Re-rating story driven by turnarounds and premiumization
SAMHI Hotels is a leading Indian hotel platform operating 31 hotels and 4,862 rooms across 13 major cities, managed by top international brands like Marriott, Hyatt, and IHG under long-term agreements. The company follows an acquisition-led growth strategy, leveraging a strong track record of turning around hotels to become one of the fastest-growing hotel owners. The company aims to capitalize on the strong structural tailwinds within the hospitality space by expanding its portfolio by rebranding 473 rooms, and adding 1,500 rooms through expansion and new openings, which supports revenue growth. Over FY25–30E, we foresee the company’s revenue & EBITDA growing at 14% and 18% CAGR, while the EBITDA margin should improve by 600 bps to around ~42%. We initiate coverage on SAMHI Hotels with a BUY rating and a target price of INR 260, valuing the stock at 12x FY28E EV/EBITDA.
