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 HITEC City, Hyderabad, and recent acquisitions in Bengaluru Whitefield, increasing Hyderabad inventory by 21% and adding 525 upscale rooms in core markets, expected to drive significant revenue and EBITDA growth over the next 3-4 years.

• Integration of the ACIC portfolio and rebranding of several hotels completed, with 300 rooms under pre-opening and further room additions planned in existing assets.

• Portfolio expansion and internal growth projects are funded primarily through 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 INR 2,705 million, up 16.5% year-on-year; RevPAR grew 21.2% YoY to INR 4,529.

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

• Consolidated EBITDA (pre-ESOP) rose 37.6% YoY to INR 1,016 million; 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 million in Q2 FY24.

• PAT for the quarter was INR 12.6 crores, with stable depreciation (INR 29 crores) and finance cost (INR 56 crores).

Outlook and guidance

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

• Guidance for net debt to EBITDA at 4.5x post-Bangalore acquisition, aiming to reduce to 3.7-3.8x through capital recycling.

• No new large acquisitions planned; focus is on executing current pipeline and internal growth projects.

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