Q1 2027 Samhi Hotels Ltd Earnings Call

August 4, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Q1 FY27 earnings conference call of Samhi Hotels Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call.

Operator: Ladies and gentlemen, good day and welcome to the Q1 FY27 earnings conference call of SAMHI Hotels Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashish Jakhanwala, MD & CEO of SAMHI Hotels Limited. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day and Welcome to the Q1 FY2027 earnings conference call of SAMHI Hotels Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashish Jakhanwala, MD & CEO of SAMHI Hotels Limited. Thank you, and over to you, sir.

Speaker #1: These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: Ayana, I'll hand the conference over to Mr. Ashish Chankalwal, MD and CEO of Samhi Hotels Limited. Thank you, and over to you, sir.

Speaker #2: Good morning, everyone, and welcome to the Samhi Hotels Q1 Financial Year 2027 earnings call. Thank you for taking the time to join us today. I am joined by our CFO, Rajat Mehta; our EVP and Head of Investments, Gyanadas; and Nakul, our CP of Investments.

Ashish Jakhanwala: Good morning, everyone, and welcome to SAMHI Hotels Q1 FY27 earnings call. Thank you for taking the time to join us today. I am joined by our CFO, Rajat Mehra, our EVP and Head of Investments, Gyana Das, and Nakul, our CDP of Investments. Our investor relation partners, Strategic Growth Advisors, are also on the call. We have uploaded our Q1 FY27 financial results, investor presentation, and the Excel sheet on the exchanges and on the website, and I hope everyone's had a chance to go through them. Before I get into specific company-level details, let me spend a moment on the environment we operated in this quarter, because it speaks directly to why we've built the SAMHI we have.

Ashish Jakhanwala: Good morning, everyone, and Welcome to SAMHI Hotels Q1 FY2027 earnings call. Thank you for taking the time to join us today. I am joined by our CFO, Rajat Mehra, our EVP and Head of Investments, Gyana Das, and Nakul, our CDP of Investments. Our investor relation partners, Strategic Growth Advisors, are also on the call. We have uploaded our Q1 FY2027 financial results, investor presentation, and the Excel sheet on the exchanges and on the website, and I hope everyone's had a chance to go through them. Before I get into specific company-level details, let me spend a moment on the environment we operated in this quarter, because it speaks directly to why we've built the SAMHI we have.

Speaker #2: Our investor relations partners, Strategic Growth Advisors, are also on the call. We have uploaded our Q1 FY27 financial results, investor presentation, and the Excel sheet on the exchanges and on the website.

Speaker #2: And I hope everyone's had a chance to go through them. Before I get into specific company-level details, let me spend a moment on the environment we operated in this quarter.

Speaker #2: Because it speaks directly to why we've built Samhi the way we have. We are firm believers in, and investors in, the urbanization story of India, and we have deliberately built a portfolio in some of the most dense office markets in the country.

Ashish Jakhanwala: We are a firm believer in and investor in the urbanization story of India, and we have deliberately built a portfolio in some of the most dense office markets in the country. That thesis held up well in Q1. Net office absorption across our core markets was approximately 11 million square feet during the quarter, on top of approximately 58 million square feet for the whole FY26. Leasing momentum, especially on global capability centers, remains strong with Bangalore, Hyderabad, and Pune together accounting for more than 65% of the quarter leasing activity. On aviation, passenger traffic did dip early in the quarter as the geopolitical situation escalated, and more so because of the limitations of the Gulf carriers. The latter half of the quarter saw a clear recovery. Q1 FY27 passenger traffic came in essentially flat year-on-year for the quarter as a whole.

Ashish Jakhanwala: We are a firm believer in and investor in the urbanization story of India, and we have deliberately built a portfolio in some of the most dense office markets in the country. That thesis held up well in Q1. Net office absorption across our core markets was approximately 11 million square feet during the quarter, on top of approximately 58 million square feet for the whole FY2026. Leasing momentum, especially on global capability centers, remains strong with Bangalore, Hyderabad, and Pune together accounting for more than 65% of the quarter leasing activity. On aviation, passenger traffic did dip early in the quarter as the geopolitical situation escalated, and more so because of the limitations of the Gulf carriers. The latter half of the quarter saw a clear recovery. Q1 FY2027 passenger traffic came in essentially flat year-on-year for the quarter as a whole.

Speaker #2: That thesis held up well in Q1. Net office absorption across our core markets was approximately 11 million square feet during the quarter, on top of approximately 58 million square feet for the whole financial year '26. Leasing momentum, specifically in global capability centers, remains strong, with Bangalore, Hyderabad, and Pune together accounting for more than 65% of the quarter's leasing activity.

Speaker #2: On aviation, passenger traffic did dip early in the quarter as the geopolitical situation escalated, and more so because of the limitations of the Gulf carriers. However, the latter half of the quarter saw a clear recovery, and Q1 FY27 passenger traffic came in essentially flat year on year.

Speaker #2: For the quarter as a whole, it's a good illustration of how quickly underlying travel demand in our markets reasserts itself once a disruption passes. Against that backdrop, our own operating metrics were strong.

Ashish Jakhanwala: A good illustration of how quickly underlying travel demand in our markets reasserts itself once a disruption passes. Against that backdrop, our own operating metrics were strong. Same-store RevPAR grew 9.6% year-on-year to approximately INR 5,220, with portfolio occupancy at 79.3%, which was up from 74.2% in the year-ago quarter. Domestic travelers now make up 82% of the room nights we sold, up from 78% a year ago. This more resilient domestic cohort is precisely what insulated our top line from the disruptions to international arrivals that we saw through the quarter. Encouragingly, 36% of the days in the quarter saw occupancy in excess of 90%, which tells us underlying demand compression is intact even with softer international business. Let me now hand over to Rajat to take you through the quarter financial performance in detail, and I'll come back to you to talk through our growth pipeline.

Speaker #2: Same store ref bar grew 9.6% year on year to approximately 5,220 rupees, with portfolio occupancy at 79.3%, which was up from 74.2% in the year ago quarter.

Speaker #2: Domestic travelers now make up 82% of the room nights we sold, up from 78% a year ago. This more resilient domestic cohort is precisely what insulated our top line from the disruptions to international arrivals that we saw through the quarter.

Speaker #2: Encouragingly, 36% of the days in the quarter saw occupancy in excess of 90%, which tells us underlying demand compression is intact—even with softer international business.

Speaker #2: Let me now hand over to Rajat to take you through the quarter's financial performance in detail, and I'll come back to talk through our growth pipeline.

Speaker #2: Over to you, Rajat.

Speaker #3: Thank you, Ashish. Good morning, everybody. Let me start with three items that bridge our reported performance for the quarter to comparable performance, as that truly demonstrates the health of the business and gives a clearer guidance on the way forward.

Ashish Jakhanwala: Over to you, Rajat.

Rajat Mehra: Thank you, Ashish. Good morning, everybody. Let me start with the three items that bridge our reported performance for the quarter to comparable performance, as that truly demonstrates the health of the business and gives a clearer guidance on the way forward. Total income for Q1 FY27 was INR 308.3 crores, which was on a reported basis up 7.3% on a year-on-year basis. However, there is approximately INR 9.3 crores of one-time other income that was included in our Q1 FY26 base relating to a subsidiary capital restructuring as a part of the GIC transaction. Therefore, on a comparable revenue growth basis, we were up 10.8%. This include same-store growth of approximately 9.1%, and the balance came from the new opening last year. Similarly, Q1 FY26 base also included approximately INR 2.1 crores as a one-time expense related to the GIC transaction, which reduced the reported EBITDA for that quarter.

Speaker #3: Total income for Q1 FY27 was rupees 308.3 crores, which was on a reported basis up 7.3% on a year-on-year basis. However, there is approximately 9.3 crores of one-time other income that was included in our Q1 FY26 base, leading to a subsidy capital restructuring as a part of the GIC transaction.

Speaker #3: Therefore, on a comparable revenue growth basis, we were up 10.8%. This includes same-store growth of approximately 9.1%, and the balance came from the new openings last year.

Speaker #3: Similarly, the Q1 FY26 base also included approximately ₹2.1 crore as a one-time expense related to the GIC transaction, which reduced the reported EBITDA for that quarter.

Speaker #3: Operating expenses in Q1 FY26 include an approximate impact of ₹9.2 crore from the change in the GST regime, from 12% with input tax credit to 5% without input tax credit.

Rajat Mehra: Operating expenses in Q1 FY26 include an approximate impact of INR 9.2 crores from the change in the GST regime from 12% with the input tax credit to 5% without the input tax credit. This impact is in the current year and is not a base period adjustment. While we reported our EBITDA, which was lower by 4% on a year-on-year basis, the same on a comparable basis was healthy at about 12.1%. Finance costs for the quarter declined by 12.5% on a year-on-year basis.

Speaker #3: This impact is in the current year and is not a base period adjustment. Therefore, while we reported an EBITDA which was lower by 4% on a year-on-year basis, the same on a comparable basis was held at about 12.1%.

Speaker #3: Finance cost, for the quarter declined by 12.5% on a year-on-year basis, sorry, 25.5% on a year-on-year basis, to 37.7 crores, resulting in a PBT of 32.7 crores up by 26.4% over the same period last year.

Ashish Jakhanwala: 25.

Rajat Mehra: 25.5% on a year-on-year basis to INR 37.7 crores, resulting in an PBT of INR 32.7 crores, up by 26.4% over the same period last year. Net debt as on 30 June 2026 was approximately INR 1,490 crores. Our net debt to EBITDA stood at approximately 3.2x on a trailing 12-month basis and approximately 2.4x for operating assets, excluding the capital deployed towards growth. Our effective interest rate is at 7.8%, approximately 300 basis lower than that at the time of our IPO. Our credit rating remains A+ stable, both by ICRA and CARE, unchanged since our last upgrade during the financial year of 2026. We remain firm on the trajectory outlined last year with the forecast to generate a cumulative cash flows of more than INR 2,000 crores over a period of FY27 to FY31. This enabled us to fund our committed growth capitals while maintaining a strong balance sheet.

Speaker #3: Net debt as on June 30, 2026, was approximately ₹1,490 crore. Our net debt to EBITDA stood at approximately 3.2x on a trailing 12-month basis, and approximately 2.4x for operating assets, excluding the capital deployed towards growth.

Speaker #3: Our effective interest rate is at 7.8%, approximately 300 basis points lower than at the time of our IPO. Our credit rating remains A+ stable, both by ICRA and CARE, unchanged since our last upgrade during the financial year 2026.

Speaker #3: We remain firm on the trajectory outlined last year, with the forecast to generate cumulative cash flows of more than ₹3,000 crore over the period FY27 to FY31.

Speaker #3: This enabled us to fund our committed growth capital while maintaining a strong balance sheet. However, we have two uncertainties in our business: the external environment and the growth opportunities that may come our way.

Rajat Mehra: We have two uncertainties in our business, the external environment and the growth opportunities that may come our way. As we promised, the balance sheet needs to remain strong irrespective of either the two or both playing out. It is critical that the board has the flexibility to act in time. Therefore, we are enabling resolution for a capital raise during this meeting. Although the business actually stands very well capitalized as we speak. With that, let me hand over the word back to Ashish.

Speaker #3: But as we promised, the balance sheet needs to remain strong irrespective of either of the two or both playing out. So it is critical that the board has the flexibility to act in time.

Speaker #3: And therefore, we are enabling a resolution for a capital raise during this meeting, although the business actually stands very well capitalized as we speak.

Speaker #3: With that, let me hand the word back to Ashish.

Speaker #2: Thanks, Rajat. So, this operating performance that Rajat just spoke about—which is largely anchored around the 9% same-store RevPAR growth, and also around the same level of total revenue growth for the same-store assets—has remained within our expected long-term revenue growth forecast of 9% to 11%, even with repeated headwinds.

Ashish Jakhanwala: Thanks, Rajat. This operating performance that Rajat just spoke about, which is largely anchored around the 9% same-store RevPAR growth and also around same level of total revenue growth for the same-store asset, has remained within our expected long-term revenue growth forecast of 9% to 11%, even with repeated headwinds. This is very reassuring and allows us to focus on the growth ahead. We are excited about the strong growth pipeline we have secured across cities such as Hyderabad, Bangalore, Chennai, Noida, and Navi Mumbai, and with marquee brands such as the W, Westin, and the Marriott. This will deepen our presence in key office and aviation markets and allow us to benefit from the urbanization trends and opportunities that India offers. It is also worth understanding how the portfolio mix matters as much as the growth rate.

