01 — At a Glance
The Hotel Chain That’s Finally Stopped Bleeding
- 52-Week High / Low₹255 / ₹120
- FY25 Full-Year Revenue₹1,130 Cr
- FY25 Full-Year PAT₹85.5 Cr
- Full-Year EPS (FY25)₹3.87
- Annualised EPS (Q2×4)₹7.16
- Book Value₹80.7
- Price to Book1.87x
- Debt / Equity0.97x
- Operating Margin36.1%
- Interest Coverage1.86x
Auditor’s Note: SAMHI Hotels went from losing money faster than a Bollywood remake to actually making profit. FY25 saw ₹85.5 crore PAT on ₹1,130 crore revenue, with GIC Pte. Limited throwing ₹604 crore at it (out of promised ₹752 crore) to slash debt and stabilize the ship. Q2 FY26 annualized EPS sits at ₹7.16 — better than FY25’s ₹3.87 full-year. That’s improvement. That’s also why the stock is down 15% in 3 months. Welcome to India, where good news crashes the market.
02 — Introduction
The Hotel Business: Where Bad Timing and Debt Collide
SAMHI Hotels is a branded hotel ownership and asset management platform. Translation: they buy old, struggling hotels, renovate them, slap a Marriott or Hyatt badge on them, hand operational keys to a professional hotel operator, and then sit back and collect rent. Sounds simple. Turns out it’s one of the most capital-intensive, leverage-heavy, cyclicality-prone businesses in India.
The company was founded by Ashish Jakhanwala and Manav Thadani — two blokes who walked into a hotel recession, decided to double down, and somehow managed to stay operational long enough for things to turn around. As of June 2025, they own and operate 32 hotels across 14 cities with 4,948 rooms under 10 brands: Marriott (Courtyard, Sheraton, Fairfield, Renaissance, Four Points), Hyatt (Regency, Place), and IHG (Holiday Inn Express).
For years, the math didn’t work. Debt exploded. Losses compounded. Interest payments ate profits before they even existed. Then something magical happened: occupancy rates stabilized, Average Room Rates (ARR) climbed, and suddenly the business model — which had been theoretically sound but financially catastrophic — started generating actual cash flow. GIC Pte. Limited stepped in with ₹752 crore in fresh capital. Debt got slashed. Leverage ratios stopped looking like cardiac arrest victims. And now, for the first time in ages, the company is printing profit.
The question, of course: at what price? And is the turnaround actually durable? Let’s find out — with data, sarcasm, and the financial honesty your portfolio manager charges ₹5 lakhs a year to avoid.
Management Insight (Mar 2026 Concall): “RevPAR growth of 8–11% anticipated in near-to-medium term,” said management. They also admitted that even as occupancy hit ~74% and ARR crossed ₹6,654, competitive pressure and economic cycles remain real threats. Refreshingly candid for an India hospitality company.
03 — Business Model: WTF Do They Even Do?
Buy Broken Hotels. Fix Them. Let Marriott Run Them. Profit.
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