Samhi Hotels Limited · NSE:SAMHI
Samhi Hotels — Q2 FY24 Earnings Presentation
39 slides from Samhi Hotels's earnings presentation, Nov 8, 2023
Slide 1: Investor Presentation for Quarter 2 – FY24 (exchange cover letter)
November 08, 2023 SAMHI Hotels Ltd. (Formerly known as SAMHI Hotels Private Limited) BSE Limited National Stock Exchange of India CIN: U55101DL2010PLC211816 Corporate Relationship Department Limited Regd. Office: Caspia Hotels Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G Delhi, District Ce
Slide 2: SAMHI Hotels Ltd Investor Presentation – Q2FY24
SAMHI Hotels Ltd Investor Presentation – Q2FY24
Slide 3: Q2 FY24 Highlights
Q2 FY24 Highlights Demand remains to be strong with continued recovery in airline traffic and absorption of commercial office in key cities RevPAR Asset Income Our portfolio is well positioned in the right cities with +16.4% YoY +25.3% YoY strong brands and at different price points to benefit from
Slide 4: Macro Dynamics
Quarter ending September 30, 2023 Macro Dynamics Courtyard by Marriott Bengaluru ORR
Slide 5: Travel is recovering fast
Travel is recovering fast • Total airline traffic during Q2 FY24 has recovered to same levels as pre COVID (FY20); material headroom for growth • Core office markets driving airline passenger growth; Hyderabad, Pune and Bangalore materially higher than pre COVID QoQ airline passenger growth (in mn)
Slide 6: Office space expansion continues
Office space expansion continues Q2FY24: Key Indian cities absorbed Office space absorption Q2FY24 (mn sq. ft.) ~22.5mn sq. ft. of office space Hyderabad Bangalore SAMHI is well positioned with over 88% of our NCR operating rooms in these key markets Pune Mumbai Chennai Kolkata Ahmedabad - 1.0 2.0 3
Slide 7: We occupy large office markets across India with strong brands
We occupy large office markets across India with strong brands Total Rooms Operating Hotels / Rooms Office market size1 (mn sq. ft.) Marriott Hyatt IHG Operating U/D Current Upcoming Bengaluru 864 54 1/170 3/418 2/276 195 37 Mumbai 350 148 25 Delhi NCR 660 1/176 1/205 2/279 143 30 Hyderabad 824 1/27
Slide 8: Performance Summary
SAMHI Hotels Ltd. Performance Summary Renaissance Ahmedabad Holiday Inn Express Nashik
Slide 9: Q2 FY24: Performance snapshot
Q2 FY24 : Performance snapshot Proforma Including ACIC Portfolio Occupancy Average Room Rate RevPAR Asset Income 72.0% ₹5,441 ₹3,916 ₹2,450mn +103 bps YoY + 14.7% YoY + 16.4% YoY Asset Income Asset EBITDA Net Debt Asset EBITDA ₹2,211mn ₹811mn ₹18,377mn ₹859mn +25.3% YoY +29.8% YoY Notes: Includes im
Slide 10: Asset Income and EBITDA bridge
Asset Income and EBITDA bridge Asset Income (₹ mn) Asset EBITDA (₹ mn) +25.3% +29.8% YoY YoY +19.2% +14.6% YoY YoY Note: Includes impact of ACIC acquisition wef. August 11, 2023 9
Slide 11: RevPARs continue to grow strong
RevPARs continue to grow strong Strong performance aided by : 4,285 Operating parameters continue to track well. Q2FY24 RevPAR growth of 15% YoY +15% YoY Very low levels of new supply with healthy demand +14% from business travel to support growth in next few YoY 3,921 quarters 3,810 3,671 Downside
Slide 12: Insights
SAMHIIntel is our inhouse and proprietary asset management tool. It uses high frequency data to identify trends which have a potential impact on performance. Insights The tool also allows us to integrate new acquisitions and asset manage our hotels independent of the operator/brand. % Days with Occu
Slide 13: Segment Performance
SAMHI Hotels Ltd. Segment Performance Hyatt Place Gurgaon
Slide 14: Presence across demand segments
Presence across demand segments Upper Upscale & Upscale Upper Midscale Midscale Our strategy is to be in strong markets with large, fast growing office & airline demand, and then use our multi-branded approach to get share of customers at different price points/ segments
