SAMHI Hotels Limited IPO

About the company:

SAMHI Hotels is a prominent branded hotel ownership and asset management platform in India, with India's third-largest inventory of operational keys (owned and leased) as of March 31, 2023 (Source: JLL Report). Within 12 years of starting the business operations, the firm has built a portfolio of 3,839 keys across 25 operating hotels in 12 of India’s key urban consumption centers as of March 31, 2023. Pursuant to the completion of the ACIC Acquisition on August 10, 2023, the portfolio has further increased to 4,801 keys across 31 operating hotels. The company is a large owner and asset manager of hotels across segments, brands and operators.
The firm acquires or builds primarily business hotels, and takes steps to further upgrade properties and engage with established branded hotel operators to allow the hotels to be appropriately positioned within the market. Subsequent to this one-time upgrade of the property, the company deploys in-house and proprietary asset management tools and capabilities to further enhance the ongoing financial and operational performance of the property.
The company currently categorizes the hotel portfolio into three distinct hotel segments based on brand classification – Upper Upscale and Upscale, Upper Mid-scale and Mid-scale. Over 51.14% of its Total Income for the FY23 was from Upper Mid-scale and Midscale hotels.
The hotels typically operate under long-term management contracts with established and well-recognized global hotel operators such as Marriott, Hyatt and IHG.
The company’s key strategies are focused on enhancing the profitability of the portfolio, deploying capital towards accretive growth projects and leveraging additional growth opportunities within the hospitality industry, utilizing depth of experience in the industry. The core strategies for future growth include
Position the hotels to benefit from favorable demand trends in the hospitality industry and enhance operating efficiencies
- Complete development of identified opportunities that are currently under development
- Integrate the ACIC Portfolio to drive enhanced performance
- Pursue growth opportunities via programmatic capital deployment and tactical mergers and acquisitions
- Ensure disciplined capital allocation and reduction of debt

Competitive Strengths

Ability to acquire dislocated hotels and demonstrated track record to re-rate hotel performance through renovation and/or rebranding

- Portfolio’s scale and diversification further enhanced by sector tailwinds
- Track record to manage hotels efficiently
- Ability to create operating efficiencies and long-term performance using analytics tools
- Strong governance and seasoned management team

Summary of Restated Consolidated Financial Information

Rs. In Crore

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