Samhi Hotels Q1FY25 Concall Summary.
Financial Performance
Revenue: SAMHI Hotels reported an asset income of INR 251 crores, marking a 31% year-on-year growth. This growth was driven by strong same-store growth and the addition of the ACIC portfolio.
Profitability: The asset EBITDA was INR 95 crores, showing a 32% increase year-on-year. The consolidated EBITDA stood at INR 89 crores, an 88% growth compared to the previous year. The reported PAT (Profit After Tax) was INR 4 crores.
Margins: The asset EBITDA margin was 37.7%, slightly diluted by the ACIC portfolio, which had a margin of 35%. The consolidated margin reached 34.6%.
Operational Metrics
RevPAR (Revenue Per Available Room): The same-store assets experienced a 13% year-on-year RevPAR growth, indicating robust demand in core markets such as Bangalore, Hyderabad, Delhi NCR, and Pune.
Occupancy: The company did not provide specific occupancy rates, but the focus on RevPAR growth suggests a strong occupancy performance.
Strategic Initiatives
New Locations and Expansion: SAMHI Hotels is actively expanding its inventory with plans to open 165 new rooms in Kolkata and Bangalore between September and November 2024. Additional projects include adding 22 apartments in Hyatt Regency Pune and 54 rooms at Sheraton Hyderabad.
Renovation and Rebranding: The company is renovating and rebranding several properties, including converting the Caspia Pro in Greater Noida to a Holiday Inn Express, and two ACIC portfolio assets in Pune and Jaipur to Marriott brands. These initiatives aim to enhance the average rate profile and EBITDA potential of these assets.
Future Outlook and Guidance
Growth Prospects: The management expressed confidence in both near-term and long-term growth, driven by macroeconomic factors such as the expansion of commercial office space and the aviation market in India. The company aims for a 10% to 15% inventory CAGR over the coming years.
Earnings Guidance: SAMHI Hotels expects significant EBITDA growth from renovation and rebranding activities, with a potential 25% increase in EBITDA based on FY24 numbers. The management anticipates high single-digit to low double-digit RevPAR growth in the upcoming quarters.
Management Tone
The management’s tone during the conference call was optimistic and confident. They highlighted strong market demand, strategic expansion plans, and operational efficiencies as key drivers for future growth. The focus on renovation and rebranding, along with disciplined capital allocation, underscores their commitment to enhancing shareholder value and maintaining a strong financial position
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