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    Samhi Hotels

    SAMHIGood
    Consumer Services·29 Jan 2026
    Management Summary

    Samhi Hotels delivered a strong Q3 FY26, demonstrating resilience and pricing power despite external disruptions like airline operational challenges. The company reported robust revenue and underlying EBITDA growth, though reported margins were impacted by GST changes. Management expressed confidence in its growth pipeline, ability to fund capex through internal accruals, and achieving long-term revenue and EBITDA targets, driven by strong market demand and strategic shift towards upscale segments.

    Highlights

    8

    • Total income grew 16% Y-o-Y to INR 342 crores for the quarter.

    • Same-store RevPAR increased 13% Y-o-Y to INR 5,643.

    • Reported EBITDA grew 13.2% Y-o-Y to INR 126 crores, with underlying EBITDA up 19% Y-o-Y.

    • EBITDA margins were 36.9%, down from 37.9% last year due to GST changes.

    • PAT attributable to SAMHI shareholders was INR 39.6 crores.

    • Net debt stood at INR 1,450 crores as of December 31, 2025, with net debt-to-EBITDA stable at 3x.

    • Same-store ADR grew 15.9% Y-o-Y, while occupancy was stable at 73% (down 1.6 percentage points).

    • Targeted revenue of circa INR 3,000 crores by 2030, with upscale/upper upscale contribution rising to 60%.

    Key financials

    Single quarter

    11 metrics
    1. 01Total Income₹342 Cr+16.2%YoY
    2. 02Consolidated EBITDA₹126 Cr+13.2%YoY
    3. 03EBITDA Margin36.9%
    4. 04Finance Cost₹40 Cr
    5. 05PAT (Shareholders)₹39.6 Cr

    Guidance & targets

    7
    CategoryTargetPriority
    Revenue
    Total Revenue
    circa INR 3,000 crores
    		High
    Revenue
    Same-Store Revenue CAGR
    9% and 11%
    		Medium
    RevPAR
    Same-Store RevPAR CAGR
    7% to 11%
    		Medium
    Debt
    Debt Reduction
    INR 300 crores
    		High
    Revenue Mix
    Upscale/Upper Upscale Contribution
    60%
    		High
    EBITDA
    Total EBITDA Accumulation
    INR 3,000 crores, INR 3,500 crores
    		Medium
    Cash Flow
    Free Cash Flow
    INR 350 crores, circa INR 400 crores plus
    		Medium

    Risks & concerns

    3
    RiskSeverity

    Short-term impact of GST regulation changes on EBITDA margins.

    GST changes led to a 150-200 basis point impact on margins in the short term, primarily affecting the mid-scale portfolio, but expected to be offset by increased sales volumes and absorbed in 1-2 quarters. — Management acknowledged

    medium

    External disruptions, such as airline operational challenges, impacting demand.

    The largest Indian airline facing operational challenges during December led to a '3-week wipe out' for the company, particularly affecting the upscale segment due to MICE cancellations. — Management acknowledged

    medium

    Demand sensitivity to various event risks (e.g., monsoons, specific events).

    Management acknowledges the need to account for 'unknown events' and 'event risk' in demand forecasting, but expresses confidence in the portfolio's resilience and ability to manage such risks. — Management acknowledged

    low

    Q&A highlights

    3

    “So, first of all, the pass-through is already happening. And if you see for the quarter when same-store grew at about 14%, and let me tell you, if we were to do an impact of the airline crisis in December, it was pretty, pretty substantial.”

    Clarifies how the company is managing the GST impact on profitability and confirms that cost pass-through is underway, mitigating long-term concerns.

    asked by Jinesh Joshi

    2 min read6 chapters

    Detailed Narrative

    01

    Q3 FY26 Performance Highlights

    Samhi Hotels reported a robust Q3 FY26, with total income growing 16% year-on-year to INR 342 crores. Same-store RevPAR increased by 13% year-on-year to INR 5,643, driven by a 15.9% year-on-year ADR growth, despite a slight 1.6 percentage point drop in occupancy to 73%. Consolidated EBITDA rose 13.2% year-on-year to INR 126 crores, with underlying EBITDA growth at a stronger 19% year-on-year. PAT attributable to SAMHI shareholders stood at INR 39.6 crores for the quarter.

    02

    GST Impact and Margin Management

    The company's EBITDA margins moderated to 36.9% from 37.9% in the prior year, primarily due to changes in GST regulations. Management indicated a short-term impact of 150-200 basis points on margins, particularly affecting the mid-scale portfolio. However, they anticipate that the GST reduction will make hotels more affordable, leading to greater sales volumes and offsetting the impact in the long term. A recovery in margins is expected from February onwards, driven by strong revenue growth.

    03

    Strategic Growth Initiatives and Pipeline

    Samhi Hotels currently operates 4,900 rooms and has an additional 1,900 rooms under development or rebranding, resulting in 1,450 net room additions. Key projects, including the 170-room W Hyderabad and the 220-room Westin block in Whitefield Bangalore, are progressing as planned. These developments are strategically aimed at shifting the revenue mix towards upscale and upper upscale segments, increasing their contribution from the current 42% to 60% upon completion, thereby enhancing long-term earnings quality.

    04

    Debt and Cash Flow Position

    As of December 31, 2025, Samhi Hotels' net debt was INR 1,450 crores, maintaining a stable net debt-to-EBITDA ratio of 3x. The minor increase in net debt during the quarter was attributed to extension payments for the Navi Mumbai project. Management reaffirmed its commitment to the earlier guided INR 300 crores in debt reduction by 2030. The company's trailing 12-month free cash flow of INR 300 crores is projected to increase to INR 350-400 crores plus in the next 12 months, supported by earnings growth and stable interest costs.

    05

    Market Demand and Pricing Power

    Management highlighted strong underlying market demand, fueled by India's economic growth and robust office absorption across core markets. They emphasized the company's significant pricing power, with hotels able to dynamically reprice rooms multiple times a day, especially during periods of high demand. This dynamic pricing strategy has allowed for strong revenue growth even in the mid-scale segment, demonstrating reduced dependence on fixed RFP prices and effective yield management.

    06

    Long-Term Outlook and Targets

    Samhi Hotels is confident in achieving its long-term target of circa INR 3,000 crores in revenue by 2030. This growth is expected to be driven by a 9-11% CAGR in same-store revenue and incremental contributions from new upscale and upper upscale inventory. The company also projects total EBITDA accumulation of INR 3,000-3,500 crores over the next 4-5 years. Growth capex for new projects is primarily funded through internal accruals and capital-efficient variable leases, minimizing pressure on the balance sheet.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.