SAMHI Hotels Reports 14.3 Percent RevPAR Growth in Q2, Lines Up 1,700 Rooms for Expansion by FY2031

SAMHI Hotels Limited reported a 15.6 percent year-on-year increase in total income to Rs 3,427 million in Q2 FY27, supported by higher room rates, improved occupancy and stronger demand across its hotel portfolio. The company's revenue growth came alongside a 14.3 percent increase in Revenue Per Available Room (RevPAR), while its occupancy rate improved to 78.6 percent from 75 percent in Q2 FY26.

The hotel ownership and asset management company recorded a 9.2 percent increase in Average Room Rate (ARR), contributing to the improvement in RevPAR. Domestic travellers accounted for approximately 80 percent of the room nights sold during the quarter, indicating the importance of domestic demand to its hotel business.

Consolidated EBITDA stood at Rs 1,238 million, compared with Rs 1,105 million in the corresponding quarter last year, registering 12 percent growth. Excluding the impact of changes in GST regulations, comparable EBITDA growth stood at 21.3 percent. The reported EBITDA margin was 36.1 percent, while the margin excluding the GST impact was 39.1 percent.

The company reported Profit Before Tax (PBT), excluding exceptional items, of Rs 534 million, registering 39.9 percent year-on-year growth. Profit After Tax (PAT), excluding exceptional items, stood at Rs 372 million, up 136.9 percent. Reported PAT was Rs 411 million, which included an exceptional gain of Rs 39 million. The corresponding quarter in FY26 included exceptional gains of Rs 841 million.

For H1 FY27, SAMHI's revenue from operations increased 11.5 percent to Rs 6,510 million. EBITDA grew 4.2 percent to Rs 2,251 million, while PBT before exceptional items rose 34.5 percent to Rs 862 million.

Expansion through new hotel inventory is expected to contribute to the company's next growth phase. SAMHI has secured a pipeline of approximately 1,700 rooms through FY2031 and is preparing to open the W Hotel in Hyderabad in the next fiscal year. The company is focusing on adding properties in its existing core markets through conversions, operational turnarounds and long-term lease arrangements.

Its development strategy includes strengthening its presence in markets such as Bengaluru, Noida and Hyderabad. The company is also investing in RARE India, with discussions underway for a potential partnership with Marriott to develop its experience-led leisure hospitality platform across the region.

Ashish Jakhanwala, MD & CEO, SAMHI Hotels Ltd., said, "We are pleased to report our performance for the quarter. Occupancy held close to 80% and RevPAR grew by about 14%, making this a reassuring period for the business. Revenue growth remained ahead of our long-term guidance. Domestic travellers accounted for about 80% of the room nights sold during the quarter. This cohort has proven more resilient amid ongoing geopolitical instability, reinforcing our confidence in the resilience of the Indian economy and the opportunity it represents. Against this strong backdrop, we have been steadily building for the future. For several quarters, our reported growth has been largely driven by same-store performance, as no new inventory came online. This is set to change. We look forward to opening the W Hotel in Hyderabad next fiscal year and have secured a pipeline of approximately 1,700 new rooms through FY2031. These initiatives put us on a path to strong growth, and our focus now is on delivering them on schedule. We are equally proud of having built this pipeline without compromising our discipline: we add assets only in core markets and at a discount to replacement cost. We are not buying growth through expensive acquisitions; instead, we are building it through the efforts that conversions and turnarounds demand, as demonstrated in Bangalore, and by securing long-term leases, as in Noida and Hyderabad. Our modest investment in RARE, together with ongoing discussions on a partnership with Marriott, will help RARE build a strong platform in experience-led leisure across the region, with limited capital exposure. We expect H2 FY27 to be operationally stronger. Going forward, incremental EBITDA is expected to translate into free cash flow, with interest outflows remaining stable. This should enable us to increasingly fund future growth investments through internal cash generation, supporting a disproportionate improvement in free cash flow generation."

On the balance sheet front, SAMHI reported free cash flow of Rs 827 million during the quarter. Its net debt stood at Rs 14,579 million as of September 30, 2026, with net debt-to-EBITDA at approximately 3.1x. The leverage ratio stood at approximately 2.2x after adjusting for growth capital. Its effective interest rate declined to 7.8 percent, compared with 10.8 percent in September 2023.

The company also released its first Sustainability Report for FY2025-26, covering 31 hotels and 4,899 rooms across 11 states. The report tracks initiatives related to energy efficiency, waste management and renewable energy usage, with plans to establish measurable targets under its FY30 sustainability commitments.

SAMHI's Q2 performance reflects the contribution of existing hotels to revenue growth, while its upcoming room additions are expected to provide another source of business expansion. The company's focus for the coming periods will be on bringing new inventory online, improving operating margins and generating cash flow to support future investments.