Samhi Hotels LtdQ1 FY24Leisure Services

Samhi Hotels Ltd

Q1 FY24 Earnings Call Analysis

Management growth scorecard

Revenue

Category 3

Margin

Category 1

Fundraise

N/A

Order

Yes

Capex

Yes

3 of 4 growth signals are positive.

Revenue guidance

Category 3

→SAMHI Hotels projects a topline of INR 1,000 crores and EBITDA of about INR 360 crores for FY25, indicating strong growth expectations.
→Portfolio delivered 17% YoY RevPAR growth, with Upper Upscale segment (43% of revenue) leading at 22% growth, especially in key markets like Bangalore, Hyderabad, Pune, and Gurgaon.
→Core markets including Bangalore and Hyderabad are expected to continue delivering mid-teen RevPAR growth over the next 2-3 years, driven by strong office space expansion and negligible supply pressure.
→ACIC portfolio integration expected to improve margins and add incremental EBITDA, with 300 new keys contributing additional EBITDA.
→Forward bookings from mid-June and July indicate positive momentum post recent election and heatwave disruptions.
→Overall revenue growth expected in high single-digit to low double-digit RevPAR increases, supported by operating leverage and margin improvements.
→Corporate G&A and ESOP expenses expected to reduce, contributing to profitability alongside revenue growth.

Category 1

→SAMHI Hotels expects strong operational performance and margin expansion in FY25.
→EBITDA margin projected to expand from 37.5% post-acquisition to approximately 41-42% in coming quarters.
→Corporate G&A expenses projected to reduce by about INR 15 crores from FY24 levels, improving profitability.
→ESOP expenses are expected to materially reduce in FY25, further boosting earnings.
→Organic revenue growth driven by sustained high single-digit to low double-digit RevPAR growth, supported by core markets.
→Incremental EBITDA of around INR 70 crores expected from new ACIC portfolio integration and 300 additional keys added in FY25.
→Positive PAT of INR 11 crores reported in Q4 FY24 with expectations for PAT growth through operating leverage and cost efficiencies.
→Free cash flow generation of INR 225-250 crores expected in FY25 post-interest, aiding debt reduction and financial flexibility.
→ROCE leading markets like Bangalore and Hyderabad are expected to continue delivering strong returns (~20%).

Get access to all 5 sections — revenue, margin, fundraise, orderbook, and capex — for Samhi Hotels Ltd and 1,400+ other companies.

→No specific mention of new fundraising through debt or equity in the provided pages.
→The company is focused on reducing debt, targeting a net debt to EBITDA ratio of about 3.5 times by the end of FY25.
→They are generating strong free cash flows (about INR 100 crores incremental free cash post-debt servicing in H2 FY24).
→With a cash balance of INR 260 crores and expected cash accumulation, the company plans to pare down debt, renovate hotels, and evaluate growth opportunities.
→Growth opportunities will adhere to cardinal rules: focus on core markets, avoid development risk, and maintain a discount to replacement costs.
→No explicit plans for fresh fundraising via equity or additional debt were disclosed during the call.

Yes

→SAMHI Hotels Limited is set to open about 300 new rooms in the next few months, including:
→ - 137 rooms in Greater Noida (currently under full renovation, reopening in October)
→ - 111 rooms in Kolkata (first hotel in the city)
→ - 54 rooms in Bangalore (Whitefield, Holiday Inn Express)
→These 302 rooms are expected to open by the quarter ending September to October.
→For FY25 and beyond, plans include:
→ - Addition of 22 apartments to Hyatt Regency Pune.
→ - Expansion of Hyatt Regency Chennai in Sriperumbudur by adding about 86 rooms.
→No definitive timelines are given yet for expansions in Sriperumbudur or additional projects.
→SAMHI is focusing on quick capex to revenue cycle projects and avoiding greenfield developments.
→Capital expenditure for these new openings is around INR 70 crores (30 crores spent, 40 crores to be spent next quarter).
→Further growth opportunities are under evaluation within core markets without development risk.

Yes

→About INR 70 crores total capital expenditure incurred for three upcoming hotels; INR 30 crores already spent, INR 40 crores to be spent in the next quarter (Page 9).
→Planning to renovate and rebrand two other large hotels to drive performance further (Page 5).
→Renovation and rebranding of Greater Noida Caspia Pro hotel in full shutdown mode since February, reopening planned in October (Page 10, 15).
→Addition of 300 new rooms including 137 in Greater Noida, 111 in Kolkata, 54 in Bangalore, expected to open by Q3 FY25 (Page 9).
→Planning to add 22 apartments to Hyatt Regency Pune and expand Chennai Sriperumbudur hotel by 86 rooms; timelines not detailed but mentioned as next year activities (Page 9).
→INR 25 crores capex planned over next two quarters for full integration of ACIC portfolio (Page 11).
→Focus on quick capex to revenue cycle expansion, no greenfield developments, sticking to core markets with low development risk (Page 9).

How does Samhi Hotels Ltd rank vs peers in Leisure Services?

Pro feature

1Samhi Hotels Ltd

Rev 3Mar 1

See full Leisure Services sector rankings

Want more stocks like Samhi Hotels Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.