Strategic Moves Propel SAMHI Hotels’ Q1 Success

SAMHI Hotels Limited, a prominent player in India’s branded hotel ownership and asset management sector, has delivered impressive financial results for the quarter ending 30 June 2024. The company’s unaudited financial statements reveal a consolidated EBITDA of ₹934 million, underscoring a robust operational performance bolstered by strategic growth initiatives.

For the quarter under review, SAMHI Hotels recorded total revenue of ₹2,568 million. This impressive performance is further accentuated by a 13% year-on-year increase in Revenue per Available Room (RevPAR), signalling sustained demand and operational strength in its core markets. The company’s adept management in driving RevPAR growth illustrates its effective strategic positioning amidst a competitive landscape. Chairman and Managing Director of SAMHI Hotels commented on the successful integration of ACIC, a recent acquisition that has already shown positive effects on profit margins. Notably, there has been a significant enhancement of 520 basis points in profit margins during the first quarter of FY25 compared to the pre-acquisition phase. The ongoing rebranding of two ACIC hotels is anticipated to further enhance their contribution to the company’s overall performance.

Financially, SAMHI is well-positioned, demonstrating strong liquidity and healthy free cash flows from operations for FY25. This financial robustness allows the company to explore both internal growth avenues and potential external acquisitions. The ongoing expansion of SAMHI’s existing portfolio, alongside the opening of new hotels and renovations, reflects a commitment to enhancing asset quality while maintaining a robust pipeline in key markets. The strategic emphasis on quality improvement and sustainability positions SAMHI Hotels favourably for future growth. The company’s robust performance in Q1 FY25 is indicative of effective management and strategic foresight, which bodes well for continued success in the forthcoming quarters. As SAMHI continues to strengthen its market position, its commitment to sustainability through responsible growth practices remains a cornerstone of its operational ethos.