SAMHI Hotels (SAMHI) Q2 24/25 earnings summary

Executive summary

• Announced and signed a long-term variable lease for a 170–175 room upper-upscale hotel in Hyderabad's HITEC City, expanding the portfolio to over 5,600 rooms and increasing Hyderabad inventory by 21%.

• Three new upscale/upper-upscale projects in Bengaluru and Hyderabad, totaling 525 rooms, are in various stages of development and expected to drive strong revenue and EBITDA growth over the next 3-4 years.

• Portfolio expansion and acquisitions in Bangalore and Hyderabad are funded from internal accruals, aiming for improved leverage and capital efficiency.

• Unaudited standalone and consolidated financial results for the quarter and six months ended 30 September 2024 were approved and reviewed, with an unmodified review opinion from statutory auditors.

• The company operates as a single segment focused on developing and running hotels, with performance evaluated at the group level.

Financial highlights

• Q2 FY25 total income reached ₹2,705mn, up 16.5% year-on-year; RevPAR grew 21.2% YoY to ₹4,529.

• Asset income for Q2 FY25 was INR 266 crores, up 20% year-on-year, driven by same-store growth and the ACIC portfolio addition.

• Consolidated EBITDA (pre-ESOP) rose 37.6% YoY to ₹1,016mn; asset EBITDA margin improved to 39.1% from 36.7% YoY.

• Consolidated net profit for Q2 FY25 was INR 126.15 million, compared to a net loss of INR 880.00 million in Q2 FY24.

• Basic and diluted EPS (consolidated) for Q2 FY25 were INR 0.57 and INR 0.56, respectively.

Outlook and guidance

• Near-term growth expected from healthy demand, portfolio re-rating post-renovation, and new inventory additions.

• Management expects continued positive operating cash flows and compliance with financial covenants, supported by improved financial position post-ACIC Portfolio acquisition and IPO proceeds.

• Guidance for net debt to EBITDA at 4.5x by FY25, with a target to reduce to 3.7-3.8x through capital recycling and internal accruals.

• No new large acquisitions planned; focus is on executing current pipeline and capital-efficient growth via variable leases.

• Growth in key office markets (Bangalore, Hyderabad) to drive higher revenue per room and capital-efficient returns.