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Samhi Hotels Swings to Profit, Plans Aggressive Expansion with Global Brand Partnerships

Samhi Hotels posts 17% revenue growth and turns profitable with strong brand partnerships and a robust expansion pipeline. Here’s a detailed look at its business model, financial turnaround, and growth plans.

Samhi Hotels: Turning Profits and Building a Stronger Hospitality Portfolio


A Multi-Branded Hotel Ownership Leader

Samhi Hotels Limited (SAMHI) is one of India’s leading institutional multi-branded hotel ownership companies, focusing on acquiring established hotel brands and scaling them across key markets.

With 32 hotels and a total of 4,948 rooms across 10 brands in 14 cities, SAMHI operates in the upper-scale, upper mid-scale, and mid-scale segments, offering a wide choice for business and leisure travellers.


Global Hospitality Brand Tie-Ups

SAMHI’s portfolio is strengthened through partnerships with some of the biggest names in the global hotel industry:

  • Marriott International: Courtyard, Fairfield, Sheraton, Renaissance
  • Hyatt Hotels Corporation: Hyatt Place, Hyatt Regency
  • InterContinental Hotels Group (IHG): Holiday Inn Express

These alliances not only enhance customer loyalty but also drive higher occupancy rates and consistent service standards across properties.


Changing Shareholding Dynamics

As per the Q1 FY26 data:

  • Foreign Institutional Investors (FIIs): 47.5% (down from 51.9% in Q4 FY25)
  • Domestic Institutional Investors (DIIs): 15.1% (up from previous quarter)
  • Public Shareholders: 37.5% (up from 33–34% range earlier)

The decline in foreign ownership has been offset by increased domestic and retail participation, indicating stronger local investor confidence.


Financial Performance: From Loss to Profit

In the latest financial update, SAMHI delivered a remarkable turnaround:

  • Revenue: ₹11.5 billion (+17% YoY)
  • Net Profit: ₹860 million (vs. a loss of ₹2.3 billion last year)
  • Net Debt to EBITDA: Improved from 4.4x in FY24 to 3.2x

Revenue Mix

  • Rooms: 72%
  • Food & Beverages: 25%
  • Other Services: 3%

Improved operating leverage, better demand recovery in the hospitality sector, and strategic cost management were key drivers of this turnaround.


Long-Term Growth Outlook

SAMHI expects early double-digit revenue growth over the long term. Management projects EBITDA expansion of approximately ₹600 million driven by scale benefits and higher occupancy levels.

The company also targets generating ₹3.6 billion in free cash flow in FY26, which will be used to strengthen its balance sheet and reduce debt.


Upcoming Expansion Projects

Short-Term Additions (FY26)

  • Sheraton Hyderabad: Adding 54 rooms
  • Hyatt Regency Pune: Adding 22 rooms

Both properties are set to start contributing to revenue from FY26.

Major New Launches

  • Westin & Tribute Dual-Branded Hotel (362 rooms): Operational from FY26 onwards
  • Marriott’s W Hotel (170 rooms): Scheduled to open in the second half of FY27

These developments are expected to significantly boost SAMHI’s revenue base and strengthen its presence in premium segments.


Strategic Partnership with GIC

In a significant move, SAMHI has partnered with GIC, Singapore’s sovereign wealth fund, to pursue new growth opportunities and accelerate debt reduction. This partnership provides both capital strength and operational flexibility for long-term expansion.


Investor Outlook

With a diversified portfolio, strong global brand alliances, and a well-defined growth strategy, Samhi Hotels is well-positioned to benefit from the rising demand in India’s hospitality sector.

If the company sustains its profitability and executes its upcoming projects effectively, it could deliver consistent value for shareholders in the years ahead.


Key Highlights

  • 32 hotels, 4,948 rooms across 14 Indian cities
  • Partnerships with Marriott, Hyatt, and IHG
  • 17% YoY revenue growth; ₹860 million net profit
  • Net debt to EBITDA improved to 3.2x
  • Free cash flow target of ₹3.6 billion in FY26
  • Major property launches lined up for FY26 and FY27

            (Disclaimer: This article is for informational and educational purposes only. It does not constitute financial                               advice or a recommendation to buy or sell any securities. Please consult with a qualified                                        financial advisor before making any investment decisions.)

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