SAMHI Hotels FY25 results: How GIC backing and rising room rates powered a turnaround

SAMHI Hotels Limited (NSE: SAMHI, BSE: 543984), one of India’s fastest-scaling branded hotel ownership and asset management platforms, delivered a solid financial performance in FY25 with a profit after tax (PAT) of ₹855 million. This marks a sharp turnaround from a net loss of ₹2,346 million in FY24 and comes on the back of robust asset income growth, disciplined cost control, and a landmark capital partnership with Singapore’s sovereign wealth fund GIC.

Amid a recovering hospitality sector, SAMHI’s full-year results underscore its ability to scale operations efficiently and deliver value-accretive growth. The company also recorded its highest-ever EBITDA margin while significantly improving its leverage metrics post-deal. These milestones position SAMHI among the most watched mid-cap hospitality plays in the Indian equities space today.

Why Did SAMHI Hotels’ FY25 Revenue Surge?

SAMHI Hotels reported a 17.7% year-over-year increase in asset income, rising from ₹9,630 million in FY24 to ₹11,333 million in FY25. On the EBITDA front, performance was even stronger, with asset EBITDA increasing by 21.2% to ₹4,576 million. The company achieved an asset-level EBITDA margin of 40.4% for the year, higher than the 39.2% recorded in FY24, supported by improved operating leverage, scale efficiencies, and higher pricing power.

A key driver behind the growth was a 16.5% YoY increase in RevPAR (Revenue per Available Room), which reached ₹5,015 for FY25. Occupancy remained healthy at 74% across the portfolio, showing resilience despite inflationary pressures and the continued shift in corporate travel patterns.

Q4 FY25 also added momentum. RevPAR surged 20.6% YoY to ₹5,958, driven by stable occupancy of 75% and robust business demand from major metros like Bengaluru and Hyderabad. Same-store asset income and EBITDA growth came in at 15.8% and 22%, respectively, highlighting the strength of SAMHI’s core portfolio, even before factoring in benefits from the recent ACIC and Trinity acquisitions.

How Did the GIC Transaction Reshape SAMHI’s Balance Sheet?

In a move viewed as a major institutional endorsement of SAMHI’s strategy, the company announced the closing of a strategic partnership with GIC during FY25. The collaboration resulted in the creation of a dedicated Upscale+ hotel investment platform seeded with over 1,000 rooms located in high-barrier, high-demand markets like Pune and Bengaluru.

This capital infusion and platform alignment significantly improved SAMHI’s financial metrics. Net debt declined from ₹19,669 million as of March 2025 to ₹14,289 million post-deal. The Net Debt-to-EBITDA ratio improved from 4.4x to 3.2x, providing a much healthier leverage profile compared to previous years.

Additionally, the average interest cost dropped to 9.2% from 9.8% in FY24, and annualised interest outgo reduced from ₹1,990 million to ₹1,430 million. These changes improve SAMHI’s debt servicing ability and open up headroom for further growth without over-leveraging the balance sheet.

What Is Driving Institutional and Investor Interest in SAMHI?

SAMHI Hotels’ stock closed at ₹192.30 on May 29, 2025, marginally up by 0.32% from the previous session. The traded volume reached over 25 lakh shares, with a total traded value of ₹48.92 crore. Approximately 50.24% of traded shares were marked for delivery, reflecting solid interest among long-term investors.

Institutional sentiment appears to be constructive, especially after the GIC-led de-leveraging. With a market cap of ₹4,253.79 crore and a free float of ₹3,191.66 crore, the company is increasingly attracting coverage from mid-cap focused funds. SAMHI’s adjusted P/E ratio stands at 89.54, while the symbol P/E is 83.26, indicating a valuation premium driven by growth visibility and scarcity of listed hospitality platforms with strong asset ownership.

SAMHI’s tie-ups with global brands—Marriott, IHG, and Hyatt—also strengthen investor confidence by ensuring quality, brand standardisation, and occupancy resilience.

How Does SAMHI Compare Against Sector Trends?

The Indian hospitality sector is experiencing a strong post-pandemic rebound, with commercial travel and urban business demand leading the recovery. According to industry estimates, India’s hotel market is expected to grow at a CAGR of 9–10% until 2030, driven by urbanisation, domestic tourism, and rising disposable incomes.

Compared to many domestic hotel chains that rely on management contracts or lease models, SAMHI’s strategy as a branded asset owner provides higher EBITDA conversion and better control over capital allocation. Its same-store performance in Q4FY25—22% EBITDA growth—outpaces many of its listed peers, making it a compelling case for asset-backed exposure in hospitality.

Another differentiator is SAMHI’s scale and geographic spread. With 32 hotels and 4,948 keys across 14 cities, it maintains a strong presence in both metros and Tier 1 business districts. This mitigates concentration risk and positions it to benefit from pan-India recovery trends.

What Do the FY25 Earnings Say About Margin Trends and Expense Control?

SAMHI’s consolidated EBITDA for FY25 before ESOP and one-time costs stood at ₹4,434 million, a 27.3% increase over the prior year. Including ESOP and exceptional items, EBITDA came in at ₹4,257 million—up 47.9% YoY. Net corporate G&A expenses were also reduced from ₹293 million in FY24 to ₹142 million, underlining the management’s push for tighter financial controls.

Notably, the company managed to reduce its ESOP costs from ₹606 million in FY24 to ₹177 million in FY25. Management has guided that this will further decline to ₹100 million in FY26, which should boost net profitability and strengthen investor perception around cash-based earnings.

What’s Next for SAMHI Hotels in FY26?

Chairman and Managing Director Ashish Jakhanwala outlined a focused roadmap for FY26 that prioritises scalable growth, platform integration, and sustained margin expansion. With GIC now a strategic partner, the company is expected to pursue targeted acquisitions and greenfield hotel development under the Upscale+ model.

Investors are also watching closely for updates on operational turnaround in the Trinity and ACIC portfolios. Given the same-store outperformance and SAMHI’s history of efficiently integrating newly acquired assets, expectations are high for further margin improvement in FY26.

Industry observers also expect SAMHI to tap institutional capital markets again, possibly via a REIT structure or additional equity issuance, as it continues to consolidate its position in the Indian hospitality landscape.

Positioning SAMHI Within India’s Hotel Sector Rebound

The FY25 performance comes at a time when India’s hospitality sector is undergoing structural shifts post-COVID. Companies that invested early in digital, asset-light models or marquee real estate have struggled with occupancy and capex cycles. SAMHI, by contrast, built its portfolio on operational turnarounds and has benefited from a more active asset management philosophy. With partnerships across Marriott, Hyatt, and IHG, the company is insulated from brand risk and benefits from diversified channel mix.

As India prepares for a tourism boom driven by G20-induced global attention, improved air connectivity, and government incentives for hospitality infrastructure, players like SAMHI are well-positioned to benefit from secular tailwinds.