Speaker #2: This is very reassuring and allows us to focus on the growth ahead. We're excited about the strong growth pipeline we have secured across cities such as Hyderabad, Bangalore, Chennai, Noida, and Navi Mumbai, and with marquee brands such as the W, Westin, and the Marriott.

Speaker #2: This will deepen our presence in key office and aviation markets, and allow us to benefit from the urbanization trends and opportunities that India offers.

Speaker #2: It will also be worth understanding how the portfolio mix matters as much as the growth rate. Last financial year, on a same-store basis, our upper upscale and upscale hotels earned almost four times in revenues what our mid-scale hotels earned on a per-key basis.

Ashish Jakhanwala: Last financial year, on a same-store basis, our upper upscale and upscale hotels earned almost four times in revenues what our midscale hotels earned on a per key basis. This is exactly why our portfolio mix matters. Most of the 1,660 rooms across 7 new hotels in committed pipeline sit in the upper upscale and upscale segment. Add to that, around 450 rooms that we are rebranding from upper midscale to upscale. Our upscale share of revenue moves from approximately 40%, 41% today to approximately 60% by financial year 2030. The recent GST changes make this shift even more valuable since it impacts our midscale rooms far more than the upscale ones. Put simply, every new upscale key we now add brings in more revenue per key and a better margin than the midscale it often replaces or sits alongside.

Speaker #2: This is exactly why our portfolio mix matters. Most of the 1,660 rooms across seven new hotels in our committed pipeline sit in the upper-upscale and upscale segments.

Speaker #2: Add to that around 400 to 450 rooms that we are rebranding from upper mid-scale to upscale. In our upscale share of revenue, that moves from approximately 40–41% today to approximately 60% by financial year 2030.

Speaker #2: The recent GST changes make this shift even more valuable, since they impact our mid-scale rooms far more than the upscale ones. Put simply, every new upscale key we now add brings in more revenue per key and a better margin than the mid-scale rooms it often replaces or sits alongside.

Speaker #2: This gives us asymmetric growth—a bigger jump in revenue and profit than our room count alone would suggest. However, at the same time, mid-scale remains valuable for cyclical resilience, as is evident from its RevPAR growth in quarter one.

Ashish Jakhanwala: This gives us an asymmetric growth, a bigger jump in revenue and profit than our room count alone would suggest. However, at the same time, midscale remains valuable for cyclical resilience, as is evident from its RevPAR growth in Q1. Beyond our core business, we continue to support the experiential leisure platform through RARE India. The RARE portfolio now stands at 75 hotels with 1,046 rooms across 15 states. It's a curated collection of heritage palaces, wildlife lodges, and boutique resorts. RARE is an asset-light model. RARE owns the platform, not the underlying hotels, and its economics will come from 3 sources. The fee income from the business it generates for its hotel partners, additional incentive fee in select hotels, and selective opportunistic investments. One such being an 8-acre estate in Uttarakhand that we have opportunity to acquire for around INR 12 crore.

Speaker #2: Beyond our core business, we continue to support the experiential leisure platform through Rare India. The RARE portfolio now stands at 75 hotels with 1,046 rooms across 15 states, a curated collection of heritage palaces, wildlife lodges, and boutique resorts.

Speaker #2: Rare is an asset-light model. Rare owns the platform, not the underlying hotels. Its economics will come from three sources: the fee income from the business it generates for its hotel partners, additional incentive fees at select hotels, and selective opportunistic investments.

Speaker #2: One such being an eight-acre estate in Uttarakhand that we had the opportunity to acquire for around ₹12 crore. This was a rare hotel—the owner wanted to dispose of it as they were leaving the country—and we find such opportunities to be attractive.

Ashish Jakhanwala: This was a RARE hotel the owner wanted to dispose as they were leaving the country, and we find such opportunities to be attractive. The entry capital is low the asset potential, and much of the value creation will come from the RARE model itself. While RARE and the broader leisure thesis will use a very small part of capital, we see it having the potential to create a relatively larger value for our shareholders, although it will take some time. Marginal cost to marginal return ratio seems to be attractive, opportunity scalable, and the RARE platform gives us a sectoral knowledge and talent pool. In summary, our expectation from the market is modest, 9% to 11%, and we have delivered that for several quarters despite headwinds.

Speaker #2: The entry capital is low, the asset potential is high, and much of the value creation will come from the Rare model itself. So, while Rare and the broader leisure theses will use only a very small part of our capital, we see it having the potential to create a relatively larger value for our shareholders, although it will take some time.

Speaker #2: The marginal cost to marginal return ratio seems to be attractive and the opportunity is scalable. The rare platform gives us sectoral knowledge and a talent pool. In summary, our expectation from the market is modest—9 to 11%—and we have delivered that for several quarters, despite headwinds.

Speaker #2: Our portfolio growth is promising, both in scale and in terms of the segments we are growing, allowing us to materially strengthen our core business in urban centers. We have an opportunity to create totally asymmetrical returns from Rare while remaining nimble on capital allocation.

Ashish Jakhanwala: Our portfolio growth is promising, both in scale and in terms of segments we are growing, allowing us to materially strengthen our core business in urban centers. We have an opportunity to create totally asymmetrical returns from RARE while remaining nimble on capital allocation. Thank you for your time today. We will now open the floor for questions.

Speaker #2: Thank you for your time today. We will now open the floor for questions.

Speaker #1: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Karan Khanna from Ambit Capital. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Karan Khanna from Ambit Capital.

Speaker #1: Please go ahead.

Speaker #3: Yeah, thanks for the opportunity. Two questions from my side, Ashish. Firstly, can you talk a bit more about the Itminan Estate acquisition in Binsar, Almora?

Karan Khanna: Yeah. Thanks for the opportunity. Two questions from my side, Ashish. Firstly, can you talk a bit more about the Itmannan estate acquisition in Binsar, Almora? While the reviews appear quite strong on Booking.com, TripAdvisor, et cetera. If I look at the revenue performance for past few years, it has been fairly ordinary. More importantly, with RARE India and now Itmannan, you have already deployed INR 60 crores towards leisure as a segment and with further expansion at Itmannan, it appears leisure capital allocation will continue growing in your portfolio. Given that context, in your 2030 outlook, how are you thinking of leisure as a part of your business? If you can also talk a bit more about opportunities within RARE India that you are currently evaluating.

Speaker #3: While the reviews appear quite strong on Booking, TripAdvisor, et cetera, if I look at the revenue performance for the past few years, it's been fairly ordinary.

Speaker #3: And more importantly, with Rare India and now Itminan, you've already deployed ₹60 crore towards leisure as a segment. With further expansion at Itminan, it appears leisure capital allocation will continue growing in your portfolio.

Speaker #3: So given that context, in your 2030 outlook, how are you thinking of leisure as a part of your business? And if you can also talk a bit more about opportunities within Rare India that you're currently evaluating.

Speaker #2: Thank you, Karan. So, in terms of performance, you're absolutely right. The performance of this hotel took a little bit of a hit in the last year, year and a half, because the owners had moved to Canada.

Ashish Jakhanwala: Thank you, Karan. In terms of performance, you are absolutely right. The performance of this hotel took a little bit of a hit in the last year and a half, because the owners had moved to Canada. Since they moved out, of course, the hotel was pretty much in a state of being kept operational but not really seeing any active marketing. It also had gotten delisted from RARE for a period of time and will now get relisted. What you see as the near-term performance is not reflective of where this hotel needs to be. The Kumaon area, because of RARE, we now get some exceptional data. The Kumaon region now has these small experience-led hotels which drive rates anywhere between INR 20,000 to INR 40,000.

Speaker #2: So, since they moved out, of course, the hotel was pretty much in a state of being kept operational, but not really seeing any active marketing.

Speaker #2: It had also gotten delisted from Rare for a period of time and will now get relisted. So, what you see as the near-term performance is not reflective of where this hotel needs to be.

Speaker #2: You know, the Cumau area, because of Rare, we now get some exceptional data. The Cumau region now has these small, experience-led hotels, which drive rates anywhere between ₹20,000 to ₹40,000.

Speaker #2: And we feel that, with the combination of Rare and potentially Outdoor Collection by Marriott Bonvoy, and the unique asset that Itminan itself is, it should reclaim that price positioning and, therefore, it will reflect in the financials also.

Ashish Jakhanwala: We feel with the combination of RARE and potentially Outdoor Collection by Marriott Bonvoy and the unique asset that Itmannan itself is, it should reclaim that price positioning, and therefore it will reflect in the financials also. That is part one. Part two in terms of capital allocation. I think, Karan, it is fair to say that we like the RARE story as asset light. That is why we invested in it. To that extent, the incremental capital in RARE is negligible. Whatever we had disclosed is where we stop. Actually, the total capital investment in RARE is around INR 40 crores. Right?

Speaker #2: That's part one. Part two, in terms of capital allocation, I think, Karan, it's fair to say that we'd like the Rare story as asset-light.

Speaker #2: That's why we invested in it. And to that extent, the incremental capital in Rare is negligible. You know, whatever we had disclosed is where we stop.

Speaker #2: Actually, the total capital investment in Rare is around 40 crores, right?

Speaker #3: 40 crores.

Speaker #2: 47 crores. And now, with Rare and with Itminan— which is an add-on— it's about 60-odd crores, right? If you take a four- to five-year view, it's hard to put a number, but we like to believe that it will remain a relatively small portion of our capital allocation.

Nakul Manaktala: 47.

Rajat Mehra: 47.

Nakul Manaktala: INR 47 crores. Now with Itmannan, which is an add-on, it's about INR 60 odd crores, right? If you take a 4 or 5-year view, it's hard to put a number, but we like to believe that it will remain to be a relatively small portion of our capital allocation. I think in the zip code of 10% plus minus. Karan, what is important is we don't need to be apologetic about capital allocation because we think the value some of these assets will create will be far more than the percentage capital allocation they seek from us. The reason is the underlying thesis that we are now understanding through RARE India, that these hotels have an arbitrage where the amount of capital they require and the level of average room rate they produce are totally disconnected.

Ashish Jakhanwala: INR 47 crores. Now with Itmannan, which is an add-on, it's about INR 60 odd crores, right? If you take a 4 or 5-year view, it's hard to put a number, but we like to believe that it will remain to be a relatively small portion of our capital allocation. I think in the zip code of 10% plus minus. Karan, what is important is we don't need to be apologetic about capital allocation because we think the value some of these assets will create will be far more than the percentage capital allocation they seek from us. The reason is the underlying thesis that we are now understanding through RARE India, that these hotels have an arbitrage where the amount of capital they require and the level of average room rate they produce are totally disconnected.

Speaker #2: I think in the zip code of 10% plus or minus. But Karan, what is important is we don't need to be apologetic about capital allocation, because we think the value some of these assets will create will be far more than the percentage capital allocation they seek from us.

Speaker #2: And the reason is the underlying thesis that we are now understanding through Rare India: that these hotels have an arbitrage, where the amount of capital they require and the level of average room rate they produce are totally disconnected.

Speaker #2: So if you take a core business hotel, there's a kind of correlation between segment, cost per square foot, and the average room rate.

Ashish Jakhanwala: If you take a core business hotel, there's a kind of a correlation between segment cost per square foot and the average room. The hotels we've seen through RARE India, a large part of rate is realized through experiences and distribution. Even though the capital allocation, Karan, will remain really small, we like to believe, and it's early days, that the value it will create for the shareholders will be disproportionate. I think we need to be clear that the amount of capital they'll suck up today and in the future may not really pass the zip code of around 10%, 12%.

Speaker #2: But the hotels we've seen through Rare India, a large part of rate is realized through experiences and distribution. So even though the capital allocation, Karan, will remain really small, we like to believe—and it's early days—that the value it will create for the shareholders will be disproportionate.

Speaker #2: But I think we need to be clear that the amount of capital they'll suck up today and in the future may not really pass the zip code of around 10–12%.

Speaker #3: Sure. And secondly, and lastly, if you look at the RevPAR performance, it appears ERRs were largely flat on a year-over-year basis. No, there was a two or three percentage point improvement in that.

