Samhi Hotels Results: Latest Quarterly Results & Analysis

Hotels company Samhi Hotels announced Q1FY25 results:

• RevPAR at Rs 4,276 up 13.0% on a YoY basis demonstrate strong business demand across key markets
• Asset Income and Asset EBITDA grew YoY by 31.2% and 31.7% respectively. Same store growth & positive impact of ACIC acquisition led to strong growth in income and EBITDA
• Consolidated EBITDA (pre-ESOP & one-time expenses) at Rs 934 million, up 43.7% YoY. The significant growth underscores the strength and potential of the current portfolio.
• PAT at Rs 42 million 

Commenting on the performance, Ashish Jakhanwala, Chairman & Managing Director, SAMHI Hotels Ltd. said, “We achieved total revenue of Rs 2,568 million and consolidated EBITDA! of Rs 934 million. During the quarter, RevPAR grew by 13.0% YoY, demonstrating that our core markets & demand drivers continue to grow strong.
The integration of ACIC is proceeding well and has resulted in ~520 bps margin improvement in Q1FY25 vis-G-vis HI1FY24 (pre-acquisition). We have also started rebranding of two of the ACIC hotels and this will help us materially increase its contribution to SAMHI.

We have good liquidity position and have strong free cash flows from operations in FY25, providing resources to fuel both internal and external growth opportunities.

With continued growth in our existing portfolio, the opening of new hotels, renovation, rebranding of ACIC assets, and a robust pipeline in key markets, our growth prospects remain strong in the coming quarters.”

Hotels company Samhi Hotels announced Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

• RevPAR up 16.9% YoY at Rs 4,830 
• Asset Income up 35.4% YoY
• Asset EBITDA up 45.4% YoY
• PAT Rs 113 million
• Positive Free Cash flow
• Consolidated EBITDA: Rs 1,077 million

FY24 Financial Highlights:

• RevPAR up 17.0% YoY
• Asset Income up 28.4% YoY
• Asset EBITDA up 34.6% YoY

Commenting on the performance, Ashish Jakhanwala, Chairman & Managing Director, SAMHI Hotels Ltd. said, We achieved a total revenue of Rs 2,899 million and EBITDA* of Rs 1,077 million during the quarter and have turned PAT positive. This was supported by a strong operational performance of our hotels which continue to benefit from significant growth of India’s commercial office and aviation market.

For FY24 we achieved a total revenue of Rs 9,787 million and EBITDA* of Rs 3,484 million. If we include ACIC for the unconsolidated period, the same will be Rs 10,527 million and Rs 3,681 million respectively.

Reduction in debt and finance cost allows SAMHI to be well-positioned to generate significant free cash flow from operations in FY25, providing resources to fuel both internal and external growth opportunities.

Looking ahead to FY25, SAMHI is poised for robust growth. This trajectory will be propelled by a multitude of factors including continued RevPAR growth in our same-store hotels due to their favorable locations & positioning, completion of the ACIC Portfolio integration, strategic renovation, and rebranding initiatives. Growth in EBITDA, reduction in ESOP expenses and corporate G&A sets us for a strong PAT growth in FY25 and beyond.

Samhi Hotels announced Q1FY24 results:

1. Financial Performance:
- SAMHI Hotels Ltd. reported a 14.2% growth in Asset Income and a 12.5% growth in Asset EBITDA for the quarter ended June 30, 2023.
- The company saw a significant reduction in debt and finance costs, with net debt decreasing from 28,339mn to 18,331mn.
- The cost of debt is expected to decrease by approximately 57% in the second half of FY24, resulting in healthy internal accruals.

2. Operational Highlights:
- SAMHI Hotels reported a YoY growth of 14.2% in RevPAR (revenue per available room), driven by improved average room rates and occupancy levels consistently above 70%.
- The demand environment remains strong with little new supply in core markets, and the company is optimistic about the upcoming strong season.
- In August 2023, SAMHI Hotels completed the acquisition of the ACIC Portfolio, which includes 962 rooms and land for development in Navi Mumbai.

3. Strategic Priorities:
- SAMHI Hotels' key priorities include strong growth through leveraging the strength of its assets and integrating the ACIC Portfolio.
- The company aims to improve the market share of specifically identified hotels within its portfolio through renovation, rebranding, and expansion.
- Reduction in finance costs, debt repayment, and overall cost optimization are also key priorities.

Ashish Jakhanwala, Chairman, Managing Director, and CEO of SAMHI Hotels, said, "We are proud to create a formidable hotel company in India within a period of 12 years. Our Q1FY24 performance is a testament to our strong growth, with RevPAR increasing by 14.2% YoY and average room rates improving by 17.7% YoY. We remain confident in the opportunities in the hotel industry in India and our capabilities to leverage them to our advantage."