Slide 15: Upper Upscale & Upscale assets
Stable: Y-o-Y change of +/-200bps; Upper Upscale & Upscale assets Upward: Y-o-Y increase of between 200 – 700bps; Strong Upwards: Y-o-Y increase of more than 700bps; Downward: Y-o-Y decrease of between 200 – 700bps; and Strong Downwards: Y-o-Y decrease of more than 700bps. Q2FY24 (Y-o-Y) 6MFY24 (Y-o
Slide 16: Upper Mid-scale assets
Stable: Y-o-Y change of +/-200bps; Upper Mid-scale assets Upward: Y-o-Y increase of between 200 – 700bps; Strong Upwards: Y-o-Y increase of more than 700bps; Downward: Y-o-Y decrease of between 200 – 700bps; and Strong Downwards: Y-o-Y decrease of more than 700bps. Q2FY24 (Y-o-Y) 6MFY24 (Y-o-Y) FY23
Slide 17: Mid-scale assets
Stable: Y-o-Y change of +/-200bps; Mid-scale assets Upward: Y-o-Y increase of between 200 – 700bps; Strong Upwards: Y-o-Y increase of more than 700bps; Downward: Y-o-Y decrease of between 200 – 700bps; and Strong Downwards: Y-o-Y decrease of more than 700bps. Q2FY24 (Y-o-Y) 6MFY24 (Y-o-Y) FY23 11 ho
Slide 18: Strategic Initiatives
SAMHI Hotels Ltd. Strategic Initiatives Fairfield by Marriott Sriperumbadur
Slide 19: The road ahead
The road ahead • Leverage favorable market environment using the strength of our portfolio Operating • Improvement in market share of our hotels • Integration of ACIC portfolio to improve operating margins • Target Net Debt-to-EBIDTA of less than 3.5x by end of FY25 through further reduction of debt
Slide 20: Upcoming developments
Inventory expansion New Upcoming Development by end of FY28 (Capex ~₹2,600 – 3,000mn) developments Chennai – 86 Mumbai - 350 436 181 New Addition by end of FY25 (Capex ~₹500- 920 Renovation & rebranding of 600mn) Four Points by Sheraton Pune Pune – 16 Kolkata – 111 Reduction in debt / Renovation & r
Slide 21: Summary Financials
SAMHI Hotels Ltd. Summary Financials EQ IQ at Hyatt Regency Pune
Slide 22: Financial summary (Consolidated P&L)
Financial Q2FY24 Q2FY23 Change% H1FY24 H1FY23 Change% FY23 Operating Rooms (#) 4,801 4,050 4,801 4,050 3,839 Occupancy (%) 72% 71% 71% 72% 72% summary Average Room Rate (₹) Asset Income 5,441 2,211 4,743 1,764 25.3% 5,426 4,125 4,639 3,506 17.7% 5,069 7,499 (Consolidated P&L) Asset EBITDA Asset EBIT
Slide 23: Financial summary (Consolidated Balance Sheet)
Financial Sep’23 Mar’23 Notes summary Fixed Assets CWIP 26,180 208 19,089 202 Increase due to addition of the ACIC Portfolio Net Block (Consolidated Other Non-current Assets 5,118 507 Change primarily due to goodwill creation upon ACIC Acquisition Balance Sheet) Includes un-utilized cash from the IP
Slide 24: Operational efficiency
Operational Asset EBITDA Margin Profiles for Q2 FY24 ACIC Portfolio 32.3% efficiency Same Store 37.3% 17.2% 37% 9.7% Asset EBITDA Margin 20.1% 7.5% 5.1% 1.4% 2.3% Note: All values in ₹ mn unless specified otherwise 23
Slide 25: Financial flexibility
Financial flexibility Mar 31, 2023 Nov 04, 2023 Significant reduction in debt Net Debt (₹mn) 28,339 18,377 and increase in EBITDA will lead to free cash from operations. Consolidated EBITDA* (TTM) (₹mn) 3,273 3,397** This cash to be used for further reduction in debt, Net Debt : Consolidated EBITDA
Slide 26: Financial summary (Proforma P&L)
Financial Q2FY24 Q2FY23 Change% H1FY24 H1FY23 Change% FY23 Operating Rooms (#) 4,801 5,012 4,801 5,012 4,801 Occupancy (%) 73% 73% 72% 73% 73% summary Average Room Rate (₹) Asset Income 5,423 2,450 4,727 2,238 9.5% 5,376 4,859 4,622 4,423 9.9% 5,037 9,488 (Proforma P&L) Asset EBITDA Asset EBITDA Mar
Slide 27: About Us
SAMHI Hotels Ltd. About Us Holiday Inn Express Nashik
Slide 28: Diversified portfolio across India focused on large office markets