Karan Khanna: Sure. Secondly, and lastly, if you look at the RevPAR performance, it appears ARRs were largely flat on a Y-o-Y basis. There was 2% or 3 percentage points improvement in that. As for the rest of FY27, when you think about growth, how much of that is being penciled in via ARRs and how much of that will be occupancy-led? Also for July, have you seen a sharp recovery in July or are trends similar to what you had seen last quarter?

Speaker #3: But as for the rest of FY27, when you think about growth, how much of that is being penciled in via ERRs, and how much of that will be occupancy-led?

Speaker #3: And also, for July, have you seen a sharp recovery in July, or are trends similar to what you'd seen last quarter?

Speaker #2: It's a 2.1. How do we see FY27 growth structured in terms of rate versus occupancy? I think, Karan, in the first six months, you'll see occupancy driving the total revenue growth, and occupancy continues to remain extremely, extremely robust.

Ashish Jakhanwala: Two points. One is how do we see FY27 growth structured in terms of rate versus occupancy? I think, Karan, in the first 6 months, you'll see occupancy driving the total revenue growth and occupancy continues to remain extremely robust. If you had asked me 5 years back, can you underwrite a 79% occupancy for a business hotel portfolio? I myself would have been reluctant, and I'm sure you and I had this conversation some time back, right? Today it's easy to underwrite 70s, early 80s occupancy for business hotels. Having said that, don't forget that the domestic share of occupancy has gone from 78% and 79% to about 82%. It comes at a certain cost because my international business always came at a premium of 10%, 15%, and 20%, depending on the segment you operate in.

Speaker #2: I mean, if you had asked me five years back, can you underwrite a 79% occupancy for a business hotel portfolio? I myself would have been reluctant.

Speaker #2: And I'm sure you and I had this conversation some time back, right? But today, it's easy to underwrite 70s, early 80s occupancy for business hotels.

Speaker #2: Having said that, don't forget that the domestic share of occupancy has gone from 78–79% to about 82%. But it comes at a certain cost because my international business always came at a premium of 10, 15, 20% depending on the segment you operate in.

Speaker #2: So, as we moved towards H2, we rebalanced the domestic versus international. That rate growth has automatically come into our portfolio. That's part one. Part two, I will give you the answer, but I'll also caution that one month is never representative of either a quarter or the balance of the year.

Ashish Jakhanwala: As towards H2, we rebalance the domestic versus international, that rate growth will automatically come to our portfolio. That's part one. Part two, I will give you the answer, but I'll also caution that one month is never representative of either a quarter or the balance of the year. July quite strong. I won't want to give specific numbers because we've not done that before as a practice to give. I can assure you that July is trending far ahead of where we ended the previous quarter. Also we are seeing a growth in rate now, which we had not seen in Q1. The trends that we are seeing are quite encouraging. Karan, I will caution everybody, it's one month of the three months of this quarter, and we still have eight more quarters to go before we end this year.

Speaker #2: But July, quite strong. and I won't want to give specific numbers because we've not done that before as a practice to give, but I, I can, I can assure you that July is trending far ahead of where we ended the previous quarter.

Speaker #2: And also, we are seeing a growth in rate now, which we had not seen in Q1. So the trends that we are seeing are quite encouraging.

Speaker #2: But Karan, I will caution everybody, it's one month of the three months of this quarter, and we still have eight more months to go before we end this year.

Speaker #3: Sure. Thank you. I'll come back and reach out to you for any follow-ups.

Karan Khanna: Sure. That's it. I'll come back to you for any follow-ups.

Speaker #2: Thank you, Karan.

Speaker #1: Thank you. The next question is from the line of Ginesh Joshi from PL Capital. Please go ahead.

Ashish Jakhanwala: Thank you, Karan.

Operator: Thank you. The next question is from the line of Jinesh Joshi from PL Capital. Please go ahead.

Speaker #4: Am I audible?

Speaker #2: yes, Dinesh.

Jinesh Joshi: Am I audible?

Speaker #4: Yeah, sir, my question is on Rare. I think we have mentioned in the presentation that out of 75 hotels, roughly about 40 hotels have agreed to be a part of the Marriott Outdoor Collection program.

Ashish Jakhanwala: Yes, Jinesh.

Jinesh Joshi: Sir, my question is on RARE India. I think we have mentioned in the presentation that out of 75 hotels, roughly about 40 hotels have agreed to be a part of the Marriott Outdoor Collection program. Given the percentage, were we expecting the number to be in this trajectory? Also, what could be the reason for not signing to the Marriott program? Because essentially the hotelier gets the brand right, which helps him boost his occupancy and ARR. Any specific reason why the sign-ups apparently appear to be slightly lower?

Speaker #4: Now, given the parentage, were we expecting the number to be on this trajectory? Also, what could be the reason for not signing on to the Marriott program?

Speaker #4: Because essentially, the hotelier gets the brand right, which helps him boost his occupancy and ARR. So, any specific reason why the sign-ups apparently appear to be slightly lower?

Speaker #2: So, Ginesh, actually, the sign-ups are far ahead of our own expectations when we had done the transaction. And it's nothing to do with them liking it or not.

Ashish Jakhanwala: Jinesh, actually the sign-ups are far ahead of our own expectation when we had done the transaction. It's nothing to do about them liking or not. It's about the pace. A bunch of reasons will relate to this. One is some of those hotels were on other platforms. We obviously clearly don't want to interrupt existing contracts that any parties may have. We're very mindful of that. There is about 10 or 12 hotels which currently are on other platforms, and they'll make their own decisions to be on Marriott Bonvoy. For the balance, I think it's about just getting in touch with the owners, explaining the benefit analysis, doing a bit of a property review to understand what fire, life safety measures need to be taken. It's just a time and a process.

Speaker #2: It's about the pace. So, a bunch of reasons will relate to this. One is, some of those hotels were on other platforms, and, you know, we obviously clearly don't want to interrupt existing contracts that any parties may have.

Speaker #2: So we're very mindful of that. There are about 10 or 12 hotels which are currently on other platforms, and they'll make their own decisions to be on Marriott Bonvoy.

Speaker #2: And for the balance, I think it's about just getting in touch with the owners, explaining the benefit analysis, doing a bit of a property review to understand, you know, what fire-life safety measures need to be taken.

Speaker #2: So it's just a matter of time and process. But I think, in terms of the level of participation and the number of confirmations that we have received, it's a lot more encouraging than what we had anticipated originally.

Ashish Jakhanwala: I think in terms of the level of participation, the level of confirmations that we have received is a lot more encouraging than what we had anticipated originally.

Speaker #4: Sure. Sir, just to understand this, right? I mean, if a hotelier is on a rare platform, does it imply that he cannot be on any other OTA?

Jinesh Joshi: Sure. Sir, just to understand this right, if a hotelier is on a RARE platform, does it imply that he cannot be on any other OTA? Is that understanding correct or-

Speaker #4: Is that understanding correct, or—I mean, how do...

Speaker #2: No, no. He can be on OTA. Ginesh, OTA, of course, is independent. All of our Marriott, Hyatt, and IHG hotels are on OTA.

Ashish Jakhanwala: No.

Jinesh Joshi: I mean.

Ashish Jakhanwala: He can be on OTA Jinesh, OTA of course is independent. All of our Marriott and Hyatt and IHG hotels are on OTA. Similarly, all their hotels, including the ones which will go on Outdoor Collection at their own discretion, can or cannot be on OTA. There's no restriction to that. When I talk about other platforms, I'm talking about platforms like Mr & Mrs Smith, or which are very similar to Bonvoy. Because of it being a legacy company, there are about 10 or 12 hotels which are on these platforms, and I will reiterate, it's not our intent to ever get between contract of two parties. We'll allow those owners to take their own calls. We are focusing on the hotels which are currently unaffiliated with similar platforms. OTAs, there's no issue.

Speaker #2: Similarly, all Rare hotels, including the ones which will go on outdoor collection, at their own discretion, can or cannot be on OTAs. There's no restriction to that.

Speaker #2: When I talk about other platforms, I'm talking about platforms like Mr. and Mrs. Smith, which are very similar to Bonvoy. So, because of it being a legacy company, there are about 10 or 12 hotels which are on these platforms.

Speaker #2: And I will reiterate, it's not our intent to ever, you know, get between a contract of two parties. So we'll allow those owners to take their own calls.

Speaker #2: And we are focusing on the hotels which are currently unaffiliated with similar platforms. OTAs—there's no issue.

Speaker #4: Understood. Sir, one last question from my side, and it pertains to the fundraise. I know this is just an enabling resolution that we have taken.

Jinesh Joshi: Understood. Sir, one last question from my side, and it pertains to the fundraise. I know this is just an enabling resolution that we have taken. Given the fact that the promoter holding is slightly lower and majority of our inventory addition is back-ended, and given the free cash generation that we are seeing, which implies limited funding needs in the near term, any specific reason to kind of go ahead and take this resolution of INR 750 crores?

Speaker #4: But given the fact that the promoter holding is slightly lower, and the majority of our inventory addition is back-ended, and given the free cash generation that we are seeing, which implies limited funding needs in the near term, is there any specific reason to go ahead and take this resolution of ₹750 crores?

Speaker #2: So Ginesh, I think, like Rajat articulated, there are three or four things we need to be mindful of. Number one is that we've seen—starting last year with Operation Sindoor, the Indigo crisis, the Middle East crisis—every quarter we've seen something that would have been termed as unpleasant, would have been termed as unexpected.

Ashish Jakhanwala: Jinesh, I think like Rajat articulated, there are three or four things we need to be mindful of. Number one is that we've seen starting last year with Operation Sindoor, IndiGo crisis, Middle East crisis. Every quarter, we've seen something that would have been termed as unpleasant, would have been termed as unexpected. I think what's very heartening is that SAMHI and largely the hotel industry, and we are not alone, has weathered these storms reasonably well on account of very strong domestic demand. It does give you a sense of alarm about the fact that the world is clearly not normal. That's part one. Part two, interestingly, sometimes when the world is not going right, is when you get hit with some opportunities. Not that we see anything right now in the horizon.

Speaker #2: I think what's very heartening is that, Sammy, and largely the hotel industry—and you're not alone—has weathered these storms reasonably well on account of very strong domestic demand.

Speaker #2: But it does give you a, a sense of alarm about the fact that the world is clearly not normal. So that's part one.

Speaker #2: Part two: Interestingly, sometimes when the world is not going right is when you get hit with some opportunities—not that we see anything right now on the horizon.

Speaker #2: You put the two together, and often companies are motivated to let the financial discipline, you know, be diluted. We have that one promise that we will never violate, which is our financial discipline and balance sheet strength.

Ashish Jakhanwala: You put the two together, often companies are motivated to let the financial discipline be diluted. We have that one promise that we will never violate, which is our financial discipline and balance sheet strength. Now, as and when such problems or opportunities arise, Jinesh, we just want the board to be capable to take their decisions in time. Therefore, I would think not just this year, you would see every year, we will take an enabling resolution as a practice just to provide a professional board with financial flexibility to act in time if there is a need. That's really the reason, and I think we should be ready that it is not just this year. We will make sure that the company's board has the ability to act in time at all times.

Speaker #2: Now, as and when such problems or opportunities arise, Ginesh, we just want the Board to be capable of taking their decisions in time. And therefore, I would think not just this year—you would see every year, we will take an enabling resolution as a practice.

Speaker #2: Just to provide a professional board with financial flexibility to act in time if there is a need, you know. So that's really the reason.

Speaker #2: And I think we should be ready that it's not just this year. We will make sure that the company's board has the ability to act in time, at all times.

Speaker #4: Sure, sir. Thank you so much, and all the best.

Speaker #2: Thank you, Ginesh.

Speaker #1: Thank you. The next question is from the line of Vikas Ahuja from Antiques Stockbroking. Please go ahead.

Jinesh Joshi: Sure, sir. Thank you so much, and all the best.

Ashish Jakhanwala: Thank you, Jinesh.

Operator: Thank you. The next question is from the line of Vikas Ahuja from Antique Stock Broking. Please go ahead.

Speaker #5: Yeah, hi. am I audible?

Speaker #2: Yes, Vikas, you are.

Speaker #5: Yes. hi. Good morning. And thank you, for taking my question. so my first question is, Ashish, I mean, if I look at the ADR growth, right, I mean, since we have listed, it's the lowest in last two quarters, we, we have seen, I think, last quarter was flat, and this quarter, it's close to 2.6, 2.7.

Vikas Ahuja: Yeah. Hi. Am I audible?

