SAMHI Hotels Limited, an Indian branded hotel ownership and asset management platform, has announced its unaudited standalone and consolidated financial results for the quarter ended September 30, 2026, reporting strong revenue growth, improved occupancy, and higher profitability.
The company recorded same-store revenue growth of 12.6% year-on-year (YoY), exceeding its long-term guidance of 9–11%. Occupancy increased to 78.6% from 75% in Q2 FY26, while revenue per available room (RevPAR) grew 14.3%, supported by a 9.2% increase in average room rate (ARR).
Additionally, the conversion of incremental revenue into incremental EBITDA stood at approximately 57%. Domestic travellers accounted for around 80% of the total room nights sold during the quarter, providing a relatively resilient demand base amid geopolitical instability.
SAMHI Hotels reported total revenue growth of 15.6% YoY, while comparable EBITDA increased 21.3%, excluding the impact of the GST regulatory change, which was not applicable during the base period in Q2 FY26.
Consolidated EBITDA margin stood at 39.1% excluding the GST impact. However, the regulatory change resulted in a 300-basis-point margin dilution, bringing the reported margin to 36.1%. The company expects scope for improvement in subsequent periods, with a growing share of upscale inventory, which is not affected by the GST changes, potentially supporting operating margins of around 40%.
Profit before tax (PBT), excluding exceptional items, reached Rs. 53.4 crore, marking a reported YoY increase of 39.9%. Profit after tax (PAT), excluding exceptional items, stood at Rs. 37.2 crore, up 136.9% YoY. Reported PAT included exceptional gains of Rs. 3.9 crore in Q2 FY27 and Rs. 84.1 crore in Q2 FY26.
The company generated free cash flow of Rs. 82.7 crore during the quarter. Its effective interest rate stood at 7.8%, approximately 300 basis points lower than at the time of its IPO. Net debt-to-EBITDA was around 3.1x, or approximately 2.2x when calculated against operating assets.
Commenting on the performance, Ashish Jakhanwala, MD & CEO, SAMHI Hotels Ltd., said, “We are pleased to report our performance for the quarter. Occupancy held close to 80%, and RevPAR grew by about 14 percent, making this a reassuring period for the business. Revenue growth remained ahead of our long-term guidance. Domestic travellers accounted for about 80 percent of the room nights sold during the quarter. This cohort has proven more resilient amid ongoing geopolitical instability, reinforcing our confidence in the resilience of the Indian economy and the opportunity it represents.”
“Against this strong backdrop, we have been steadily building for the future. For several quarters, our reported growth has been largely driven by same-store performance, as no new inventory came online. This is set to change. We look forward to opening the W Hotel in Hyderabad next fiscal year and have secured a pipeline of approximately 1,700 new rooms through FY2031. These initiatives put us on a path to strong growth, and our focus now is on delivering them on schedule.”
“We are equally proud of having built this pipeline without compromising our discipline: we add assets only in core markets and at a discount to replacement cost. We are not buying growth through expensive acquisitions; instead, we are building it through the efforts that conversions and turnarounds demand, as demonstrated in Bangalore, and by securing long-term leases, as in Noida and Hyderabad.”
“Our modest investment in RARE, together with ongoing discussions on a partnership with Marriott, will help RARE build a strong platform in experience-led leisure across the region, with limited capital exposure.”
“We expect H2 FY27 to be operationally stronger. Going forward, incremental EBITDA is expected to translate into free cash flow, with interest outflows remaining stable. This should enable us to increasingly fund future growth investments through internal cash generation, supporting a disproportionate improvement in free cash flow generation.”
“We released our first Sustainability Report for FY2025-26, covering 31 hotels and 4,899 rooms across 11 states. The report highlights improvements in energy efficiency, waste reduction, and renewable energy usage. Building on our FY30 commitments, we will establish quantified targets across key sustainability parameters, with clear baselines to track and benchmark our progress.”
Meanwhile, SAMHI Hotels said its ongoing growth pipeline across its core portfolio, along with progress at RARE India, provides a strong foundation for future expansion. The company is also preparing to bring new inventory online, including the W Hotel in Hyderabad, scheduled to open in the next fiscal year. Its pipeline includes approximately 1,700 additional rooms through FY2031.
The company plans to maintain a disciplined approach to expansion by focusing on core markets and acquiring assets below replacement cost. Its growth strategy includes conversions, operational turnarounds, and long-term leases rather than relying on expensive acquisitions.
Furthermore, SAMHI Hotels expects its investment in RARE India and ongoing discussions around a potential partnership with Marriott to support the development of an experience-led leisure platform across the region while limiting capital exposure.
Looking ahead, the company expects stronger operational performance in the second half of FY27. It also anticipates that incremental EBITDA growth, coupled with stable interest outflows, will improve free cash flow generation and allow it to fund a larger share of future investments through internal accruals.
On the sustainability front, SAMHI Hotels released its first Sustainability Report for FY2025-26, covering 31 hotels and 4,899 rooms across 11 states. The report highlights progress in energy efficiency, waste reduction, and renewable energy consumption. The company plans to establish measurable targets across key sustainability parameters, supported by clear baselines to monitor progress towards its FY30 commitments.
