Samhi Hotels Limited — Important, 29-01-2025: General Updates

**Financial Highlights:** SAMHI Hotels Ltd. reported a RevPAR of ₹35,088 for Q3 FY25, reflecting a YoY growth of 15.1%, signaling robust demand. Total income reached ₹22,987 million, marking a 9.3% YoY increase, while the consolidated EBITDA (pre-ESOP) stood at ₹1,177 million, showcasing a solid growth trajectory. The company's finance cost for the quarter included a one-time non-cash impact of ₹165 million from refinancing, expected to generate annual savings of approximately ₹160 million.

**Strategic Initiatives and Growth Drivers:** The company continues to enhance its portfolio through property acquisitions and renovations, particularly focusing on the Upper Upscale & Upscale segments to double its inventory. Notable ongoing projects include the rebranding of the ACIC Portfolio and opening new hotels that align with SAMHI’s growth ambitions.

**Business Developments:** SAMHI's performance is buoyed by a strong recovery in commercial activities across key markets like Bengaluru, Hyderabad, and Mumbai, with office space absorption showing promising trends. The addition of new rooms and continued focus on same-store growth are pivotal for long-term operational sustainability.

**Market Position and Competitive Advantage:** With 72% of total absorption in the prime markets accounted by key cities where SAMHI operates, the firm underscores its competitive positioning amidst rising air passenger traffic, which continues to bolster the demand for hotel room nights.

**Investor Implications:** The outlook remains positive as SAMHI leverages its growth strategies. The combination of strong operational metrics, strategic acquisitions, and ongoing recovery in the hospitality sector could present compelling opportunities for investors looking at the hospitality space.