Ashish Jakhanwala: Yes, Vikas, you are.

Vikas Ahuja: Yes. Hi, good morning, and thank you for taking my question. My first question is, Ashish, if I look at the ADR growth, since we have listed, it's the lowest in last two quarters. We have seen, I think last quarter was flat, and this quarter it's close to 2.6, 2.7. Compared with the early double-digit growth we were witnessing, is it primarily it's because of the West Asia disruption and we have more of a Marriott-led inventory? Just to add on, if I look at the occupancy, it's now touching almost 79%. Is it more of a tactical play, like we are just trying to because the travel is little muted, especially in the southern cities? We are just trying to have lower rate and trying to bump up the occupancy.

Speaker #5: So, compared with the early, you know, double-digit growth we were witnessing, is that primarily, you know, because of the West Asia disruption, and we have more of a Marriott-led inventory?

Speaker #5: And, just to add on, if I look at the occupancy, it's now touching almost 79%. So is it more of a tactical play, like we are just trying to, because the travel is a little muted, especially in the southern cities?

Speaker #5: We are just trying to have a lower rate and trying to bump up the occupancy.

Speaker #4: So, Vikas, I think a couple of things. A 79% capacity utilization, or occupancy, indicates anything but a very strong and resilient demand environment. Okay.

Ashish Jakhanwala: Vikas, I think a couple of things. A 79% capacity utilization or occupancy indicates anything but a very strong and resilient demand environment. Okay. I would actually seek comfort in that number, especially for a company like ours, which is today predominantly business hotels. Two, you are absolutely right. The last quarters, the West Asia crisis, which has then led to disruption in international business travel or international inbound travel, is leading to the rate growth being slightly soft. Having said that, I think we've always remained clear that we focus more on total revenue growth because operators will take their own decisions quarter on quarter about yielding the asset, sometimes through occupancy, sometimes through rate. In terms of total revenue growth, and remove all the noise and the clutter of new openings and one-time, the same store is Holy Grail.

Speaker #4: So, I would actually seek comfort in that number, especially for a company like ours, which is today predominantly business hotels. Two, you are absolutely right.

Speaker #4: In the last quarter, the West Asia crisis, which has led to disruption in international business travel or international inbound travel, is leading to the rate growth being slightly soft.

Speaker #4: Having said that, I think we've always remained clear that we focus more on total revenue growth, because operators will take their own decisions quarter-on-quarter about yielding the asset—sometimes through occupancy, sometimes through rate.

Speaker #4: And in terms of total revenue growth, if you remove all the noise and the clutter of new openings and, you know, one-time items, the same store is the holy grail.

Speaker #4: The same set of hotels last year versus the same set of hotels this year, the total revenue growth was around 9–9.5%. And that remains squarely in the zip code of 9–11% that we've guided for the long term.

Ashish Jakhanwala: The same set of hotels last year versus same set of hotels this year, the total revenue growth was around 9.5%. That remains squarely in the ZIP code of 9% to 11% that we've guided for the long term. I must confess that what we need to deliver our business plan, which is INR 3,000 crore of free cash, a lot of growth CapEx and the revenue growing two and a half times from where they were last year to where they should be in the next 4 to 5 years. From our perspective, the total revenue growth remains pretty much healthy in range that we expect it to. Capacity utilization or occupancies are quite heartening at 79%, 80%. Yes, there is a short-term dilution in the average rates because of the inbound.

Speaker #4: I must confess that what we need to deliver our business plan, which is ₹3,000 crores of free cash, a lot of growth capex, and the revenue growing two and a half times from where they were last year to where they should be in the next four to five years.

Speaker #4: So from our perspective, the total revenue growth remains pretty much healthy, in the range that we expected it to. Capacity utilization or occupancies are quite heartening at 79–80%.

Speaker #4: Yes, there is a short-term dilution in the average rates because of the inbound, but I think, as I said earlier, both when that crisis starts to stabilize—I'm not even using the word "the crisis gets resolved" because, honestly, we've seen the Russia-Ukraine war hasn't resolved—but so long as a crisis stabilizes and the world gets used to it and we move into H2, I think you'll start seeing some of that growth coming through rate.

Ashish Jakhanwala: I think, as I said earlier, both when that crisis starts to stabilize, I'm not even using the word the crisis gets resolved, because honestly, we've seen the Russia-Ukraine war hasn't resolved. So long as the crisis stabilizes and the world gets used to it, we move into H2, I think you'll start seeing some of that growth coming too, through rate. As I was responding to Karan's questions earlier. In July, we've already seen that starting to play out. Again, I will repeat my caution that 1 month is not representative of the balance 8 months that have to come. In July, we've seen the total revenue growth split between half rate and half occupancy. I think because it's quarter-on-quarter revenue management, we should remain focused on two or three things.

Speaker #4: And as I was responding to current questions earlier, in July, we've already seen that starting to play out. But again, I will repeat my caution that one month is not representative of the balance eight months that have to come.

Speaker #4: But in July, we've seen the total revenue growth split between half rate and half occupancy. So I think, Vikas, this quarter-on-quarter revenue management, we should remain focused on two or three things.

Speaker #4: One is total revenue growth, especially same-store. And this is where the margin profile is heading. I'm sure somebody will, at some point, ask that question, otherwise we'll address it – that we also see the margin profile significantly improving.

Ashish Jakhanwala: One is total revenue growth, especially same store, and two is where the margin profile is heading. I'm sure somebody will at some point ask that question, otherwise we'll address it, that we also see the margin profile significantly improving. A, because of the GST impact. Two, we had some of the new openings last year in the Holiday Inn Express platform. C, of course, the fact that increasing share of upscale will boost our margin because they don't get affected by GST. Those are two or three parameters that we track very closely. Yeah, we'll keep you updated as we see the rate growth come in H2.

Speaker #4: A, because of the GST impact. Two, we had some of the new openings last year in the Holiday Express platform. And C, of course, the fact that increasing share of upscale will boost our margins, because they don't get affected by GST.

Speaker #4: So, those are two or three parameters that we track very closely. But yeah, we'll keep you updated as we see the rate growth come in, in H2.

Speaker #5: Sure, that's helpful. Ashish, sorry to, you know, ask the question again on this fundraising, but I'm just trying to understand because I remember in the last Amnesty, we did talk about an investment surplus of 1,700 billion.

Vikas Ahuja: Sure. That's helpful. Actually, I'm sorry to ask the question again on this fundraising, I'm just trying to understand because I remember in last Analyst Day we did talk about investment surplus of INR 1,700 billion. I think that time the growth guidance was little higher and it has come down for all the known reasons. Why we are talking about equity-led dilution and not taking an enabling resolution for debt instead? Yeah. Thank you.

Speaker #5: I think at that time, the growth guidance was a little higher, and it has come down for all the known reasons. But why, you know, are we talking about equity-led dilution and not taking an enabling resolution for debt instead?

Speaker #5: yeah, thank you.

Speaker #4: This is an enabling resolution for almost everything, and I will repeat, it's just an enabling resolution to allow the Board to act in time. And, and, and Vikas, to answer your question—like Rajat said, we are taking this resolution to respond to what we don't know.

Ashish Jakhanwala: Enabling resolution for almost everything. I will repeat that it's just enabling resolution to allow the board to act in time. Vikas, to answer your question, like Rajat said, we are taking this resolution to respond to what we don't know. If everything goes as per what we think, both on the problems and on the opportunities, then we have a clear path set. I think we need to be prepared to respond to both problems if we continue to see them, or opportunities that we don't know about today. What I think this management is very clear is not we'll take a chance on is leading growth or getting into problems without a well-capitalized balance sheet. Therefore, the board needs to have that ability, and it needs to have that ability every year so that it can act in a timely fashion.

Speaker #4: If everything goes as per what we think, both on the problems and on the opportunities, then we have a clear path set. But I think we need to be prepared to respond to both problems if we continue to see them, or opportunities that we don't know about today.

Speaker #4: But what I think this management is very clear on is that it will not take a chance on leading growth or getting into problems without a well-capitalized balance sheet.

Speaker #4: Therefore, the Board needs to have that ability, and it needs to have that ability every year so that it can act in a timely fashion.

Speaker #4: COVID has taught us one thing: if you're not prepared, you'll lose. So we'll keep the Board and the company prepared so that it can act in time. But you're absolutely right.

Ashish Jakhanwala: COVID has taught us one thing: if you're not prepared, you lose. We'll keep the board and the company prepared so that it can act in time. You're absolutely right. All the numbers that we've shown to you, they are sum of parts. They're not by forecast. We have not assumed any new acquisitions to lead up from INR 1,200 crores to INR 3,000 crores. That whole path is available for everybody to see. There is no information asymmetry there. I think we are just preparing ourselves for what we don't know.

Speaker #4: All the numbers that we've shown to you, you know, they are sum of parts. They're not wild forecasts. We have not assumed any new acquisitions to lead up from ₹1,200 crore to ₹3,000 crore.

Speaker #4: So that whole path is available for everybody to see. There is no information asymmetry there. But I think we are just preparing ourselves for what we don't know.

Speaker #5: Thanks, Ashish. Wish you luck for the next quarter. Thanks.

Speaker #2: Thank you. The next question is from the line of Shrinjana Mittal from MS Capital. Please go ahead.

Vikas Ahuja: Thanks, Ashish. Wish you luck for the next quarter. Thanks.

Operator: Thank you. The next question is from the line of Srinjana Mittal from MS Capital. Please go ahead.

Speaker #6: Hi. thanks for the opportunity. Hi. Thanks for the opportunity. am I audible?

Srinjana Mittal: Hi. Thanks for the opportunity.

Shrinjana Mittal: Hi. Thanks for the opportunity.

Speaker #2: Yeah.

Speaker #4: Yes, you are.

Speaker #6: Yeah, so you mentioned that the rate growth was slower in this quarter. But if I look at segment-wise, I see that upper upscale, the rate growth was slightly softer than midscale.

Operator: Yeah.

Srinjana Mittal: Am I audible?

Shrinjana Mittal: Am I audible?

Operator: Yes, you are.

Srinjana Mittal: Yeah. You mentioned that the rate growth was slower in this quarter. If I look at segment-wise, I see that upper upscale the rate growth was slightly softer than mid-scale and what we would usually expect from this segment, right? What I'm trying to understand is there a pattern that you expect to see that when the overall demand softens, the upper upscale tends to underperform a little bit because there is some sort of downtrading which is happening? Yeah, that is my question.

Shrinjana Mittal: Yeah. You mentioned that the rate growth was slower in this quarter. If I look at segment-wise, I see that upper upscale the rate growth was slightly softer than mid-scale and what we would usually expect from this segment, right? What I'm trying to understand is there a pattern that you expect to see that when the overall demand softens, the upper upscale tends to underperform a little bit because there is some sort of downtrading which is happening? Yeah, that is my question.

Speaker #6: And what would we usually expect from this segment, right? So, what I'm trying to understand is, is there a pattern where you expect to see that when overall demand softens, the upper upscale tends to underperform a little bit because there is some sort of down trading happening?

Speaker #6: Yeah, that is my question.

Speaker #4: No. So, so the okay. So rest part, you would see softer in, the upscale. Actually, that the raw average room rate was in that zip code of 3 and a half, 4% for all the segments.

Ashish Jakhanwala: Okay. RevPAR, you would see softer in the upscale. Actually, the raw average room rate was in that zip code of 3.5% to 4% for all the segments. There is no disparity. What you saw is that the mid-scale outperformed the broader upscale because of the RevPAR growth of 13.7%. That led by very healthy occupancy levels. If you see, my upper upscale portfolio was at 78.4%, whereas the mid-scale portfolio delivered 81.3% occupancy. Also, what we need to bear in mind is last year same quarter, the occupancy levels for the upscale was about 74%, but for the mid-scale it was 73.8%. Year on year, that portfolio has made a really good improvement.

Speaker #4: There is no disparity. But what you saw is that the midscale outperformed the broader upscale because of the RevPAR growth of 13.7%. That was led by very healthy occupancy levels.

Speaker #4: So, if you see, my upper upscale portfolio was at 78.4%, whereas the midscale portfolio delivered 81.3% occupancy. Also, what we need to bear in mind is, last year, same quarter, the occupancy levels for upper were about 74%, but for the midscale, it was 73.8%.

