Samhi Hotels Limited, a leading player in the Indian hospitality sector, has reported robust financial results for Q2 FY26, accompanied by significant expansion plans that mark a transformative phase for the company.

Strong Financial Performance

For Q2 FY26, SAMHI Hotels demonstrated solid growth across key financial metrics:

The company's profit after tax stood at INR 99.00 crores, which includes a reversal of the Navi Mumbai land impairment of INR 57.00 crores.

Improved Financial Position

SAMHI Hotels has significantly strengthened its balance sheet:

• Net debt to EBITDA reduced to 2.9x
• Average interest cost decreased to 8.50%
• Credit rating upgraded to A+ with a stable outlook

Major Expansion Initiatives

The company announced two transformative growth projects:

1. Navi Mumbai Dual-Branded Hotel Development:

   • Landmark project near the upcoming Navi Mumbai International Airport
   • Dual-branded hotel under Westin and Fairfield by Marriott
   • Phase 1: 400 rooms (expandable to 700 rooms)
   • Investment: INR 650.00 crores for Phase 1
   • Estimated EBITDA potential: INR 180.00-185.00 crores (for 700 rooms)

2. Hyderabad Financial District Hotel:

   • 260-room mid-scale hotel
   • Long-term variable lease structure
   • Third property in the precinct alongside existing Sheraton and Fairfield by Marriott

Strategic Importance of Expansions

The Navi Mumbai project marks SAMHI's entry into the Mumbai metropolitan region, completing its presence across India's five largest office markets. The Hyderabad project strengthens the company's position in one of India's fastest-growing office corridors.

Management Commentary

Ashish Jakhanwala, Chairman, MD, and CEO of SAMHI Hotels, stated, "Q2 FY26 represents a clear inflection point for SAMHI. We are delivering consistent operating performance, maintaining financial discipline, and executing a transformational growth pipeline that will define SAMHI's next decade."

Future Outlook

Management expects H2 FY26 performance to significantly exceed H1 results and maintains revenue growth guidance of 9-11% CAGR for same-store hotels over the next 3-5 years.

SAMHI Hotels is well-positioned to leverage its strengthened balance sheet and robust free cash flows to fund its expansion plans, setting the stage for sustained growth in the coming years.

Conclusion

SAMHI Hotels' strong Q2 FY26 performance, coupled with its strategic expansion plans in key markets, underscores the company's robust growth trajectory and its commitment to capitalizing on the evolving dynamics of India's hospitality sector.

Samhi Hotels Limited, a prominent branded hotel ownership and asset management platform in India, has reported financial results for the second quarter, along with significant business developments that are set to reshape its future growth trajectory.

Financial Highlights

For Q2, SAMHI Hotels demonstrated growth across key financial metrics:

• Revenue Per Available Room (RevPAR) increased by 11.20% year-over-year to ₹5,026.00
• Total income rose by 11.00% to ₹2,963.00 million
• Consolidated EBITDA grew by 14.20% to ₹1,105.00 million
• Profit After Tax (PAT) surged by 691.10% to ₹998.00 million

The company maintained an occupancy rate of 75% during the quarter.

Half-Year Performance

The first half also showed results:

Strategic Developments and Expansion Plans

SAMHI Hotels is pursuing a growth strategy with two significant developments:

1. Navi Mumbai Expansion

The company plans to develop a dual-brand project near the Navi Mumbai International Airport and DY Patil Stadium. This project is expected to feature approximately 700 rooms, with an initial phase of about 400 rooms. The hotel is proposed to operate under the Westin and Fairfield by Marriott brands, subject to the execution of definitive agreements.

2. Hyderabad Financial District Entry

SAMHI has signed a lease agreement for a ~260-room mid-scale hotel to be developed as part of a mixed-use project in Hyderabad's Financial District.

Future Growth Projections

• SAMHI Hotels plans to add 8% to its inventory.
• The company has set a target of achieving 9-11% CAGR growth in RevPAR.
• SAMHI Hotels reported 16% EBITDA growth in H1.

Improved Financial Position

The company's financial position has strengthened:

• Net Debt to EBITDA ratio improved to 2.9x as of September 30, compared to 4.4x as of March 31
• Annualized interest cost reduced to ₹1,250.00 million, down from ₹1,900.00 million
• Credit rating upgraded to A+ stable by CARE

Management Commentary

Ashish Jakhanwala, Chairman & Managing Director of SAMHI Hotels Ltd., commented on the results: "We are pleased to announce strong results for the period ending 30th September, along with news of the landmark development in Navi Mumbai. The total revenue growth of ~11.00% and consolidated EBITDA growth of 14.20% over the same period last year sets a very strong base for the remaining part of the fiscal year and for the next."

He added, "We are very excited about the Navi Mumbai development. This project will redefine both Navi Mumbai's skyline and SAMHI's future with the potential to create a 700-room dual-branded hotel. We are happy to contribute to the state's commitment to make Navi Mumbai a world-class city."

Future Outlook

With these strategic expansions and the continued performance of its existing portfolio, SAMHI Hotels is positioned for future growth. The company's focus on key commercial districts and its multi-brand strategy are expected to drive revenue growth and market share expansion in India's hospitality sector.