Strategic partnerships, margin expansion, and capital discipline fuel a re-rating case in India’s rebounding hospitality sector.
SAMHI Hotels, a prominent hotel ownership and asset management company, is poised for a structural turnaround that investors are beginning to recognize. With fresh capital infusion from GIC, improved debt metrics, strong RevPAR trends, and strategic rebranding initiatives, the stock has caught the attention of institutional brokerages. Prabhudas Lilladher and Ventura Securities now project a potential 41–77% upside from current levels, driven by a more profitable growth trajectory and compelling valuations. With several tailwinds in place, SAMHI is being positioned as a compelling mid-cap opportunity in India’s post-pandemic hospitality boom. Notably, ace investor Madhuri Madhusudan Kela owns 37,48,681 shares (1.69% stake) worth INR 220.96 crore
This article dives deep into SAMHI’s transformation story — from a balance sheet-challenged operator to a capital-efficient, growth-ready hospitality platform that is increasingly drawing parallels with market leaders.
SAMHI Hotels Price Target
| Brokerage | Rating | Target Price (INR) | Upside from CMP | Implied FY27E EV/EBITDA Multiple |
| Prabhudas Lilladher | BUY | 313 | +41% | 14x |
| Ventura Securities | BUY | 391 | +77% | ~14.5x |
Company Snapshot: SAMHI’s Evolution
SAMHI Hotels operates an asset-heavy model with a diversified portfolio of 4,800+ rooms across key Indian metros, primarily in the upscale and upper-midscale segments. The company has affiliations with internationally renowned brands like Marriott, Hyatt, and IHG, giving it a brand presence without owning the brand IP. It follows a strategy of acquiring underperforming or mispriced hotel assets, upgrading them, and driving asset-level profitability.
Historically, SAMHI battled high debt, inconsistent earnings, and underutilized properties. However, it now appears to be turning the corner with a strategic focus on brand consolidation, operational discipline, and margin expansion.
Key changes in the last 12–18 months:
- Infusion of equity capital from GIC (Singapore’s sovereign wealth fund).
- Refocusing of capex towards high-yield assets.
- Monetization of non-core assets.
- Stronger alignment with global hospitality brands.
SAMHI’s transformation is not just financial but also strategic — focusing more on yield per key and less on footprint expansion.
Why Brokerages Are Turning Bullish on SAMHI Hotels
Both Prabhudas Lilladher (PL) and Ventura Securities have released upbeat outlooks on the stock, underlining the shift from a debt-laden, low-margin player to a growth-ready platform.
Highlights from brokerage commentary:
- Improved capital structure following the GIC investment.
- Earnings visibility supported by falling interest costs.
- RevPAR and ARR trends that outpace industry averages.
- High-quality pipeline of 245 rooms to drive future revenue.
- Strong operating leverage from margin expansion.
- PAT upgrades: PL revised FY26/FY27 PAT upward by 20.6%/12.7% respectively.
SAMHI Hotels is expected to benefit from multiple tailwinds, including rising discretionary travel, MICE (Meetings, Incentives, Conferences and Exhibitions) recovery, and increased domestic tourism spending.
Financials
| Metric | FY24 | FY25 | FY26E | FY27E |
|---|---|---|---|---|
| Revenue | 957.40 | 1,130.00 | 1,287.20 | 1,440.50 |
| EBITDA | 266.50 | 406.00 | 489.20 | 563.40 |
| EBITDA Margin % | 27.8 | 35.9 | 38.0 | 39.1 |
| PAT | (161.40) | 81.6 | 179.80 | 251.10 |
| EPS (INR) | (7.3) | 3.7 | 8.1 | 11.3 |
| Net Debt/Equity | 1.9x | 1.8x | 0.7x | 0.4x |
| EV/EBITDA (x) | 23.1 | 15.6 | 11.3 | 9.3 |
| P/E (x) | NA | 52.2 | 23.7 | 17.0 |
Note: Adjusted PAT for FY25 excludes exceptional items and tax writebacks, giving a cleaner picture of operating profit. FY26 and FY27 numbers factor in reduced interest costs and higher asset utilization.