Speaker #4: So, year on year, that portfolio has shown really good improvement. And actually, you know, I don't recollect if we discussed this in the past, but we did enumerate that for FY27, we have two or three opportunities within our portfolio which will remain outside of our dependence on the market.

Ashish Jakhanwala: Actually, I don't recollect if we discussed this in the past, we did enumerate that for FY27 we have two or three opportunities within our portfolio which will remain outside of our dependence on the market. One was, of course, the broader mid-scale, which we felt had an opportunity to perform better, we are very happy to report that in Q1 it has delivered as we thought it would. That's why you see it's growing disproportionately. Second, there was a part of our portfolio, which we felt had underperformed in FY26. Early indications are that part of the portfolio is performing really, really strong, that's why we remain fairly bullish that Q1 is only a start. The early trends that we are seeing for Q2 and beyond are actually far ahead of what we delivered in Q1.

Speaker #4: One was, of course, the broader midscale, which we felt had an opportunity to perform better, and we are very happy to report that in the first quarter, it has delivered as we thought it would.

Speaker #4: And that's why you see it's growing disproportionately. Second, there was a part of our portfolio which we felt had underperformed in FY26. Early indications are that part of the portfolio is now performing really, really strongly.

Speaker #4: And that's why we remain fairly bullish that Q1 is only a start, and the early trends that we are seeing for Q2 and beyond are actually far ahead of what we delivered in Q1.

Speaker #6: Understood. No, that's very y clear. this sec just one more question on the GST impact. This is, this quarter, it's little above 2%. So this is just because of the mix because, the upper upscale mix was a little bit lower and midscale was higher.

Srinjana Mittal: Understood. No, that's very clear. Just one more question on the GST impact. This quarter it's little above 2%. This is just because of the mix because the upper upscale mix was little bit lower and mid-scale was higher. Is that a right understanding?

Shrinjana Mittal: Understood. No, that's very clear. Just one more question on the GST impact. This quarter it's little above 2%. This is just because of the mix because the upper upscale mix was little bit lower and mid-scale was higher. Is that a right understanding?

Speaker #6: is that a right understanding?

Speaker #4: That's right. That's right. So, as you get a little bit of a larger number of rooms being sold below 7.5, what happens is your GST impact enlarges in that quarter.

Ashish Jakhanwala: That's right. As you get a little bit of larger number of rooms being sold below 7.5%, what happens is your GST impact enlarges in that quarter. Typically Q1, Q2, you see volume-driven growth in any case in the sector, and you will see larger GST impact. Well, from Q3, interestingly, at least on a YOY basis, the GST impact kind of equalizes because prior period also will have that. In terms of margin depression, it of course continues, but it'll be lesser in H2 than in H1.

Speaker #4: So, you know, typically in Q1 and Q2, you see volume-driven growth in any case in the sector, and you will see a larger GST impact.

Speaker #4: Well, from Q3, interestingly, at least on a year-over-year basis, the GST impact kind of, you know, equalizes, because the prior period will also have that.

Speaker #4: But in terms of margin depression, it's of course continuous, but it will be lesser in H2 than in H1.

Speaker #6: Right. So it would be closer to 2%, and—

Speaker #4: That's right.

Speaker #6: Around there. Yeah. Understood. No, thanks for taking my question, and all the best. Thank you.

Srinjana Mittal: Right. It would be closer to 2%?

Shrinjana Mittal: Right. It would be closer to 2%?

Speaker #4: Thank you so much.

Ashish Jakhanwala: That's right.

Speaker #2: Thank you. The next question is from the line of Vaibhav Hav Mullay from Haitong India Securities. Please go ahead.

Srinjana Mittal: Around there. Yeah. Understood. No, thanks for taking my question, and all the best. Thank you.

Shrinjana Mittal: Around there. Yeah. Understood. No, thanks for taking my question, and all the best. Thank you.

Ashish Jakhanwala: Thank you so much.

Operator: Thank you. The next question is from the line of Vaibhav Mulay from Kotak Institutional Equities. Please go ahead.

Speaker #5: Hi, thank you for taking my question. Congratulations on a good set of numbers, sir. My first question is on our F&B revenue growth for this quarter.

Vaibhav Mulay: Hi. Thank you for taking my question. Congratulations on the good set of numbers, sir. My first question was on our F&B revenue growth for this quarter. While overall room revenue has grown at a pretty decent pace, F&B growth has actually seen a bit of slowdown with around 4% growth year over year. I wanted to get a bit more color on why was there a slowdown in F&B, and what are the initiatives that you are taking to boost the F&B growth? That's my first question.

Vaibhav Muley: Hi. Thank you for taking my question. Congratulations on the good set of numbers, sir. My first question was on our F&B revenue growth for this quarter. While overall room revenue has grown at a pretty decent pace, F&B growth has actually seen a bit of slowdown with around 4% growth year over year. I wanted to get a bit more color on why was there a slowdown in F&B, and what are the initiatives that you are taking to boost the F&B growth? That's my first question.

Speaker #5: While overall room revenue has grown at a pretty decent pace, F&B growth has actually seen a bit of a slowdown, with around 4% growth year on year.

Speaker #5: I wanted to get a bit more color on why there was a slowdown in F&B, and what initiatives you are taking to boost F&B growth?

Speaker #5: That's my first question.

Speaker #4: Yeah, so very good question, Vaibhav. You know, what we have seen as a trend is that international travelers tend to be higher spenders on food and beverage, especially in our upscale segment, right?

Ashish Jakhanwala: Very good question, Vaibhav. What we have seen as a trend is that international travelers tend to be higher spenders on food and beverage, especially in our upscale segment. We clearly have seen the business mix move from almost 78%-79% domestic to 80%-83% domestic. A large bulk of that, honestly, I'm talking about portfolio-wide. This data would be even more stark if we were just to restrict ourselves to upscale. Second is we had a renovation in one of our key restaurants in Bangalore, which is now open again. Third, we had some event cancellations on account of the West Asia crisis. Some of them moved to July onwards. Like in Hyatt Regency Pune, we had some events in June, which got moved to July and August.

Speaker #4: We have clearly seen the business mix move from almost 78–79% domestic to 82–83% domestic. So, that is clear, and a large bulk of that—honestly, I'm talking about portfolio-wide.

Speaker #4: This data would be even more stark if we were to restrict ourselves to, you know, upper upscale, right? Second is, we had a renovation in one of our key restaurants in Bangalore, which is now open again.

Speaker #4: And third, we had some event cancellations on account of the West Asia crisis. Some of them moved to July onwards. Like in Hyatt Regency Pune, we had some events in June which got moved to July and August.

Speaker #4: So combination of these three has led to around a 3 and a half, 4% F&B growth against, 9%, 9, 10%, actually, the total room growth is 14%, F&B is muted at 3.7.

Ashish Jakhanwala: The combination of these three has led to around a 3.5%-4% F&B growth against 9%-10%. Actually, the total room growth is 14%. F&B is muted at 3.7%. That's why the blended average comes lower. As the events pick pace, you'll see that coming back.

Speaker #4: That's why the blended average comes lower. So, as the events take place, you will see that coming back.

Speaker #5: All right, second question, sir, on the GIC investment. You mentioned in the morning that you are evaluating a partnership with GIC for some of the new opportunities where Samhi is investing.

Vaibhav Mulay: All right. Second question, sir, on the GIC investment. You mentioned in the morning that you are evaluating the partnerships with GIC for some of the new opportunities that SAMHI is missing. Can you highlight a bit more about this in terms of which assets are you looking at that GIC can potentially invest incremental capital? Also, if you can highlight if any partnership that you are evaluating for existing assets.

Vaibhav Muley: All right. Second question, sir, on the GIC investment. You mentioned in the morning that you are evaluating the partnerships with GIC for some of the new opportunities that SAMHI is missing. Can you highlight a bit more about this in terms of which assets are you looking at that GIC can potentially invest incremental capital? Also, if you can highlight if any partnership that you are evaluating for existing assets.

Speaker #5: Can you highlight a bit more about this, in terms of which assets you are looking at where GIC can potentially invest incremental capital? And also, if you can, highlight if there are any partnerships that you're evaluating for existing assets.

Speaker #4: Okay, so second is easier. We're not evaluating any partnership for existing assets at this point of time, right? As per the GIC agreement, they have the right to participate to the extent of 35% in new upscale opportunities after we sign the joint venture agreement.

Ashish Jakhanwala: Okay. Second is easier. We're not evaluating any partnership for existing assets at this point of time. As per our GIC agreement, they have the right to participate to the extent of 35% in new upscale opportunities after we sign the joint venture agreement. The only opportunity that we've signed since our GIC JV is really the IKEA, the Ingka opportunity in Noida. We will know in due course of time whether they'll come in into that opportunity or not. Other than that, on the prior hotels, clearly there's no discussion at this point of time. For future acquisition opportunities, I'll repeat, the JV is constructed that we will continue to share 65, 35. 65 in favor of SAMHI, 35 in favor of GIC. What is important and pertinent here is that that joint venture is extremely well capitalized.

Speaker #4: the only opportunity that we've signed since our GIC JV is really the IKEA, the Inca opportunity in Noida. and we will know, in the next in due course of time whether they'll come in into that opportunity or not.

Speaker #4: Other than that, on the prior hotels, clearly there's no discussion at this point of time. For future acquisition opportunities, I'll repeat, you know, the JV is constructed such that we will continue to share 65:35—65% in favor of Samhi, 35% in favor of GIC.

Speaker #4: Also, what is important and pertinent here is that the joint venture is extremely well capitalized. So it has the firepower to grow if we see any opportunities come our way.

Speaker #4: But no conversation on existing, operating assets.

Ashish Jakhanwala: It has the firepower to grow if we see any opportunities come our way, but no conversation on existing operating assets.

Speaker #5: Sir, does 'new opportunity' include your dual-branded development in Navi Mumbai and W Hyderabad? Are these included?

Speaker #4: No, no, no, no. Those are opportunities which were seeded prior to the GIC joint venture. So, both Navi Mumbai and W Hyderabad are currently, and proposed to be, 100% by Samhi.

Vaibhav Mulay: Sir, does new opportunity include your dual-branded development in Navi Mumbai and W Hyderabad? Are these included?

Vaibhav Muley: Sir, does new opportunity include your dual-branded development in Navi Mumbai and W Hyderabad? Are these included?

Ashish Jakhanwala: No. Those were opportunities which were seeded prior to the GIC joint venture. Both Navi Mumbai and W Hyderabad are currently, and proposed to be owned 100% by Samhi.

Ashish Jakhanwala: No. Those were opportunities which were seeded prior to the GIC joint venture. Both Navi Mumbai and W Hyderabad are currently, and proposed to be owned 100% by SAMHI.

Speaker #5: Okay. Thank you so much, Anand.

Speaker #4: Thank you.

Speaker #2: Thank you. The next question is from the line of Karan Kamdar from Choice International Equity. Please go ahead. Mr. Kamdar, your line has been unmuted.

Vaibhav Mulay: Okay. Thank you so much.

Vaibhav Muley: Okay. Thank you so much.

Ashish Jakhanwala: Thank you.

Operator: Thank you. The next question is from the line of Karan Kamdar from Choice International. Please go ahead. Mr. Kamdar, your line has been unmuted. Please go ahead with the question. As there is no response from the Karan participant, the next question is from the line of Prashant Bihani from Elara Capital. Please go ahead.

Speaker #2: Please go ahead with your question. As there is no response from the current participant, the next question is from the line of Prashant Biyani from Elara Securities.

Speaker #2: Please go ahead.

Speaker #3: Yeah. Thank you for the opportunity. Sir, Hyatt Regency Pune—we're thinking of repositioning it as Grand Hyatt. That should happen by when?

Prashant Bihani: Yeah, thank you for the opportunity. Sir, Hyatt Regency Pune, we're thinking of pre-positioning it as Grand Hyatt. That should happen by when?

Prashant Biyani: Yeah, thank you for the opportunity. Sir, Hyatt Regency Pune, we're thinking of pre-positioning it as Grand Hyatt. That should happen by when?

Speaker #4: No, Prashant, sorry, there was some background noise. Prashant, there was a very early discussion, but we are not pursuing that right now.

Speaker #4: We've already seen significant change in the performance of that hotel. If you see slide number 27 of the presentation, which has been consistent for the last several quarters, that was not really the part of the—it was a discussion we had about two and a half, three years back, but since then we've seen the hotel, you know, grow fairly rapidly without that incremental capex.

