1. At a Glance
From drowning in debt to checking in with profits, Samhi Hotels has gone from “will they make it?” to “can they book more rooms?” in just a couple of years. With 32 branded hotels (4,948 keys) across 14 cities under Marriott, Hyatt, and IHG flags, this asset-heavy yet turnaround-focused platform is riding a 36%+ EBITDA margin and posting triple-digit profit growth. Q1 FY26 saw revenue up 13%, PAT up 354% — and they even sold a hotel (Caspia) for ₹65 crore just to prove they can cash out when needed.
2. Introduction
If Indian Hotels is the Taj Mahal and Lemon Tree is your mid-range weekend escape, Samhi Hotels is the real estate renovator who buys the fixer-upper, polishes it up, and gets Marriott to run it.
They don’t run the hotels themselves — they own the buildings, upgrade them, and hand the keys to world-class operators like Marriott, Hyatt, and IHG. In return, they get access to global loyalty programs, operational expertise, and customers who wouldn’t otherwise trust a no-name local chain.
What makes them spicy is theiracquisition-led turnaround model. Buy struggling hotels in demand-heavy micro-markets, rebrand them under top-tier names, and watch RevPAR climb like the bill for hotel room service. Add a healthy dose of asset-light leasehold expansion (capex cycles cut from 4 years to under 2), and you’ve got a company aiming for an ROCE of ~18%.
3. Business Model (WTF Do They Even Do?)
- Portfolio:32 hotels, 4,948 keys, 14 cities.
- Segments:
- Upper Upscale/Upscale (22%)– Hyatt Regency, Sheraton, Westin. RevPAR: ₹8,954.
- Upper Mid-scale (45%)– Fairfield, Four Points. RevPAR: ₹5,580.
- Mid-scale (33%)– Holiday Inn Express. RevPAR: ₹3,523.
- Revenue Mix (FY25):Rooms 72%, F&B 25%, Other 3%.
- USP:Buy underperforming hotels, invest in renovation/rebranding, partner with
- big brands, improve performance, repeat.
They’re basically the distressed asset PE fund of the hospitality world — but instead of flipping factories, they’re flipping hotels.
4. Financials Overview
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 272 | 250 | 319 | 8.93% | -14.7% |
| EBITDA (₹ Cr) | 100 (36.8% margin) | 82 (33% margin) | 122 (38% margin) | 21.9% | -18.0% |
| PAT (₹ Cr) | 19.8 | 4.2 | 46.0 | 368% | -57.0% |
| EPS (₹) | 0.78 | 0.19 | 2.07 | 310% | -62.3% |
Commentary:YoY growth strong; QoQ fall is seasonal in hotels (summer shoulder season). Margins remain healthy.
5. Valuation (Fair Value RANGE only)
Method 1: P/E
- TTM EPS: ₹4.46
- Industry P/E: ~38
- Applying 34–38x: ₹151–₹169 (current ₹205 suggests optimism priced in).
Method 2: EV/EBITDA
- EV: ₹6,690 Cr
- EBITDA (TTM): ₹414 Cr
- EV/EBITDA: 16.1x — in line with upscale peers.
Method 3: DCF (Simplified)
- Assume FCF ₹350 Cr by FY28, discount 12%, growth 10% → Range ₹170–₹210.
Educational FV Range:₹170–₹210.This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26:Revenue +13%, PAT +354%, margin 36.8%.
- Hotel Sale:Caspia offloaded for ₹65 Cr — minimal revenue
