### **Overview** Samhi Hotels Ltd. is one of India’s largest and fastest-growing branded hotel ownership and asset management platforms, built on an acquisition- and turnaround-led strategy. As of November 2025, the company owns and operates **31 hotels with 4,862 rooms across 13 major Indian cities**, including Delhi-NCR, Bengaluru, Hyderabad, Pune, Mumbai, and Chennai. It partners with leading global operators—**Marriott, IHG (InterContinental Hotels Group), and Hyatt**—to leverage their brands, loyalty programs, and operational expertise, while retaining full control over strategic and financial decisions. --- ### **Core Strategy** #### **1. Strategic Market Positioning** Samhi focuses on high-density, high-demand urban business and aviation hubs with strong office absorption and infrastructure growth. Its hotels are situated in locations with **proximity to ~42 million people and 225 million sq. ft. of commercial space**, ensuring sustainable, low-volatility demand from domestic business travelers. - Targets **all five major Indian office markets**: Delhi-NCR, Bengaluru, Hyderabad, Pune, and now Mumbai. - Seeks **long-term demand, high barriers to new supply**, and proven demand-supply gaps in metro areas. #### **2. Multi-Segmented Portfolio Approach** Samhi’s hotel portfolio is segmented into **three distinct price tiers** that serve diverse traveler needs: - **Mid-scale**: Compact 14 sq. mt. rooms; high operational efficiency and low capital expenditure (capex) per room (e.g., Holiday Inn Express). - **Upper Mid-scale**: Balanced scalability and profitability (e.g., Fairfield by Marriott, Four Points by Sheraton). - **Upper Upscale & Upscale**: Premium offerings targeting MICE (meetings, incentives, conferences, exhibitions), luxury dining, and high-end leisure (e.g., Westin, W, Sheraton, Hyatt Regency). - Portfolio mix as of FY25: ~85% of income derived from upscale and upper mid-scale segments. - 94% of mid-scale volume is domestic, 76% in upper mid-scale, and 65% in upscale—indicating strong domestic market resilience. #### **3. Capital-Efficient Growth Model** Samhi prioritizes **capital efficiency and scalability**, primarily through **acquisitions (87% of inventory)** and **leasehold developments**, avoiding speculative greenfield projects. - **Leasehold Business Model**: Increasing share of leased assets (targeting **>20% of revenue by FY25**), using **variable, revenue-linked leases** (up to 60-year terms). - Reduces capex and shortens **capex-to-revenue cycle** from **~4 years to under 2 years**. - Minimizes balance sheet risk while capturing long-term upside. - Targets ROCE of **15% or higher**, with select mid-scale assets (e.g., HITEC City, Hyderabad) achieving ~45% ROCE. - Avoids greenfield builds unless in **zero-supply**, high-demand corridors (e.g., Navi Mumbai). #### **4. Portfolio Repositioning and Premiumization** Samhi is actively rebranding and renovating underperforming assets to drive value accretion and premiumization. - Aims to increase **upscale segment contribution to revenue from ~42% to 60% by FY2029**. - Key rebranding initiatives: - Four Points by Sheraton → Courtyard by Marriott (Pune, Jaipur). - Caspia → Holiday Inn Express (Delhi, Greater Noida). - Office-to-hotel conversions (e.g., W Hotel, Hyderabad). - Rebranding and fit-outs can generate **2x–2.5x growth in RevPAR** and improve EBITDA margins. --- ### **Growth Pipeline & Key Projects (Nov 2025)** #### **1. Landmark Navi Mumbai Development** - **Dual-branded Westin & Fairfield by Marriott hotel** near the **Navi Mumbai International Airport** and **DY Patil Stadium**. - **Phase I: ~400 rooms**, expandable to **700 rooms** upon full development—**Samhi’s largest asset by room count**. - **Land acquired via ACIC transaction with minimal cost**, creating structural advantage. - Secured **timeline extension from MIDC**; construction underway. - Represents the foundation of **“SAMHI 2.0”**, mirroring the transformative impact of the Courtyard Fairfield in Bangalore (now generating ~₹200 cr revenue, ~₹100 cr EBITDA). - Will complete Samhi’s presence in all **top five Indian office markets**. #### **2. Hyderabad Financial District Expansion** - **Leased a 260-key mid-scale hotel** under a **long-term variable lease** in Hyderabad’s Financial District. - Samhi responsible for **interior fit-out only**, reducing upfront capex to **₹1,250–1,430 million**. - Landlord responsible for shell, façade, and high-side MEP systems. - Enables **multi-tier presence** in the area: - **Sheraton** (Upscale+) - **Fairfield** (Upper Mid-scale) - New **Mid-scale property** - Adds critical scale and density in one of India’s fastest-growing office hubs. #### **3. W-branded Hotel, Hyderabad** - **170-room W Hotel** in HITEC City under conversion from an office building. - Design finalized; mock-up rooms to begin in **Q4 FY26**. - Targeted opening: **December 2026**. - First large-scale office-to-hotel conversion of its kind in India; capital-efficient model. - Projected to deliver **premium RevPAR** and enhance