Ashish Jakhanwala: Prashant, sorry, there's some background noise. Prashant, there was a very early discussion. We are not pursuing that right now. We've already seen a significant change in the performance of that hotel. If you see slide number 27 of the presentation, which has been consistent for last several quarters, that was not really the part of the picture. It was a discussion we had about two and a half, three years back. Since then, we've seen the hotel grow fairly rapidly without that incremental CapEx. We are obviously not going that way.

Speaker #4: So, we are obviously not going that way.

Speaker #5: And sir, secondly,

Speaker #3: W Hyderabad and Courtyard Pune, in which quarter of FY27 can we see the opening of these two hotels?

Prashant Bihani: sir, secondly, W Hyderabad and Courtyard Pune, in which quarter of FY27 can we see opening of these two hotels?

Prashant Biyani: sir, secondly, W Hyderabad and Courtyard Pune, in which quarter of FY27 can we see opening of these two hotels?

Speaker #4: So W Hyderabad is kind of very exciting, Prashant. We are running for that hotel to be fully operational for the second half of FY28.

Ashish Jakhanwala: W Hyderabad is kind of very exciting, Prashant. We are gunning for that hotel to be fully operational for the H2 of FY28. In terms of project progress, we have made progress as scheduled and which would have led to the opening in, let's say, June or so. We've always seen surprises come our way in terms of regulatory approvals and licenses. We'd like to be a little cautious and say that we will make sure that that hotel is available for operations in H2 of 2027. No, 2028, sorry. FY28. Calendar year 2027, really. Oh, okay. Second was Courtyard Pune. Courtyard Pune, we have started the back-office renovation. We've started doing the MEP renovation. One of the markets which was not impacted significantly by the West Asia crisis was Pune.

Speaker #4: In terms of project progress, we have made progress as scheduled, which would have led to the opening in, let's say, June or so.

Speaker #4: But we've always seen surprises come our way in terms of regulatory approvals and licenses, so we'd like to be a little cautious and say that we will make sure that that hotel is available for operations in the second half of 2027.

Speaker #3: The 28—sorry, FY28. Calendar year '27, really.

Speaker #4: Oh, okay. Second was Courtyard Pune. Second was Courtyard Pune. Courtyard Pune, we have started the back office renovation, we've started doing the MEP renovation.

Speaker #4: One of the markets which was not impacted significantly by the West Asia crisis was Pune. So, Prashant, we did take a strategic view to not let that inventory go off our books, especially at times when we see that market remaining more resilient compared to some of the other markets we operate in.

Ashish Jakhanwala: Prashant, we did take a strategic view to not let that inventory go off our books, especially at times when we see that market remaining more resilient to actually some of the other markets we operate in. While we are doing the back-end renovation, we have strategically deferred the public area and guest rooms renovations for now, which we now plan to start around April of 2027. Typically, as I said, it will take about five to six months.

Speaker #4: So, while we are doing the back-end renovation, we have strategically deferred the public area and guest room renovations for now, which we now plan to start around April of 2027.

Speaker #4: And typically, as I said, it will take about five to six months, you know.

Speaker #3: Sure. And just similarly, for Tribute Portfolio in FY28—it should be starting in the second half?

Prashant Bihani: Sure. Just similarly for Tribute Portfolio, in FY28, it should be starting H2?

Prashant Biyani: Sure. Just similarly for Tribute Portfolio, in FY28, it should be starting H2?

Speaker #4: That's so, you know, the Courtyard Pune, the W Hyderabad—both of these are now geared for the second half. And same for, actually, Jaipur. And actually, for Jaipur, we've received most of the drawings and development.

Ashish Jakhanwala: The Courtyard Pune, the W Hyderabad, both of these are now geared for the H2, and same for actually Jaipur. Actually Jaipur will receive most of the drawings and development. Thankfully for Jaipur, Prashant, it's easier because the period from April onwards does not contribute anything to the revenue and EBITDA. We can actually take the bold call of taking a lot of inventory offline and doing the renovations faster. The same task in Pune is a little bit more difficult because the revenue is spread across all 12 months, we have to do renovation in parts not to impact anything significantly on our revenues. That's how we see the timelines playing out right now.

Speaker #4: Thankfully for Jaipur, Prashant, it's easier because the period from April onwards does not contribute anything to the revenue in EBITDA. So we can actually take the bold call of taking a lot of inventory offline and doing the renovations faster.

Speaker #4: The same task in Pune is a little bit more difficult because, you know, the revenue is spread across all 12 months. So, we have to do the renovation in parts so as not to impact anything significantly on our revenues, right?

Speaker #4: So that's obviously the timeline that's playing out right now.

Speaker #3: Sure. Sir, thank you so much.

Speaker #2: Thank you. The next question is from the line of Karan Gupta from Asit C. Mehta Investment. Please go ahead.

Prashant Bihani: Sure, sir. Thank you so much.

Prashant Biyani: Sure, sir. Thank you so much.

Ashish Jakhanwala: Thank you.

Operator: Thank you. The next question is from the line of Karan Gupta from Asit C. Mehta Investment. Please go ahead.

Speaker #5: hi. soon my question on under rare bit art, so, in terms of, realization or the revenue part, how it is different, in terms of asset life, to our, you know, upper-up scale and upper-middle scale.

Operator: The next question is from the line of Karan Gupta from Asit C. Mehta Investment. Please go ahead.

Karan Gupta: Hi. My question on the Rare bit part. In terms of realization or the revenue part, how it is different in terms of asset-light to our upscale and upper midscale? Is it something we have the asset-light, the operation and maintenance part that you are doing for the Rare? Let's take an example, like INR 100 of billing. How much we will get in terms of our revenue? Just trying to understand the model a bit.

Speaker #5: Is it something—we have the asset-light, the operation and maintenance part that you're doing for the rare part. Or, how much the—you know, so let's take an example.

Speaker #5: Let's say ₹100 of billing—how much will we get in terms of our revenue? I'm just trying to understand the model.

Speaker #3: That's a good question.

Speaker #4: There'll be, within the rare, there'll be two revenue recognition models. Majority of it will be just the booking revenue, because what's happening is that Rare is entitled to your accommodation.

Ashish Jakhanwala: Good question. Within the Rare, there'll be two revenue recognition models. Majority will be just the booking revenues. Because what's happening is that Rare is entitled to a fee or a commission. There's a lot of background noise here. The first is really the fee or the commission income that Rare will get on account of the bookings it channelizes through the distribution. That's straight income that comes to Rare. We are seeing some hotels where there's an opportunity to sign what I would call a more extended agreement, in which case we feel that a higher share of revenue will come through to Rare over and above the booking revenue. That will mirror more like a pure, for lack of any other word, a franchise, where the revenue share of Rare will be actually higher than just the income coming through the booking.

Speaker #4: There's a lot of background noise. So, the first is really the fee or the commission income that Rare will get on account of the bookings. It channelizes through the distribution.

Speaker #4: So that's straight income that comes to Rare. We are seeing some hotels where there's an opportunity to sign what I would call a more extended agreement, in which case we feel that a higher share of revenue will come through to Rare over and above the booking revenue.

Speaker #4: So that will mirror more like a pure, for lack of a better word, a franchise, where the revenue share of rare will actually be higher than just that coming through the booking.

Speaker #4: We actually see increasing opportunities for that as well, which we had not, honestly, underwritten. So that's really a huge upside for us because it's not just the direct booking income.

Ashish Jakhanwala: We actually see increasing opportunities for that as well, which we had not honestly underwritten. That's really a huge upside for us because it's not just the direct booking income. We also see some of the fee income come through to Rare in the next few years. Those are the two sorts of income. The hotel revenues don't come to Rare. That remains with the hotel owner. Rare will recognize really the fee income that it generates from these hotels.

Speaker #4: We also see some of the fee income come through to RoCE in the next few years. So those are the two sorts of income.

Speaker #4: The hotel revenues don't come to Rare; that remains with the hotel owner. Rare will recognize really the fee income that it generates from these hotels.

Speaker #5: Okay, so share from booking revenues?

Speaker #4: That's a commission on the booking, basically.

Karan Gupta: Okay. Share from booking revenues.

Speaker #5: Okay, commission on the booking. Okay. Okay. And the reference number, can you share it?

Ashish Jakhanwala: That's the commission on the booking, basically.

Karan Gupta: Okay. Commission on the booking.

Ashish Jakhanwala: That's right.

Karan Gupta: Okay. The RevPAR, any number you can share?

Speaker #4: Refire of rare?

Speaker #5: Yeah.

Speaker #4: Okay. So RARE, obviously, is a different model. If I—it's a blend of 75 hotels. I think the average there would be the most mathematically dishonest thing to disclose, because the hotels operate from ₹15,000 average rate to ₹55,000, ₹60,000, ₹70,000 average rate.

Ashish Jakhanwala: RevPAR of Rare?

Karan Gupta: Yeah.

Ashish Jakhanwala: Rare obviously is a different model. It is a blend of 75 hotels. I think taking average there would be the most mathematically dishonest thing to disclose, because the hotels operate from INR 15,000 average rate to INR 55,000, INR 60,000, INR 70,000 average rates. Occupancy levels vary from 25% to 75%. As far as Rare is concerned, it is a booking engine. It is a provider of service. Really, RevPAR is important, but more important is how much business can we generate through Rare and through our proposed partnership with Marriott. On that business, Rare gets a commission from the hotel owners, and that is what it recognizes as its own income. That will be recognized more as a fee income.

Speaker #4: Occupancy levels vary from 25% to 75%. As far as RARE is concerned, it's a booking engine. It's a provider of service. So really, RevPAR is important, but more important is how much business can we generate through RARE and through our proposed partnership with Marriott.

Speaker #4: And on that business, Rare gets a commission from the hotel owners, and that is what is recognized as its own income. So that will be recognized more as fee income.

Speaker #4: in future, we'd like to color any refire reporting that we do because of rare, because honestly, our, you know, for forcible future, our core business remains to be, the owned hotels that we have in the, in, in the tier one business destination.

Ashish Jakhanwala: In future, I think we like to color any RevPAR reporting that we do because of Rare, because honestly, for foreseeable future, our core business remains to be the owned hotels that we have in the tier 1 business destination. We like to report RevPAR rate occupancy from that portfolio. Otherwise, I think we will be sending mixed information to investors. Rare will recognize the commission, and we show that as a fee income.

Speaker #4: And we like to report Refire rate occupancy from that portfolio. Otherwise, I think we'll be sending information to investors. Rare will recognize the commission, and we'll show that as a fee income.

Speaker #5: That's right. So, in the future, this kind of asset-light model—we are also exploring more rooms and more hotels in that particular segment, or is it just kind of an experiment that you're doing?

Karan Gupta: That is okay. In future, this kind of asset-light model, we are also exploring more rooms or more hotels in that particular segment, or it is just the kind of the experiment that you are doing?

Speaker #4: No, I don't think—we won't call it an experiment. Anywhere where we deploy capital, it's not an experiment because it's been well vetted, well thought through.

Ashish Jakhanwala: No, I don't think we'll call it an experiment. Anywhere where we deploy capital, it's not an experiment because it's been well vetted, well thought through. Rare, when we actually signed the transaction in March at 66 or 67 hotels, that portfolio is now up to 75 hotels. We continue to see as we had highlighted during our call on Rare India in March, we continue to see that segment having significant potential to grow in terms of the asset base. Two, we also see that portfolio grow as distribution becomes stronger and we bring more revenue to the owners and obviously Rare India charges a commission. It's a business where we think there are, as I say, the beauty of asset-light is that the marginal income does not come at necessarily every time a marginal cost.

Speaker #4: Rare, when we actually sign on the sheet, or when we sign the transaction in March at 66 or 67 hotels, that portfolio is now up to 75 hotels.

Speaker #4: We continue to see, as we had highlighted during the call on Rare India in March, that segment having significant potential to grow in terms of the asset base.

Speaker #4: Two, we also see that portfolio grow as distribution becomes stronger and we bring more news to the owners. And obviously, Rare India charges a commission.

Speaker #4: So, it's a business where we think there are, as I say, you know, the beauty of asset-light is that the marginal income does not come at, necessarily, every time, a marginal cost.

Speaker #4: So we see that as the portfolio grows, and the revenue profile of the portfolio grows, the fee income that will accrue to Rare will be—I mean, there is no comparison to the past.

