import Sources

Sourcing is primarily domestic to support the 79% domestic traveler volume and local hotel operations across Indian business districts.

Capacity Expansion

Current inventory of 4,850 rooms (as of Sep '25), with a planned expansion to 6,300+ rooms through a pipeline of 1,500+ rooms and stabilization of 790 rooms.

Raw Material Costs

F&B costs represent a significant portion of the 25% F&B income share. Procurement strategies focus on cluster management to achieve economies of scale.

Manufacturing Efficiency

RevPAR growth of 11.2% YoY to INR 5,026 indicates high efficiency in room inventory monetization and pricing strategy.

Logistics & Distribution

Online Travel Agent (OTA) commissions represent 16% of business; 84% direct business strategy (Brand.com, GDS, Groups) is used to protect margins.

📈 Strategic Growth

Expected Growth Rate

9-11%

Growth Strategy

SAMHI plans to achieve growth by expanding room inventory from 4,850 to 6,300+, entering the Mumbai market with a landmark dual-branded hotel, and increasing the revenue share of high-margin Upscale assets from 42% to 60%.

Products & Services

Branded hotel rooms (Upscale to Mid-scale), Food & Beverage (F&B) services, and banquet/meeting facilities.

Brand Portfolio

Marriott, Westin, Tribute Portfolio, Fairfield by Marriott, Holiday Inn, Holiday Inn Express, Hyatt, Caspia, and Trinity.

New Products/Services

Entry into Mumbai with a dual-branded hotel and the launch of W Hyderabad and Westin Tribute Bangalore Whitefield, contributing to an incremental INR 800 Cr revenue potential.

Market Expansion

Entry into Mumbai and expansion in Hyderabad and Bangalore, targeting India's most dynamic office markets.

Market Share & Ranking

Leading branded hotel ownership and asset management platform in India with 4,850+ rooms.

Strategic Alliances

Strategic partnership with GIC, which committed INR 750 Cr for a 35% stake in three subsidiaries to fund deleveraging and capex.

🌍 External Factors

Industry Trends

The industry is seeing a 9-11% CAGR growth driven by urbanization. SAMHI is positioning for this by expanding into high-growth office markets like Navi Mumbai and Hyderabad.

Competitive Landscape

Competes with branded hotel chains in the Midscale to Upscale segments, leveraging international brands like Marriott and IHG for distribution.

Competitive Moat

SAMHI's moat lies in its capital-efficient leasehold model (18% ROCE vs 11% freehold) and institutional partnerships with GIC and Equity International, providing durable cost and governance advantages.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth and urbanization trends, which drive business travel and discretionary spending.

Consumer Behavior

Shift toward branded hotels and increased business travel in core office markets following the growth of the Indian economy.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with pollution norms and hospitality standards; implementation of a Related Party Transactions Policy and Code of Conduct for Board and Senior Management.