Strategic Catalysts: What’s Driving the Optimism
🔹 1. Capital Infusion by GIC
- GIC’s backing brings not only capital but also credibility.
- INR 580 crore received (out of INR 750 crore total commitment) has reduced net debt to INR 1,429 crore.
- This has improved creditworthiness, lowered interest expenses, and positioned the company for cost-effective growth.
🔹 2. High-Quality Asset Pipeline
- 245 new keys will be added in FY26–FY27, expanding the portfolio in high-demand micro-markets.
- Key launches include the Hyderabad Hitec City property, estimated to contribute INR 100 crore annually.
- Westin & Tribute in Bangalore expected to generate INR 180–200 crore in incremental revenue.
🔹 3. Brand Upgrades and Yield Management
- Conversion of existing Four Points hotels in Pune and Jaipur to Courtyard by Marriott.
- Revenue per key expected to increase by 20–30% due to better positioning and pricing.
- Strategic focus on increasing ARR without sacrificing occupancy.
🔹 4. Margin Enhancements Across the Board
- SAMHI has improved asset-level margins to 42.9% in Q4FY25.
- ESOP costs are set to decline by 44%, improving net margins.
- Renovation of event spaces (ballrooms) will enhance high-margin F&B and banquet revenues.
🔹 5. Attractive Valuation Re-rating Potential
- SAMHI Hotels trades at a significant discount to its peers on an EV/EBITDA basis.
- With improving margins and lower leverage, re-rating toward peer multiple of 14–16x appears likely.
- PL’s revised target price of INR 313 reflects a 14x FY27E EBITDA multiple.
Where SAMHI Stands in the Industry Landscape
| Company | FY27E EV/EBITDA | FY27E EBITDA Margin | Debt/Equity |
|---|---|---|---|
| SAMHI Hotels | 9.3x | 39.1% | 0.4x |
| Chalet Hotels | 14.8x | 41.0% | 0.7x |
| Lemon Tree Hotels | 13.5x | 40.5% | 0.5x |
SAMHI’s path to margin parity is almost complete, and it’s on track to surpass peers in deleveraging. With a refined portfolio, disciplined capex, and rising free cash flows, SAMHI is becoming a solid challenger in the premium hotel segment.
Risks to Monitor
While the outlook is strong, some red flags warrant investor attention:
- Execution Delays: Hotel construction and renovation projects often face delays due to regulatory or logistical issues.
- Demand Volatility: Travel patterns are still stabilizing post-COVID; global or domestic disruptions could impact RevPAR.
- Inflationary Pressure: Wage inflation and energy costs can erode operating margins.
- Equity Dilution Risk: Any further equity raising to fund growth may dilute current shareholders unless timed post-re-rating.
- Brand Concentration: Heavy reliance on Marriott and Hyatt could limit flexibility if branding agreements change.
Final Word
With a clear pivot from survival to sustainable growth, SAMHI Hotels is transitioning into a platform-backed, asset-rich play on India’s travel and hospitality revival. The backing of GIC, consistent margin expansion, and brand-aligned property upgrades form the backbone of this transformation.
Brokerage houses are rightly identifying SAMHI as a potential compounder, especially as interest costs drop and FCF improves. While the market is only beginning to price in the turnaround, the next few quarters could prove pivotal. Those entering now may find themselves well-positioned for significant upside, both from earnings growth and valuation rerating.
As India’s hospitality cycle enters a golden phase post-pandemic, SAMHI might be one of the most underappreciated success stories — not for long.
📌 Key Takeaway Box: Why SAMHI?
- ✔️ 76% Upside Potential (Target INR 325 vs CMP INR 192)
- ✔️ GIC-backed JV Platform with Capital Visibility
- ✔️ Declining Interest Costs → PAT CAGR of 75% (FY25–27)
- ✔️ Operating Margin Expansion to 39.1%
- ✔️ New Room Additions Driving Double-Digit Revenue Growth
- ✔️ Undervalued vs Peers
- ✔️ Event-based F&B Revenue to Accelerate in FY26
- ✔️ Strong Execution Track Record Emerging