Ashish Jakhanwala: We see that as the portfolio grows and the revenue profile of the portfolio grows, the fee income that will accrue to Rare will be substantially different to what it has done in the past, really. There is no comparison to the past.

Speaker #4: It'll be substantially different from what it has done in the past.

Speaker #5: Okay. Last question on revenue potential or the margin profile that you can share?

Karan Gupta: Okay. Last question on revenue potential or the margin profile, if you can share quickly.

Speaker #4: Of?

Speaker #5: Of rare, only.

Speaker #4: Okay. So the revenue potential we've already given in the March presentation, which we think, once stabilized, will be about ₹100–120 crore of top line.

Ashish Jakhanwala: Of?

Karan Gupta: Of Rare only.

Speaker #4: At this point in time, I think we had highlighted a margin profile of around 35% to 50%, because there's a cost towards Marriott distribution. We'll continue to operate this at around that range. I think the EBITDA contribution from this should be about ₹35 to ₹40 crore.

Ashish Jakhanwala: Okay. Revenue potential, we have already given in the March presentation, which we think once stabilized will be about INR 100 to 120 crores of top line. We, at this point of time, I think, had highlighted a margin profile around 35% because there is a cost towards managed distribution. We look to operate this at around, I think the EBITDA contribution from this should be about INR 35 to 40 crores in the next, I would think year and a half, two years. Which is exactly the amount of investment we have been making in this portfolio. This portfolio should do a 100% NOI yield in about two years period. After that it will start producing returns.

Speaker #4: In the next, I would think, year and a half to a year—which is exactly the amount of investment that we're making in this portfolio.

Speaker #4: So, this hotel, this portfolio, should do a 100% NOI yield in about a two-year period. And after that, it'll start producing returns, you know.

Speaker #5: Okay. Thank you.

Speaker #2: Thank you. The next question is from the line of Viraj Mahadevia from MoneyGrow Asset. Please go ahead.

Karan Gupta: Okay. Thank you.

Speaker #3: Hi, Ashish. Just to carry on on the Rare point, given you mentioned that potentially much larger chargeability points with much lower capital employed, at steady state, do you think the Rare group could do double the ROCE of your consolidated Samhi, which is roughly around 10%?

Operator: Thank you. The next question is from the line of Viraj Mahadevia from MoneyGrow Asset. Please go ahead.

Viraj Mahadevia: Hi, Ashish. Just to carry on the RARE point. Given you mentioned that potentially much higher chargeability points with much lower capital employed. At steady state, do you think the RARE group could do double the ROCE of your consolidated SAMHI, which is roughly around 10%?

Speaker #4: So Raj, not double. It should probably do five times.

Speaker #3: Okay. Wow.

Speaker #4: Because again, I will highlight that the current business plan is that, you know, we have invested about ₹47 crore of total investment over a period of time.

Ashish Jakhanwala: Viraj, not double. It should do probably five times.

Viraj Mahadevia: Wow.

Ashish Jakhanwala: Again, I will highlight that our current business plan is that, we have invested about-

Speaker #4: A bunch of that is going into the company. Some of it is going to the existing shareholders, right? And, on a stabilized combination of the commission income and the fee income that we've now started seeing opportunities for—which is more than just the commission—should get this portfolio to ₹35 to ₹40 crore.

Nakul Manaktala: 47

Rajat Mehra: 47

Ashish Jakhanwala: INR 47 crores of total investment over a period of time. A bunch of that is going into the company. Some of it is going to the existing shareholders. On a stabilized combination of the commission income, combination of the fee income that we've now started seeing opportunities for, which is more than just the commission, should get this portfolio to INR 35, 40 crores EBITDA. There is no depreciation here, really. It is all funded through internal accruals. Effectively, there is marginal, very little depreciation, no finance cost. The flow-through from EBITDA to PBT is pretty much, I would think 95%.

Speaker #4: EBITDA—there is no depreciation here, really, you know. It is all funded through internal growth. Effectively, there is very little depreciation and no finance cost.

Speaker #4: So the flow-through from EBITDA to PBT is pretty much, I would think, 95% of EBITDA. And therefore, the raw fees on this should be—I don't think we would have done this for just 10 going to 20.

Viraj Mahadevia: Understood.

Speaker #4: Even our mature owned portfolio today is at about 18–19%. So, an asset-light investment should at least be 2 and a 2, 2, 2 and a 2, 2, 3. Otherwise, that distraction is not needed.

Ashish Jakhanwala: Therefore, the ROCE on this should be I don't think we would have done this for just 10 going to 20. Even our mature owned portfolio today is at about 18%, 19%. An asset-light investment should at least be two and a half, two to three times, otherwise that distraction is not needed. We clearly expect this portfolio to deliver 50%, 55% return on capital employed, largely because of how it's constructed.

Speaker #4: So, we clearly expect this portfolio to deliver a 50–55% return on capital employed, largely because of how it's constructed.

Speaker #3: Fantastic. My next question is for Ashish. There is a bit of a disconnect that I'm trying to reconcile: from Q1 last year to Q1 this year, revenue has grown by 7%, but EBITDA is actually flat or down by 4%.

Viraj Mahadevia: Fantastic. My next question is, Ashish, little bit of a disconnect that I am trying to reconcile. Q1 last year to Q1 this year, revenue has grown by 7%, but EBITDA is actually flat or down by 4%. That is the biggest driver of effectively your LBO that you are running within the SAMHI group, right? Because despite that, your PBT has grown at 25+%. What will course correct our EBITDA and really get it in growth mode over the next few quarters? If you could just give some clarity around that.

Speaker #3: Now, that’s the biggest driver of, effectively, your LBO that you’re running within the Samhi group, right? Because despite that, your PBT has grown at 25-plus percent.

Speaker #3: So what will cost-correct our EBITDA and really get it in growth mode over the next few quarters? If you could just give some clarity around that.

Speaker #4: This quarter, we tried kind of giving a bridge on slide number—no, no, no—slide number 30. So, quarter one FY20 had ₹9 crore of other income.

Ashish Jakhanwala: This quarter, we tried kind of giving a bridge on slide number 30. Q1 FY23, INR 9 crore of other income, which really-

Speaker #4: Which really was not an operating income. Which was not an operating income, which came to us because of the GIC transaction. Where there was one of the where an instrument got revalued, right?

Nakul Manaktala: Was not an operating income.

Rajat Mehra: Was not an operating income.

Ashish Jakhanwala: Which was not an operating income, which came to us because of the GIC transaction where-

Speaker #3: Right.

Speaker #4: So that's why, what you see is that the entire 9 crores also got added to the EBITDA of the prior quarter. So that's one distraction that you're seeing about what Rajat said—reported number.

Viraj Mahadevia: Understood

Ashish Jakhanwala: there was one of the, where an instrument got revalued.

Viraj Mahadevia: Right.

Ashish Jakhanwala: That's why what you see is that entire INR 9 crore also got added to the EBITDA of the prior quarter. That's one distraction that you're seeing about what Rajat said, reported numbers. That's why I think there's two important things to consider. One is negating the impact of that one-time last quarter. Second is also don't forget on a YOY basis, there's a GST impact of about INR 9 crore. Which will kind of at least a YOY comparison will get removed from Q3 onward. Interestingly, when you remove the last year one-time revenue recognition, which flew straight to EBITDA, straight to PBT actually.

Speaker #4: And that's, I think, two important things to consider. One is negating the impact of that one-time item last quarter. Second is, also don't forget, on a year-on-year basis, there's a GST impact of about ₹9 crore, right?

Speaker #4: which will kind of at least the YOY comparison will get removed from quarter three onward. Interestingly, when you remove the last year one time revenue recognition, which flew straight to EBITDA, straight to PBT pad actually, right?

Speaker #3: Correct. Correct. Correct.

Speaker #4: Which is sequential impact of that. And, and also the 9 crores of GST input tax credit loss if you were to kind of adjust for that, comparable hotel performance when you grew at about 11% and EBITDA grew at about 12, 12, 12 and a half percent, right?

Viraj Mahadevia: Correct.

Ashish Jakhanwala: impact of that. Also the INR 9 crore of GST input tax credit loss. If you were to kind of adjust for that comparable hotel performance only grew at about 11% and EBITDA grew at about 12.5%. Pretty decent performance for that. Q2, you will actually see the elimination of the one-time income in the prior period. It'll kind of help our EBITDA growth improve. Q3, the GST gets negated. We'll come back to the revenue and EBITDA numbers looking rational. Right now, they look totally irrational.

Speaker #4: So, pretty decent performance for that. In Quarter 2, you will actually see the elimination of the one-time income in the prior period, so it will kind of help our EBITDA growth improve.

Speaker #4: And in quarter three, the GST gets negated. So we'll come back to the revenue and EBITDA numbers looking rational. Right now, they look totally irrational, you know.

Speaker #3: Understood. Sorry, just one last question if I may. If we are targeting a 2.4 to 2.5 times net debt-to-EBITDA ratio by year-end, I was just doing some math.

Viraj Mahadevia: Understood. Just, sorry, last question, if I may. If we are targeting a 2.4x, 2.5x net debt to EBITDA by year-end, I was just doing some math. It's roughly INR 550 odd crore of EBITDA versus Q1, we've done about INR 100 crore. We have about INR 150 per quarter to go for the next quarters to land at that sort of outcome. Does that sound achievable and reasonable?

Speaker #3: It's roughly ₹550-odd crores of EBITDA. Versus Q1, we've done about ₹100 crores. So we have about ₹150 crores per quarter to do for the next quarters to land at that sort of outcome.

Speaker #3: Does that sound achievable and reasonable?

Speaker #4: No, we didn't say 2.5 times by the end of FY27. We think we'll get there by FY28, both because of EBITDA—actually, largely on account of stable net debt and growth in EBITDA, Viraj, to be honest with you.

Ashish Jakhanwala: No. We didn't say 2.5x by the end of FY27. We think we'll get there by FY28, both because of EBITDA. Actually, largely on account of stable net debt and growth in EBITDA, Birendra, to be honest with you.

Speaker #3: Right. Okay, understood. Thank you. All the best.

Speaker #2: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant.

Viraj Mahadevia: Right. Okay. Understood. Thank you. All the best.

Ashish Jakhanwala: Thank you.

Operator: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Bharat Jiagnani from MC Research. Please go ahead.

Speaker #2: The next question is from the line of Bharat Jianani from MC Research. Please go ahead.

Operator: Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Bharat Jiagnani from MC Research. Please go ahead.

Speaker #5: Yes, sir. Thank you for the opportunity. Sir, the first question is on the enabling resolution that we have taken, and you highlighted the comments that we are going to do this every year.

Bharat Jiagnani: Yes, sir. Thank you for the opportunity. Sir, the first question is on the enabling resolution that we have taken, and you highlighted the comments that we are going to do this every year. While it may be good from, it will give you comfort to be prepared for an acquisition, it does not really go down from an investment standpoint because the overhang of equity dilution and related impact on the stock price does not go well with the investors if you especially do it every year. Just wanted to check that. Secondly, you also have a platform, especially for the upscale hotels for GIC as well. Probably, if you have the opportunity from the GIC side, again, you have an enabling resolution. It does not give a very comforting sign to the investor.

Bharat Gianani: Yes, sir. Thank you for the opportunity. Sir, the first question is on the enabling resolution that we have taken, and you highlighted the comments that we are going to do this every year. While it may be good from, it will give you comfort to be prepared for an acquisition, it does not really go down from an investment standpoint because the overhang of equity dilution and related impact on the stock price does not go well with the investors if you especially do it every year. Just wanted to check that. Secondly, you also have a platform, especially for the upscale hotels for GIC as well. Probably, if you have the opportunity from the GIC side, again, you have an enabling resolution. It does not give a very comforting sign to the investor.

Speaker #5: So, well, it may be good from—it will give you comfort to be prepared for an acquisition. But then, it does not really, you know, go down well from an investment standpoint because the overhang of, you know, equity dilution and related impact on the stock price does not go well with investors, especially if you do it every year.

Speaker #5: So, I mean, just wanted to check that, you know—and secondly, you also have a platform especially for the upscale hotels for GIC as well.

Speaker #5: So probably, you know, then, if you have the opportunity from the GIC side, and then again you have an enabling resolution, so it, it, you know, does not give a very, you know, comforting sign to the investor.

