Any current/future new fundraising through debt or equity?

No immediate new fundraising through debt or equity is planned. Capital expenditures for growth projects (Navi Mumbai INR 650 crores over 4 years, Hyderabad over ~3.5 years) will be funded primarily through operating free cash flow and investable surplus (~INR 1,700 crores). Current leverage is around 3x net debt-to-EBITDA, with a target to reduce to ~2.5x in the medium term. Refinancing is underway for about INR 350 crores of debt, expected to reduce interest rates from 8.4% to 7.9%. Incremental property transfers to the GIC joint venture platform will depend on value creation, not to solve l

Any current/future capex/capital investment/strategic investment?

Total cumulative capex for SAMHI estimated at INR 1,500 crores, including INR 1,100 crores before Navi Mumbai and about INR 650 crores for Navi Mumbai Phase 1. Navi Mumbai Phase 1 development entails 400 rooms with capex of INR 650 crores over 3-4 years (~INR 1.65-1.7 crores per key), well below replacement cost in Mumbai. A 260-room mid-scale variable lease hotel in Hyderabad Financial District is being developed with minimal upfront capital, fitting the capital-efficient growth model. W Hyderabad (170-room luxury hotel in HITEC City) is on track for December 2026 opening, expected to b

Future growth expectations in sales/revenue/volumes?

SAMHI expects same-store total revenue growth of 9% to 11% CAGR over the next 3 to 5 years, driven largely by repricing. The upscale segment share is projected to increase to 60% of revenue from the current 4%, substantially impacting revenue growth. RevPAR (Revenue Per Available Room) is conservatively assumed to remain flat till 2030, but management anticipates a 5-6% annual growth, indicating potential upside. New inventory additions, such as ballroom renovations and hotel expansions, especially in Q4, are expected to be absorbed quickly due to strong demand. Long term structural growth is

Future growth expectations in earnings/operating earnings/profits/EPS?

Guidance assumes RevPAR remains flat from 2025 to 2030 but company expects 5-6% annual RevPAR growth, implying potential upside. (Page 24) Company targets 9%-11% CAGR total revenue growth for same-store hotels over 3-5 years, driven mainly by repricing and rate growth. (Page 11) With hotels due for rebranding and renovation, above-average revenue growth of 17%-18% CAGR expected for next 3-5 years for the company, even before Navi Mumbai project. (Page 11) EBITDA from Navi Mumbai asset guided at INR 180-185 crores, assuming current RevPAR level. (Page 24) EBITDA expected to grow exponentially p

Current/ Expected Orderbook/ Pending Orders?

The company expects to see a strong order book growth driven by new inventory and renovations in H2 FY26. Ballroom renovations and new inventory launches across multiple hotels (Sheraton Hyderabad, Hyatt Place Gurgaon, Kolkata, Greater Noida, Bangalore) will start contributing significantly from Q4 FY26. New inventory absorption is expected to be quick given strong demand, especially in the quarter 4 period. The Navi Mumbai development represents a major investment with a total capex of approximately INR 1,500 crores in phases. The Navi Mumbai asset alone is anticipated to generate EBITDA of a

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Samhi Hotels LtdQ3 FY25Leisure Services

Samhi Hotels Ltd Q3 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹175P/E: 21.0Market Cap: ₹3.3K CrSector: Leisure Services

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→SAMHI expects same-store total revenue growth of 9% to 11% CAGR over the next 3 to 5 years, driven largely by repricing.
→The upscale segment share is projected to increase to 60% of revenue from the current 4%, substantially impacting revenue growth.
→RevPAR (Revenue Per Available Room) is conservatively assumed to remain flat till 2030, but management anticipates a 5-6% annual growth, indicating potential upside.
→New inventory additions, such as ballroom renovations and hotel expansions, especially in Q4, are expected to be absorbed quickly due to strong demand.
→Long term structural growth is supported by urbanization, airport developments (Navi Mumbai airport with 100+ million passengers), and increasing disposable incomes.
→The company aims for a 17%-18% CAGR in top-line revenue over the next 3-5 years factoring hotel rebranding and renovations.
→Navi Mumbai’s large development (700-room project) is expected to redefine SAMHI’s growth over the next decade.

