Samhi Hotels targets 1,647 premium rooms as debt falls and FY27-FY31 cash flow tops Rs 3,000 crore
Samhi Hotels reduced FY26 net debt by Rs 516 crore to Rs 1,450 crore, bringing net debt/EBITDA to 3.0x from 4.4x. It plans Rs 2,200 crore of development capex for 1,647 rooms, with the pipeline projected to add about Rs 1,000 crore in annual revenue by FY31.
What happened
Samhi Hotels cut FY26 net debt, improved cash generation and plans to deploy over Rs 3,000 crore of FY27-FY31 free cash flow into premium hotel expansion. Its
Key facts
- FY26 revenue: Rs 1,279 crore, up 12.3% YoY
- FY26 EBITDA: Rs 463 crore; margin: 36.2%
- FY26 free cash flow: Rs 300 crore
- FY26 net debt reduction: Rs 516 crore
- FY26 net debt: Rs 1,450 crore
- Net debt/EBITDA: 3.0x, versus 4.4x a year earlier
- Target net debt/EBITDA: 2.5x within 12-18 months
- FY27-FY31 projected free cash flow: over Rs 3,000 crore
- Development capex: Rs 2,200 crore for 1,647 rooms
- FY31 projected incremental annual revenue: about Rs 1,000 crore
- Operational rooms: 4,899; rooms under development: 1,669
- FY31 projected portfolio: 6,568 rooms
Why this matters
With a healthier balance sheet and a large premium-room buildout underway, Samhi is becoming a more credible partner for branded hotel conversions, development alliances and selective portfolio deals.
What to watch
- Quarterly net debt/EBITDA, interest coverage, refinancing terms, and whether net debt continues to decline despite development spending.
- Capex deployment versus the Rs 2,200 crore plan, project completion milestones, and any increase in expected construction cost per room.
- RevPAR growth, occupancy, average daily rate, and EBITDA margin trends relative to new room supply in Samhi's key cities.
- Evidence that the 1,647-room pipeline is contracted, permitted, funded, and opening on the stated FY27-FY31 timetable.
- Operating cash flow conversion and whether cumulative cash generation approaches the stated Rs 3,000 crore-plus target.
- Hotel demand indicators including corporate travel budgets, domestic tourism, inbound travel, airport traffic, and new competing premium inventory.
- Prioritize development in markets where branded premium-room supply remains constrained and demand is supported by airports, offices, convention activity, and domestic leisure travel.
- Use improved leverage metrics to refinance higher-cost debt, extend maturities, and preserve capital for projects with the strongest expected returns.
- Pursue operating partnerships, management contracts, or selective asset recycling to reduce the equity and debt intensity of the expansion plan.
- Increase focus on revenue-management systems, corporate accounts, and loyalty-channel penetration to protect occupancy and average daily rates as new rooms open.
- Potentially consider further acquisitions of underperforming branded or convertible hotel assets if valuation gaps emerge during the development cycle.