Hi @DeveshKedia,
Coincidentally, I had planned to start a thread on SAMHI today.
Glad that you have covered it comprehensively.
I like the Sam Zell approach followed by SAMHI of buying distressed hotels and turning it around using rightsizing and rebranding. While their distinct strategy of targeting areas where airport and office space are nearby leads to steady occupancy and room rents driven by corporate demand.
I think an asset heavy capex is critical when buying distressed assets, however, if mgt can create a track record of monetising the assets using sale and leaseback once they are turned around, that will be a major driver for re-rating.
Given the differentiated business model, the only comparable peer is Chalet Hotels which trades at TTM EV/EBITDA of 35x while SAMHI trades at 22x. Notably, SAMHI is expected to report 35% EBITDA CAGR over FY23-26 vs 24% for Chalet.
Disclosure: Invested since IPO, added post 3Q24 results as well.
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