Samhi Hotels Limited · NSE:SAMHI
Samhi Hotels — Q1 FY2024 Earnings Presentation
32 slides from Samhi Hotels's earnings presentation, Oct 11, 2023
Slide 1: Investor Presentation for Quarter 1 – FY 24 cover letter
October 11, 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 Cen
Slide 2: SAMHI Hotels Ltd Investor Presentation - Q1FY24
SAMHI Hotels Ltd Investor Presentation - Q1FY24
Slide 3: Q1 FY2024 message from Chairman & Managing Director
On 22nd September 2023, SAMHI Hotels Ltd. made its debut on NSE and BSE. It is a proud achievement for us to create a formidable hotel company in India within a period of 12 years. Q1 FY2024 We are also pleased to report our Q1FY24 performance (growth on a same-store basis): • Our RevPAR grew by 14.
Slide 4: SAMHI Hotels - One of India's leading hospitality company
SAMHI Hotels - One of India’s leading hospitality company 31 • SAMHI is one of India’s largest hotel owner and asset manager Operating Hotels • Presence in key micro-markets within metros & across segments (different price points) 4,801 Operating Rooms • Partner with recognized hotel brands though l
Slide 5: 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 6: Our business model
Our business model 1 Acquisition & turnaround led growth 2 Leverage power of strong hotel brands 3 Presence in high density business locations 4 Proprietary tools to drive performance Fairfield Chennai Sriperumbadur 5
Slide 7: 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 8: …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 9: 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 10: Presence in large office markets across India with strong brands
Presence in large office markets across India with strong brands Total Rooms Operating Hotels / Rooms Office market size1 (mn sft) 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 1/272
Slide 11: Well positioned at different price points
Well positioned at different price points 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 % Show Segments Asset Income Share in Q1 FY241 Upper Upscale & Upscale Upper
Slide 12: 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 13: ACIC Portfolio acquisition
ACIC Portfolio acquisition A portfolio of 6 operating assets with 962 rooms acquired in August’23 Additional real-estate in Navi Mumbai with potential 350 room hotel development Opportunity of revenue growth & margin expansion by integrating with existing portfolio 12
Slide 14: 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 15: Strong embedded growth
Strong embedded growth New Development by end of FY28 (Capex ~₹2,600 – 3,000mn) New Addition Renovation by end of FY25 and/or rebranding (Capex ~₹500-600mn) 436 We have opportunity to renovate and/or rebranding 920 of the (Capex ~₹850 -1,150mn) 181 Chennai – 86 existing 4,801 rooms in our portfolio
Slide 16: 920 rooms Renovation & Rebranding
Renovation & Rebranding (# Operating rooms) Expansion / additions Renovation / rebranding ACIC Portfolio (operating) 617 962 920 745 920rooms 4,050 3,839 3,136 To Undergo Renovation & Rebranding 1,460 252 0 31-Mar-11 31-Mar-14 31-Mar-17 31-Mar-20 31-Mar-23 Growth Asset Rooms Plan Current Status Prog
Slide 17: 617 rooms Inventory Addition
Inventory Addition (# Operating rooms) Expansion / additions Renovation / rebranding ACIC Portfolio (operating) 617 962 920 745 617rooms 4,050 3,839 3,136 To be added during FY25 - FY28 1,460 252 0 31-Mar-11 31-Mar-14 31-Mar-17 31-Mar-20 31-Mar-23 Growth Asset Rooms Plan Current Status Progress Targ
Slide 18: 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 19: Management
SAMHI Hotels Ltd. Management Hyatt Place Gurgaon
Slide 20: 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 21: 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 22: Performance Summary
Quarter ending June 30, 2023 Performance Summary Courtyard by Marriott Bengaluru ORR
Slide 23: Q1 FY2024 : Performance snapshot
Q1 FY2024 : Performance snapshot Proforma Including ACIC Portfolio Occupancy Average Room Rate RevPAR Asset Income 70.5% ₹5,408 ₹3,810 ₹2,410mn (218) bps YoY + 17.7% YoY + 14.2% YoY Asset Income Asset EBITDA Net Debt Asset EBITDA ₹1,914mn ₹719mn ₹18,331mn ₹885mn +14.2% YoY +12.5% YoY Note: All figur
Slide 24: RevPARs continue to grow strong
RevPARs continue to grow strong 4,285 +15% +14% YoY • Operating parameters continue to track well. YoY Q2FY24 RevPAR growth of 15% YoY 3,912 3,810 • Very low levels of new supply with healthy demand from business travel to support growth in next few 3,671 quarters 3,402 3,337 Q1 FY23 Q2 FY23 Q3 FY23
Slide 25: Segment performance
Segment performance Stable: Y-o-Y change of +/-200bps; Upward: Y-o-Y increase of between 200 – 700bps; Strong Upwards: Y-o-Y increase of more than 700bps; Upper Upscale & Upper Downward: Y-o-Y decrease of between 200 – 700bps; and Mid-scale Strong Downwards: Y-o-Y decrease of more than 700bps. Upsca
Slide 26: Operational efficiency
Operational efficiency Excluding ACIC Portfolio EBITDA Margin Excluding 16.6% ACIC Portfolio 38% 9.2% 38% ACIC Portfolio 34% Asset EBITDA Margin 19.9% 7.8% 4.5% 1.3% 3.0% ACIC Portfolio integration to SAMHI’s existing assets to allow improvement in operating margins Note: All values in ₹ mn unless s
Slide 27: Financial summary
Financial Consolidated P&L Snapshot Proforma (With ACIC Portfolio) Q1FY24 Q1FY23 Change% FY23 Q1FY24 Q1FY23 Change FY23 Operating Rooms 3,839 4,050 3,839 4,801 5,012 4,801 summary Occupancy % Average Room Rate (₹) Asset Income 71% 5,408 1,914 73% 4,594 1,742 14.2% 72% 5,133 7,498 72% 5,327 2,410 74%
Slide 28: Significant reduction in debt
Significant reduction in debt 28,339 ₹12,000mn of IPO proceeds materially reduced Company’s net debt and cost of debt Net debt Net debt down by ~35% to ₹18,331mn from reduction from ₹28,339mn IPO proceeds Cost of debt reduced from ~12.5% to ~10.6%; further reduction estimated by end FY24 18,331 * By
Slide 29: Post ₹12,000mn IPO Primary: path to profitability & free cash
Path to profitability & free cash Change in Estimated Finance Cost post Debt Reduction 1,447 1,421 1,409 1,409 Avg. Quarterly Finance Cost of ₹1,368mn pre-IPO 1,155 Key Drivers for Change • Revenue growth driven by robust demand Post ₹12,000mn IPO Primary across hospitality, office-space and aviatio
Slide 30: 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 31: 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 32: 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