Samhi Hotels Limited · NSE:SAMHI
Samhi Hotels — Q4 FY24 Earnings Presentation
40 slides from Samhi Hotels's earnings presentation, May 29, 2024
Slide 1: Investor Presentation for Quarter 4 FY24
IMART HOTEL INVESTMENTS — 29% May 2024 SAMHI Hotels Ltd. BSE Limited National Stock Exchange of Corporate Relationship Department India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G Dalal Street, Mumbai 400 001 Bandra Kurla Complex, Maharashtra, India Bandra (East) Scrip Code: 54398
Slide 2: SAMHI Hotels Ltd
oQo MART HOTEL INVESTMENT. SAMHI Hotels Ltd © = o o 4 Lo Vl QY 4 s} +— ) > ) n O — — ) n ] (@ Q] (@ |
Slide 3: SAMHI Hotels - one of India's leading hospitality company
SAMHI Hotels - one of India’s leading hospitality company SAMHI is one of India’s largest hotel owner and asset manager ¢ Presence in key micro-markets within metros & across segments with strong global brands « Growth driven by an acquisition & turn-around led strategy (37% 10-year Revenue CAGR) «
Slide 4: Portfolio snapshot
SAMHI —SMART HOTEL INVESTMENTS— Portfolio snapshot #Rooms /% Upscale & Upscale Upper ~ Rl she:aton, Hyderabad outtjard, Bangalore (ORR) Hyatt PladeUlloe Vihar, Gurugram Delhi Gurugra ) ter NOIDA Jaipur o © Ahmedabad g = = o Kolkata ga 7 Nashik 5 Mumgal Bz Vishakhapatnam o Hyderabad ” Goa ) Bengaluru
Slide 5: Portfolio of strong brands across price point
Portfolio of strong brands across price point COURTYARD Fairfield rouR Global R O brands HY HYATT RENAISSANCE® Bergaluru v ”Mkmz REGENCY AWMEDABAD HOTEL Outer Ring Road Pt Upper Upscale / Upscale Upper Mid-scale Mid-scale 5 hotels 1,074 rooms 15 hotels 2,163 rooms 1 hotels 1,564 rooms Individually s
Slide 6: FY24 A Year of Transformation
FY24 A Year of Transformation Total Income : ~X10.5bn; EBITDA ~X3.7bn! Strong operational performance: 17% full year RevPARZ growth Material reduction in debt/ finance cost Successful capital raise through IPO Established path to investable surplus and PAT ~ achieved I2bn annualized run rate of free
Slide 7: Financial summary
Financial summary Q4-FY24 FY24 FY24 % chg. vear o year (Y0Y) ACIC consolidated w.e.f. Aug’23 1 34,830 ] 4,123 ] RevPAR +169% +17.0% 32,899mMn 39,787mn Strong ' Total Income ’ . ’ ., <10,527mn 9 base of P performance for FY25 | *+36.9% S les SAMH| is set for a strong performance in FY25 ] driven by c
Slide 8: FY14 - FY24: Marathon run at pace of a sprint
FY14 - FY24 : Marathon run at pace of a sprint 10,527mn ACIC full year Inventory growth of ~450 rooms per year Revenue CAGR of 37% EBITDA CAGR of 45% i m.m,- . I .I o@e 7
Slide 9: Strong base for growth
Strong base for growth @ Reduced leverage Net Debt : EBITDA reduced from 87x in Mar'23 to 4.9x in Mar'24 Growth in EBITDA & repayment of debt to further reduce leverage ratio to ~3.0x Free cash from operations gives us flexibility Based on current run-rate, SAMHI to generate about I2,250-2,500mn fre
Slide 10: Macro Dynamics
SAMHI Hotels Ltd. Macro Dynamics
Slide 11: Focus on key demand drivers
Focus on key demand drivers A B Air Established Commercial Passengers Hospitality Office Space Market Cities with large volume of air Established organized hospitality Primary catalyst for business travel and passengers, a key demand driver for markets provide resilience against new related socio-ec
Slide 12: Robust commercial activity across key markets
Robust commercial activity across key markets Office market size' (mn sq. ft.) FY24 Net Absorption? . Total of m Current Upcoming ~43 mn sqft 4 Key Markets (Bangalore, Bangaiore [N = 140 Hyderabad, Pune, Delhi NCR) S . e captured ~~ 75%0, of the total absorption Pune _ 21 54 Contribute to 75% of e S
Slide 13: Continued travel recovery
Continued travel recovery ~270 million passengersin FY24! Core office markets driving airline passenger growth; Pune, Bangalore, and Hyderabad materially higher than pre COVID Q4FY24 -Tst quarter to breach pre-COVID high With all major airports undergoing expansion and construction of new airports,
Slide 14: SAMHI portfolio - in right markets
SAMHI portfolio - in right markets » Our two bets about business travel — (i) growth of office space & (ii) airline, have played out well * We continue to look for opportunities to have a larger market share of these cities Last 10yrs Air Passenger Growth CAGR! Office space (sq.ft.) per guest room?
