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Samhi Hotels

  • Writer: Dhruv Meisheri
    Dhruv Meisheri
  • Jun 1
  • 2 min read

Company Overview

  • Samhi Hotels is a branded hotel ownership and asset management company in India, focused on mid-to-upscale business hotels.

  • It partners with leading global hotel operators like Marriott, Hyatt, and IHG, operating under well-known brands such as Fairfield, Holiday Inn Express, and Hyatt Regency.

  • The company owns and operates 30+ hotels with over 4,800 rooms across key Indian cities like Bengaluru, Hyderabad, Pune, and NCR.

  • Samhi is backed by institutional investors and aims to grow through acquisitions and capitalize on rising travel demand in India.


Industry

  • India’s hotel industry typically has long-dated cycles, with the last one lasting from 2001-2009

  • We are currently seeing a huge supply demand mismatch, with hotel prices steadily increasing over past few years due to supply constraint

  • Will take years to catch up because it takes 3-5 years to come up 

  • Most of the supply growth (9.3% cagr until 2027) is in mid/economic hotels

  • Demand is expected to grow at double supply

    • This demand-supply mismatch gives hotels pricing power

    • ADR and occupancy have been increasing 


Business Segments

  • Room = 72%, F&B = 25%, Other = 3%

  • Own, acquire and develop hotels. But don’t manage them

  • Outsource the day to day operations to international brands like marriott, Hyatt

  • 32 hotels, ~5000 keys


Growth Drivers

  • Operating leverage

    • Airline passenger growth rates in the cities where Samhi operates is increasing in almost double digits

    • Office space net absorption are really good

  • Increasing mix of upper scale properties

    • Adding new inventory. Growing at about 15% over next 2 years

    • In good markets like bangalore and hyderabad

    • Low supply growth so they have pricing power

    • Business hotels are doing good

  • JV with GIC will help with upscale & higher category hotels for India 

  • Strong growth pipeline

    • Renovating Trinity Whitefield in Bangalore into 360+ room dual-branded hotel

    • Signed a long-term variable lease for converting an office building in Hitech City, Hyderabad, into a 170-room W-branded hotel (Marriott).


Management Guidance 

  • Post investment by GIC, net debt to EBITDA < 3.5x and is set to reduce to <3.0x levels allowing free cash to fuel growth 

  • ESOP Cost: Stood at ₹18 crores for FY25, expected to reduce to ₹10 crores in FY26 and stabilise at that level.

  • Over 300 new rooms in the Holiday Inn Express portfolio and 76 new rooms in Sheraton Hyderabad and Hyatt Regency Pune are now operational. These rooms are expected to contribute incremental revenues in FY26. The additional rooms at Sheraton Hyderabad and Hyatt Regency Pune are expected to be operational in H2 FY26.

  • Total planned capex for FY26 is expected to be about ₹175-200 crores. Of this, ₹50 crores will be contributed by GIC for the Bangalore asset, and about ₹125-150 crores will be spent from SAMHI's own cash flows for growth projects. Approximately ₹20 crores is planned for maintenance capex.


Valuation Model

ree

 

Risks

  • Private Equity owned company

  • High debt

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