Diversified portfolio across India…focused on large office markets #Rooms / % Upscale & Upscale 1,074 Upper 22% Hyatt Regency on Nagar Road Sheraton, Hyderabad Renaissance, Ahmedabad Courtyard, Bangalore (ORR) Hyatt Place in Udyog Vihar, Gurugram Upper Mid-scale Fairfield, Four Points, Vizag Fairfie
Slide 29: Acquisition & turn-around a key strength
Acquisition & turn-around 4,136 of our total 4,801 a key strength… operating rooms have been added through acquisition led strategy with a demonstrated track record of Pre-renovation Current & Rebranding Performance performance rerating Sheraton Hyderabad Q4 FY14 Q4 FY23 Rooms # 158 272 5.8x / 21% C
Slide 30: …gives us competitive advantage
…gives us competitive advantage Operating Rooms Growth SAMHI (Organic) SAMHI (Inorganic) ACIC Portfolio Avg. 369 rooms added per 4,801 year since inception1 4,050 962 3,385 3,174 1,460 948 252 0 512 665 665 252 Year of 31-Mar-11 Inception 31-Mar-14 31-Mar-17 31-Mar-20 31-Mar-23 1 - By number of room
Slide 31: We leverage power of strong hotel brands in India
We leverage power of strong hotel brands in India SAMHI1 has over 43% share of all Fairfield by Marriott and 71% of Holiday Inn Express – two strong global brands in the midscale segment2 43% While we outsource day to day operations of our hotels to hotel operators, we control all material aspects:
Slide 32: Track record
Consol. Total Income Acquisition of ACIC Portfolio (6 operating Track Consol. EBITDA hotels + 1 u/d hotel) 9,644 record Renovation & rebranding of 14 hotels (4 Fairfield Hotels + 10 Holiday Inn COVID-19 Express Hotels) of execution and Acquisition of a portfolio of 4 operating delivering growth & 1
Slide 33: ACIC Portfolio acquisition
ACIC Portfolio acquisition A portfolio of 6 operating assets with 962 rooms acquired in Aug’23 Additional real-estate in Navi Mumbai with potential 350 room hotel development Opportunity of revenue growth & margin expansion by integrating with existing portfolio 32
Slide 34: ACIC Portfolio
ACIC Portfolio Continued growth & improve our market share • Acquisition completed on August 10, 2023; full reporting of portfolio as part of SAMHI from Q3FY24 • We will disclose ‘pro-forma’ performance for certain headline numbers assuming ACIC portfolio has been fully acquired for full year period
Slide 35: Experienced and professional team
Experienced and professional team Sanjay Jain Gyana Das Ashish Jakhanwala Rajat Mehra Senior Director, Corporate Tanya Chakravarty EVP & Head of Chairman, MD & CEO CFO Affairs, Company Secretary General Counsel and Compliance Officer Investments ▪ Experience across ▪ Previously worked ▪ Previously w
Slide 36: Headed by a professional Board with strong corporate experience
Headed by a professional Board with strong corporate experience… Ashish Manav Thadani Michael Peter Aditya Jain Michael David Ajish Abraham Archana Capoor Krishan Dhawan Jakhanwala Non-Executive & Schulhof Independent Holland Jacob Independent Independent Chairman, Non- Non-Executive & Director Inde
Slide 37: Glossary
Operating Glossary # Hotel Brand City Location Operator Segment Rooms 1 Hyatt RegencyTM Pune Nagar Road Hyatt Upper Upscale 301 2 Renaissance Ahmedabad SG Highway Marriott Upper Upscale 155 3 Sheraton Hyderabad Gachibowli Marriott Upscale 272 4 Courtyard by Marriott Bangalore Outer Ring Road Marriot
Slide 38: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by SAMHI Hotels Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securitie
Slide 39: Thank You
Thank You Company SAMHI Hotels Ltd. CIN: U55101DL2010PLC211816 Mr. Gyana Das Executive Vice President & Head of Investments compliance@samhi.co.in www.samhi.co.in Investor Relations Advisors Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285 Ms. Ami Parekh / Mr. Rahul Agarwal +91-8082466