Slide 15: Summary
SAMHI Hotels Ltd. r_m al o = © C O Q Summary
Slide 16: Sources of revenues
Sources of revenues Room Revenue Split (FY24) -~ Long stay, 2% |g Crew, 3% Asset Income Split (FY24) Groups/MICE, 12% Others, 3 Non-negotiated/ un- qualified, 51% F&B, 26% We maintain a room focused business, which Negotiated/contract, in our opinion will allow 32% more stable future income and pred
Slide 17: RevPARs continue upward trend
RevPARs continue upward trend +17% YOY e ( or Q i OY) R Segment (Q4 FY24) Upper & Upscale i oo Mid-scale 8% 4,132 +15% YoY YoY . 3,662 3,530 3,196 s ReVPARs are expected to maintain upward trend driven by continued office space absorption and growth in air Ql FY23 Q2 FY23 Q3 FY23 Q4FY23 QIFY24 Q2FY2
Slide 18: City Wise RevPAR
City Wise FY23 wmFY24 ReV pA R +22% +12% 5140 5120 4,584 +24% 4224 4264 +17% 4,087 +31% 3,765 Driven by fast 3,489 +14% 3,450 growing 3316 +6% 3,067 commercial office 2878 2,908 2,903 market, we expect large cities to drive RevPAR growth in India Hyderabad Bangalore Delhi NCR Pune Chennai Ahmedabad
Slide 19: Q4FY24 - Total Income and Consol. EBITDA bridge
Q4FY24 - Total Income and Consol. EBIT DA bridge Total Income zmn) Consol. EBITDA (pre-£s0p) (2 mn) + 35.669 +36.9% Voy. +45 4% < 86 +35 7% +11.1% 543 +192% YoY YoY 227 (35) 154 (1 2,899 1,077, 2,078 800 Q4 FY23 Sold Growth in Addition of Q4 FY24 Corporate Q4 Fy24 Q4 FY23 Sold Growth in Addition of
Slide 20: FY24 - Total Income and Consol. EBITDA bridge
FY24 - Total Income and Consol. EBITDA bridge Total Income zmn) Consol. EBITDA (pre-es0p) = mn) +28.4% +28.5% +34.6% YoY Yoy +32.4% YoY 157 +19.8% (293) YovY +14.3% YovY 488 YoY . ,037 544 (245) (61) 9,787 3,777 3,484 7,499 2,805 Fy23 Sold Growth in Addition of Fy24 Corporate Fy24 Fy23 Sold Growth i
Slide 21: Operational efficiency
Q4FY24 Operational (435) efficiency 15.5% (246) 8.8% 571) We are making good progress integrating ACIC portfolio with our existing Marriott operated hotels. We expect to complete this in the next two quarters. 20.3% 41% (165) Asset EBITDA 37% Consol. >9% (141) Margin EBITDA 5.0% 37 Improving Margins
Slide 22: SAMHIntel
[em— SAMHI=/ SAMHilntel is our inhouse and proprietary asset management tool. It provide valued insights to our business. We are certain that as we collect more data from our hotels, this would allow to add more value to our business. Weekdays have reached ~77% Demand is spreading to more Days with
Slide 23: Segment Performance
SAMHI Hotels Ltd. Segment Performance
Slide 24: Upper Upscale & Upscale assets
== Stab /e A Upw a Upper Upscale & Upscale assets & Strong Upwards: Q4FY24 (Y-0-Y) FY24 (Y-0-Y) FY23 5 hotels 1,074 rooms in key metros Occupancy (%) 78% A 74% o 71% - 22% of total room inventory ARR () 10,076 5 8954 5 7,643 ‘ 43% of Asset Revenues for Q4FY24 RevPAR ) 7,909 5 6,648 5 5,456 . 31% rev
Slide 25: Upper Mid-scale assets
== Stabl ge of +/-200bps, A Upwa Upper Mid-scale assets 3e Strong Upward: Q4FV24 (Y-0-Y) FY24 (Y-0-Y) Fv23 15 hotels 2,163 rooms in 10 cities Occupancy (%) 73% — 72% w 75% 45% of total room inventory ARR () 6,058 5 5580 5 4498 42% of Asset Revenues for Q4FY24 RevPAR ) 4,438 5 4,026 5 3,351 . 23% rev
Slide 26: Mid-scale assets
== Stabl ge of +/-200bps, A Upwa Mid-scale assets § Strong Upward: Q4FY24 (Y-0-Y) FY24 (Y-0-Y) FY23 11 hotels 1,564 rooms in 7 cities Occupancy (%) 79% a 72% - 69% . 33% of total room inventory ARR () 3758 5 3523 5 3210 ’ 15% of Asset Revenues for Q4FY24 RevPAR ) 2967 V'S 2533 5 2226 ' 9% revenue fr
Slide 27: Growth Drivers