brand diversity. #### **4. Whitefield, Bangalore – Westin & Tribute Portfolio** - Developing a **combined 362-room project** (220-room Westin + 142-room Tribute Portfolio). - Renovation and rebranding of existing assets. - Located in India’s second-largest office micro-market; strong aviation and corporate tailwinds. - Expected completion: **FY28–FY29**. #### **5. Other Growth Projects** - **Hyatt Regency Pune** added 22 serviced apartments and a new restaurant (FY26 completion). - Expansion of **Sheraton Hyderabad** by 54 rooms (in progress, FY26). - Additional 300+ rooms from conversions/additions in **Pune, Kolkata, Chennai (Sriperumbudur), and Greater Noida**. --- ### **Financial & Operational Performance** #### **1. Revenue & Growth Outlook** - **Existing portfolio revenue base**: ₹12,000 million. - **Secured growth pipeline** (as of Sep 2025): - + **804 upscale rooms** (473 from rebranding), +260 mid-scale, +436 upper mid-scale. - **Total rooms to exceed 6,300** in the near term. - **Incremental revenue**: ~₹8,000 million from committed projects. - **Projected total revenue by FY30**: ₹29,000–₹31,500 million. - **Revenue CAGR forecast**: **9–11% same-store**, up to **17–18%** with rebranding and new openings. #### **2. Profitability & Margins** - **Proforma FY25 EBITDA**: ~₹6,300 million on ₹15,300 million revenue (**~41% margin**). - High direct booking ratio (**84% of business**) reduces OTA dependency and commission costs. - **Leasehold model**: Enables high ROCE (e.g., 45% in HIE Hyderabad) due to low capex and faster cash-to-revenue cycle. #### **3. Balance Sheet & Capital Strategy** - **Debt reduction post-IPO**: Net Debt/EBITDA improved from 3.2x to **2.7x** (adjusted for capex); target **<3.0x**. - **Investible surplus**: ₹7,800–₹17,000 million projected over FY26–FY30. - Funds future growth through: - **Internal accruals** - **Tactical M&A** - **Long-term leases** - **Joint ventures (GIC partnership)** --- ### **Strategic Partnerships & Capital Recycling** #### **1. GIC Joint Venture (Upscale Platform)** - In **April 2025**, Samhi partnered with **GIC (Singapore’s sovereign wealth fund)** to form a **$300 million (~₹25,500 cr) upscale hotel investment platform**. - **Equity split**: 65% Samhi, 35% GIC. - Seed assets: **5 upscale hotels, 1,000+ rooms** in Bengaluru and Pune (e.g., Hyatt Regency Pune, Courtyard ORR, Fairfield ORR, Trinity rebranded as Tribute). - Samhi will manage operations and earn a **4% quarterly asset management fee on EBITDA**. - **Benefits**: - De-risks capital for large upscale projects. - Enhances corporate governance and institutional credibility. - Frees up balance sheet for further acquisitions. #### **2. Capital Efficiency & Recycling** - Focus on projects with **short capex-to-revenue cycles** (≤2 years). - Uses **capital recycling** to fund future growth: - Sale of non-core assets. - Divesting assets into the GIC JV. - Exploration of similar capital partnerships for mid-scale portfolio. --- ### **Technology & Data Advantage** #### **SID (formerly SAMHI Intel)** - **In-house proprietary asset management platform** built over 14 years. - Integrates **financial, operational, and market data** across 34+ hotels. - Enables: - Real-time performance benchmarking. - Acquisition underwriting. - Predictive maintenance via **SAMConnect (IoT platform)**. - Capital-efficient project monitoring. - Recognized by third parties for potential as **external asset management product**. #### **Asset Management Independence** - Retains full control over brand, budget, development, and exit strategies, even in joint ventures or leased assets. - Operates as an **owner-led asset manager**, independent of hotel operators. --- ### **Sustainability & ESG** - **Environmental initiatives**: - **30–33% renewable energy usage**, targeting **40–50%**. - **Plastic-free initiatives**: Aiming for first **plastic-free Holiday Inn Express chain in India**. - **Smaller footprint**: Mid-scale rooms have ~**50% lower environmental impact per room** vs industry peers. - **Social impact**: Focus on **domestic customer base (94% mid-scale)** and economic development through urban regeneration. --- ### **Rationale for Growth & Industry Tailwinds** #### **1. India’s Hospitality Demand-Supply Gap** - **Hotel supply** growing at **~3–4% CAGR**, lagging **office space absorption (7–10% CAGR)**. - New developments hindered by **high land costs, complex approvals, and long gestation**. - Samhi’s **brownfield acquisition model** provides structural advantage—**acquiring assets at 30–40% below replacement cost**. #### **2. Domestic Travel Resilience** - Portfolio is **primarily domestic** across all segments. - Strong growth in **leisure travel, social events, and MICE** supported by rising disposable incomes. #### **3. Strategic Urban Development** - Navi Mumbai, Whitefield, HITEC City, and Pune benefit from **infrastructure megaprojects** (e.g., Atal Setu, NMIA, expansion of metro networks). - Samhi leverages these **city-center-to-core-hub transitions** to enter ahead of demand curves.