Samhi Hotels Ltd

- SAMHI Hotels Limited is adequately funded for current and planned investments, including ongoing and future cash flows. - No new acquisitions are currently envisaged; growth is driven through same-store revenue growth and existing growth initiatives. - The company is comfortable with its balance sheet, maintaining a net debt-to-EBITDA ratio around 3x. - Incremental investments, such as the INR 150 crores pending from GIC over the next 2 to 2.5 years, will further support cash flow. - Variable leases are primarily used for growth, requiring limited upfront capital and mitigating pressure on the balance sheet. - Management indicates no immediate need for new debt or equity fundraising, focusing on internal accruals and limited asset recycling. - Capex cycles for large projects will bulk up starting FY 28-29, which will be managed through existing funding and operational cash flow.

- Significant committed capex is focused on large projects like Westin Bangalore and Navi Mumbai, with bulk of capex expected to ramp up from FY '28/'29. - Investment pending from GIC of INR 150 crores over the next 2 to 2.5 years will add to free cash flow. - Pipeline discussions mainly involve variable leases, which require investment primarily in fit-outs rather than full asset acquisition, minimizing balance sheet pressure. - Variable leases allow growth without significant upfront capital, with partners investing majority of capital before fit-outs. - Limited asset recycling opportunities considered for some capital generation. - No new acquisitions are envisaged in revenue targets, growth is mainly organic with 9-11% same-store revenue CAGR. - Overall, capital strategy is balanced to maintain debt levels while funding growth and optimizing cash flow.

- Targeting revenue of INR 3,000 crores by FY 2030, approximately 2.4x the current run rate (Page 18-19). - Same-store revenue is expected to grow at a compound annual growth rate (CAGR) of 9%-11% (Page 19). - Incremental revenues will come from growth initiatives already invested in, without relying on new acquisitions (Page 19). - Operating leverage and stable interest costs imply free cash flow growth will outpace revenue growth (Page 19). - Strong net office absorption in core markets, e.g., Bangalore at 12 million sq. ft. over 9 months, supports confidence in growth trajectory (Page 20). - Addition of new assets like Westin Hyderabad and Westin Bangalore aids maintaining growth momentum (Page 19).

- SAMHI Hotels targets INR 3,000 crores revenue by FY '30, about 2.4x current run rate. - Same-store revenue expected to grow at 9%-11% CAGR over the next 3-5 years. - EBITDA growth outpaces revenue growth due to operating leverage; recent EBITDA growth (before GST) at 19%. - Free cash flow stood at INR 300 crores TTM, expected to grow more than revenue due to stable interest costs and leverage. - Total EBITDA accumulation projected at INR 3,000-3,500 crores in next 4-5 years. - Growth driven by upscale, upper-upscale segment and additions such as Westin Bangalore and Westin Hyderabad. - No reliance on new acquisitions; growth led by current assets and pipeline mainly structured as variable leases. - RevPAR (Revenue per available room) expected to sustain high single-digit to low double-digit growth (7%-11%).

- SAMHI Hotels Limited has a significant pipeline of expansion with around 1,900+ rooms expected to come up by FY '30 (Page 17). - The company continues to have an actionable pipeline of available leases, which primarily involve variable leases, reducing the need for upfront capital investment (Page 17). - No definitive agreements or decisions on asset recycling yet, though some opportunities remain, with a timeline of 12 to 18 months for execution (Page 16). - Large committed capex mainly involves Westin Bangalore and Navi Mumbai projects, with major capex bulk starting FY '28-'29 (Page 18). - Incremental INR 150 crores investment pending from GIC over the next 2 to 2.5 years, adding to free cash flow to support growth and orders (Page 18).