Margin guidance

Category 3

→Guidance assumes RevPAR remains flat from 2025 to 2030 but company expects 5-6% annual RevPAR growth, implying potential upside. (Page 24)
→Company targets 9%-11% CAGR total revenue growth for same-store hotels over 3-5 years, driven mainly by repricing and rate growth. (Page 11)
→With hotels due for rebranding and renovation, above-average revenue growth of 17%-18% CAGR expected for next 3-5 years for the company, even before Navi Mumbai project. (Page 11)
→EBITDA from Navi Mumbai asset guided at INR 180-185 crores, assuming current RevPAR level. (Page 24)
→EBITDA expected to grow exponentially post-FY27 as newly opened hotels stabilize. (Page 22)
→Profit after tax reported INR 100 crores in Q2 FY26, up from INR 13 crores previous year, reflecting momentum. (Page 5)
→Balance sheet strength and free cash flows support funding future growth without leverage concerns. (Pages 6, 22)

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Fundraise plans

Yes

→No immediate new fundraising through debt or equity is planned.
→Capital expenditures for growth projects (Navi Mumbai INR 650 crores over 4 years, Hyderabad over ~3.5 years) will be funded primarily through operating free cash flow and investable surplus (~INR 1,700 crores).
→Current leverage is around 3x net debt-to-EBITDA, with a target to reduce to ~2.5x in the medium term.
→Refinancing is underway for about INR 350 crores of debt, expected to reduce interest rates from 8.4% to 7.9%.
→Incremental property transfers to the GIC joint venture platform will depend on value creation, not to solve leverage issues.
→The company feels comfortable managing existing and upcoming projects without additional fundraising due to ample free cash generation.

Order book

→The company expects to see a strong order book growth driven by new inventory and renovations in H2 FY26.
→Ballroom renovations and new inventory launches across multiple hotels (Sheraton Hyderabad, Hyatt Place Gurgaon, Kolkata, Greater Noida, Bangalore) will start contributing significantly from Q4 FY26.
→New inventory absorption is expected to be quick given strong demand, especially in the quarter 4 period.
→The Navi Mumbai development represents a major investment with a total capex of approximately INR 1,500 crores in phases.
→The Navi Mumbai asset alone is anticipated to generate EBITDA of around INR 180-185 crores, assuming RevPAR remains flat from 2025 to 2030.
→The company has a pipeline largely consisting of variable leases which offer lower cost per key and strong growth opportunities.
→Overall, supply additions and renovations across markets indicate a robust pipeline for the coming years.

Capex plans

Yes

→Total cumulative capex for SAMHI estimated at INR 1,500 crores, including INR 1,100 crores before Navi Mumbai and about INR 650 crores for Navi Mumbai Phase 1.
→Navi Mumbai Phase 1 development entails 400 rooms with capex of INR 650 crores over 3-4 years (~INR 1.65-1.7 crores per key), well below replacement cost in Mumbai.
→A 260-room mid-scale variable lease hotel in Hyderabad Financial District is being developed with minimal upfront capital, fitting the capital-efficient growth model.
→W Hyderabad (170-room luxury hotel in HITEC City) is on track for December 2026 opening, expected to boost ARR and same-store growth.
→INR 75-80 crores extension premium and INR 100-150 crores FSI premium payable for Navi Mumbai land deal with MIDC.
→About INR 350 crores free cash on hand invested in Tribute Bangalore, W Hyderabad, and new hotel openings.
→Guidance to maintain net debt to EBITDA around 2.9-3x short term, moving to 2.5x midterm, leveraging investable surplus to fund capex without balance sheet stress.

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