SAMHI Hotels Ltd. Growth Drivers
Slide 28: Upcoming developments
Upcoming developments Renovation & rebranding of Four Points by Sheraton Pune Reduction in debt / Renovation & rebranding of finance cost Hyatt Regency Pune Opening Soon Acquisition of ACIC Opening of Holiday Inn ¢, Opening of additional rooms in Fairfield Portfolio Chennai Sriperumbudur Express Kol
Slide 29: Significant Upside
Total Inventory of Significant 5,418 Rooms by FY28 Upside New inventory, 1% « « Significant capex already invested in these assets Inventory addition starting H2FY25 till FY28 Rooms. Revenue/ EBITDA 617 Nil « Evaluating capital efficient long-term leases in key markets for future expansions « In pro
Slide 30: Opening soon
Opening soon : 302 rooms, one new market by Q3 FY25, revenue potential of R250-300mn Holiday Inn Express Whitefield Holiday Inn Express Kolkata Holiday Inn Express Greater NOIDA Extension: 54 Guestrooms 111 Guestrooms 137 Guestrooms
Slide 31: Summary Financials
SAMHI Hotels Ltd. Summary Financials
Slide 32: Financial summary (Consolidated P&L)
Proforma basis’ Q4FY23 Ls Financial Change% FY24 Change% Operating Rooms (#) 4,050 4,6641 Occupancy (%) 74% 73% summary Average Room Rate () Asset Income 5570 2,078 35.4% 9,630 28.4% 5669 10,364 Asset EBITDA 800 45.4% 3,777 34.6% 3,991 (Consolidated P&L) EBITDA Margin 38.5% 38.5% Other Income n7 Cor
Slide 33: Financial Summary (Consolidated Balance Sheet)
Fi n a n Ci a | Mar'24 Mar23 Notes Fixed Assets 24,977 19,089 Increase due to addition of the ACIC Portfolio Net Block Sul l ll l lary cwip 325 202 (CO Nnso | | d a ted Other Non-current Assets 5213 507 Change primarily due to goodwill creation upon ACIC acquisition to I4,461mn Balance Sheet) Cash &
Slide 34: Financial flexibility
Financial Mar 31, Jun 30, Sept 30, Dec 31, Mar 31, flexibility 2023 2023 2023 2023 2024 Net Debt (X mn) 28,339 29,383 17974 18,427 18,242 TTM EBITDA* z mn) S273 BEEY 3,398 3,580 3,681 Net Debt : EBITDA 9.8%' Net Debt : EBITDA =@=Interest Rate Annualized interest cost ~Z7/500) ~3,940 ~2,400 ~2,000 ~1
Slide 35: Management
SAMHI Hotels Ltd. Management
Slide 36: Experienced and professional team
Experienced and professional team Sanjay Jain Gyana Das Ashish Jakhanwala Rajat Mehra Senior Director, Corporate Tanya Chakravarty Chairman, MD & CEO Affairs, Company Secretary EVP & Head of CFO Investments General Counsel and Compliance Officer = Experienceacross Previously worked = Previously work
Slide 37: Headed by a professional Board with strong corporate experience
Headed by a professional Board with strong corporate experience... 2 Independent Directors Ashish Jakhanwala Manav Thadani Non-Executive & Michael Peter Schulhof Ajish Abraham Jacob Michael David Holland Aditya Jain Independent e Archana Capoor Independent Krishan Dhawan Independent Chairman, Non- N
Slide 38: Glossary
city Operator Segment Operating Category Glossary g # Hotel Brand Location Rooms Pune Nagar Road Hyatt Upper Upscale 301 Rebranding 2 Renaissance Ahmedabad SG Highway Marriott Upper Upscale 155 Same Store 3 Sheraton Hyderabad Gachibowli Marriott Upscale Same Store 4 Courtyard by Marriott Bangalore O
Slide 39: 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 40: Thank You
Thank You Company SAMHI Hotels Ltd. A S CIN: USSI01DL2010PLC211816 =\ - BB Mr. Gyana Das B EA S Executive Vice President & Head of Investments IEEEEDORE =0 AN E a's " — | I L Investor Relations Advisors Strategic Growth Advisors Pvt. Ltd. 1A CIN: U74140MH2010PTC204285 Ms. Ami Parekh / Mr. Rahul Agar