Speaker #5: So, just wanted to check on that point. And if at all, if you were to utilize the funds, since it is, you know, a mix of equity and debt, tentatively what would be the equity and the debt proportion if, if ever, you were to utilize the resolution?

Bharat Jiagnani: Just wanted to check on that point, if at all, if you were to utilize the funds, since it is a mix of equity and debt, tentatively what would be the equity and the debt proportion if ever you were to utilize the resolution for growth? The second point is that considering that if we utilize the funds for acquisition, obviously that's the business model. Comparatively, acquisitions have become costlier since the hotel owners are demanding a lot of money nowadays. How do you think about the return on capital employed in that case? Thanks.

Bharat Gianani: Just wanted to check on that point, if at all, if you were to utilize the funds, since it is a mix of equity and debt, tentatively what would be the equity and the debt proportion if ever you were to utilize the resolution for growth? The second point is that considering that if we utilize the funds for acquisition, obviously that's the business model. Comparatively, acquisitions have become costlier since the hotel owners are demanding a lot of money nowadays. How do you think about the return on capital employed in that case? Thanks.

Speaker #5: for growth. And the second point is that, considering that, if we, you know, kind of utilize the funds for acquisition, obviously that's a business model.

Speaker #5: But, com but comparatively acquisitions have become, you know, costlier, since the hotel owners are demanding a lot of, money, nowadays. So, how do you think about, the return on capital employed, in that, in that case?

Speaker #5: thanks.

Speaker #4: Okay, Bharat. A lot of questions. Let me try and split them and try and answer. So first is about the practice and, you know, any potential anxiety or overhangs.

Ashish Jakhanwala: Okay, Bharat. A lot of questions. Let me try and split them and try and answer. First is about the practice and any potential anxiety or overhang. I think we have checked, and there are quite a few precedences of companies which operate in a capital-intensive business to keep such provisions and flexibility available to its board members, right? I think to that extent, we don't see this as anything negative, but only, as I repeat, keep the board and the company fully prepared to act in time if there is such need, right? That's important, and it's more important for capital-intensive businesses, and more important for companies which are headed into a massive CapEx cycle, and for companies operating in sectors which tend to respond fairly quickly to global uncertainties.

Speaker #4: I think we have checked, and there are quite a few precedents of companies which operate in a capital-intensive business to keep such provisions and flexibility available to their board members, right?

Speaker #4: So I think to that extent, we don't see this as anything negative, but only as, I repeat, keeping the Board and the company fully prepared to act in time if there is such a need, right?

Speaker #4: So that's important, and it's even more important for capital-intensive businesses. It's especially critical for companies heading into a massive CapEx cycle, and for companies operating in sectors that tend to respond fairly quickly to global uncertainties.

Speaker #4: So, to put all of that together, I think people should draw comfort from the fact that the management and the Board, first, have the ability and, second, have the intent to protect the balance sheet over everything else.

Ashish Jakhanwala: Put all of that together, I think people should draw comfort from the fact that the management and the board, A, have the ability, two, have the intent to protect balance sheet over everything else. That's part one. Part two, Bharat, I cannot answer about the mix because, as I said, this is an enabling resolution. We haven't really done any work or met investors or deliberated about all of that. As and when the need arises or the board deliberates this, only then we can really comment on size, scale, structure. Three, I think in terms of acquisition opportunities, Bharat, I am not worried because we've always said that we're buying hotels which have an operational distress. Operational distress, I kind of acknowledge that tends to be less in up cycles than in down cycles.

Speaker #4: So that's part one. Part two, Bharat, I cannot answer about the mix because, as I said, this is an enabling resolution. We haven't really done any work or met investors or deliberated about all of that.

Speaker #4: So, you know, as and when the need arises or the board deliberates this, only then can we really comment on size, scale, or structure. Third, I think in terms of acquisition opportunities, Bharat, I am not worried because we've always said that we're buying hotels which have operational distress.

Speaker #4: An operational distress, I kind of acknowledge, tends to be less in upcycles than in downcycles. But nevertheless, we've been able to find opportunities at the peak of the cycle in some of our most attractive markets, like Bangalore Whitefield or High City or the heart of Noida.

Ashish Jakhanwala: Nevertheless, we've been able to find opportunities at peak of the cycle at some of our most attractive markets like Bangalore by Whitefield or Hyderabad City or Heart of Noida. If you see in the last 3 years, the sort of opportunities that we've secured for the company, they all follow the theme that we've followed for the last several years, and yet at a time when one would expect the markets to be really at a peak, right? We are not worried about continuing to see opportunities where our efforts of renovation, rebranding, asset management can create an operational turnaround and create value for our shareholders. That's the part two of your question, and I think those were the two main questions. Apologies if I missed any. Happy to address them.

Speaker #4: So, if you see in the last three years, the sort of opportunities that we've secured for the company, they all follow the theme that we've followed for the last several years.

Speaker #4: And yet, at a time when one would expect the markets to be really at a peak, right? So we are not worried about continuing to see opportunities where our efforts of renovation, rebranding, and asset management can create an operational turnaround and create value for our shareholders.

Speaker #4: So that's the part two of your question, and I think those were the two main questions. Apologies if I missed any. Happy to address them.

Speaker #5: Okay, sir. Thanks for the question.

Speaker #4: Thank you, Bharat.

Speaker #2: Thank you. The last question for the day will be from the line of Ashish from Leo Capital. Please go ahead.

Bharat Jiagnani: Okay, sir. Thanks for the answer.

Bharat Gianani: Okay, sir. Thanks for the answer.

Ashish Jakhanwala: Thank you, Bharat.

Speaker #5: Thank you for taking my question. So, I have one major question split into two parts. Can you give an update on the status of the Navi Mumbai projects?

Operator: Thank you. The last question for the day will be from the line of Ashish from Leo Capital. Please go ahead.

[Analyst] (Leo Capital): Thank you for taking my question. I have one major question split into two parts. Can you give an update on the status of the Navi Mumbai projects? Are there any approvals which are awaited that could derail the project at this point? What were the earlier issues with regards to that project, and are they fully resolved as of now? That's the first part.

Speaker #5: Are there any approvals which are awaited that could derail the project at this point? What were the earlier issues with regards to that project?

Speaker #5: And are they fully resolved as of now? That's the first part.

Speaker #4: Yeah, sure. So, no issues on Navi Mumbai. All the issues that we had reported, I think two years back, are fully resolved. Absolutely no issues.

Speaker #4: The project is moving in two directions—actually, three directions—at this point in time. The first direction is statutory approvals, which are moving quite well.

Ashish Jakhanwala: Yeah, sure. No issues on Navi Mumbai. All the issues that we had reported, I think 2 years back, are fully resolved. Absolutely no issues. The project is moving in two directions, actually three directions at this point of time. The first direction is statutory approvals, which are moving quite well. We expect to receive the first set in the next few months or so. The second is design development, and I think in the next quarter, we will be able to present a substantial part of that as well. The third part is really talking to construction firms about the construction technology. Because this being a large project, we need to be well-prepared about deploying technologies that can help us expedite delivering this very large project. On all three fronts, we are making really good progress.

Speaker #4: We expect to receive the first set in the next few months or so. The second is design development. And, you know, I think in the next quarter we will be able to present a substantial part of that as well.

Speaker #4: And the third part is really talking to construction firms about the construction technology, because, you know, this being a large project, we need to be well prepared about deploying technologies that can help us expedite delivering this very large project.

Speaker #4: So on all three fronts, we are making really good progress. And I will assure everybody that there are no, quote-unquote, concerns or issues regarding approvals or authorities at this point in time.

Ashish Jakhanwala: I will assure everybody that there are no "concerns or issues" with approvals or authorities at this point in time.

Speaker #5: Could you give a sense on the timeline for the completion of this project, and by when do you expect the capital investments for this project to begin?

Ashish Jakhanwala: I will assure everybody that there are no "concerns or issues" with approvals or authorities at this point in time.

[Analyst] (Leo Capital): Could you give a sense on the timeline for the completion of this project? By when do you expect the capital investments for this project to begin?

Speaker #4: So, Ashish, we were originally planning to be on site before this, so we were expecting to be on site and hit the ground by the end of this fiscal year.

Ashish Jakhanwala: Ashish, we were originally planning to be on-site. Jana? Q4. We were expecting to be on-site, hit the ground by end of this fiscal year. Let's assume to be on the safe side, 1 April 2027 is when we hit the ground. Honestly, I would give ourselves between 3 years to 4 years to deliver this hotel, given the size and the scale. That's really the timeline that we see for ourselves, really. In line with what we have indicated to all of you.

Speaker #4: So, let's assume, to be on the safe side, that April 1st, 2027, is when we hit the ground. And honestly, I would give ourselves between three to four years to deliver this hotel, given the size and the scale.

Speaker #4: So that's really the timeline that we see for ourselves, really, and in line with what we have indicated to all of you. So, yeah.

Speaker #4: So we remain quiet. Correct. We remain on time right now. Indications are that we should be hitting the ground by 1st April. I will repeat, unlike many other projects, given the size and scale of this project, the development approach needs to be very different.

[Analyst] (Leo Capital): That's fine.

Ashish Jakhanwala: Yeah. We remain quite correct. We remain on time right now. Indications are that we should be hitting the ground by 1 April. I will repeat, unlike many other projects, given the size and scale of this project, the development approach needs to be very different, more scientific. Prep time will be longer. It will help us really shorten the time on-site, which is when majority of the capital is deployed. Third point, which is really important, Ashish, is even though the project will need a large pool of capital, through FY28 it will be much lesser because that is going to be largely towards the civil RCC structure. The main part of capital investment in this project will start in FY29, FY30, which is when we head into finishing and engineering installations.

Speaker #4: More scientific. So, prep time will be longer, but it will help us really shorten the time on site, which is when the majority of the capital is deployed.

Speaker #4: Third point, which is really important, Ashish, is even though the project will need a large pool of capital, through FY28, it will be much less because that's going to be largely towards the civil—RCC—structure.

Speaker #4: The main part of capital investment in this project will start in FY29 and FY30, which is when we head into finishing and engineering installations, right?

Speaker #4: Through FY28, the investment in this project will remain rather small, and therefore it matches with our current cash flow statements.

Ashish Jakhanwala: Through FY28, the investment in this project will remain rather small, therefore it matches with our current cash flow statements.

Speaker #5: Thank you, sir. And best of luck.

Speaker #4: Thank you so much, Ashish.

Speaker #2: Thank you. Ladies and gentlemen, that was the last question for the day. And now, I hand over the conference to Mr. Ashish Jakanwal for closing comments.

[Analyst] (Leo Capital): Thank you, sir, and best of luck.

Ashish Jakhanwala: Thank you so much, Ashish.

Operator: Thank you. Ladies and gentlemen, that was the last question for the day. Now I hand over the conference to Mr. Ashish Jakhanwala for closing comments.

Speaker #4: Thank you, everyone, for your patience and belief in Samhi. I will reiterate the fact that, in spite of what one would consider as a very unfair external environment, both Samhi and the sector we operate in remain fairly resilient.

Ashish Jakhanwala: Thank you everyone for your patience and belief in Samhi. I will reiterate the fact that in spite of what one would consider a very uncertain external environment, both Samhi and the sector we operate in remain fairly resilient. That resilience gives us the confidence to keep pursuing the growth that we've invested in. With that, we remain fairly excited about the fact that Samhi is destined to at least multiply its revenue by two and a half times, which is the path we've given of going from INR 1,200 crores to INR 3,000 crores. With that, I'd like to thank you all and talk to you again soon.

Ashish Jakhanwala: Thank you everyone for your patience and belief in SAMHI. I will reiterate the fact that in spite of what one would consider a very uncertain external environment, both SAMHI and the sector we operate in remain fairly resilient. That resilience gives us the confidence to keep pursuing the growth that we've invested in. With that, we remain fairly excited about the fact that SAMHI is destined to at least multiply its revenue by two and a half times, which is the path we've given of going from INR 1,200 crores to INR 3,000 crores. With that, I'd like to thank you all and talk to you again soon.

Speaker #4: That resilience gives us the confidence to keep pursuing the growth that we've invested in. And with that, we remain fairly excited about the fact that Samhi is destined to at least multiply its revenue by two and a half times, which is the path we've given of going from ₹1,200 crore to ₹3,000 crore.

Speaker #4: And with that, I'd like to thank you all and speak to you again soon.

Operator: Thank you. On behalf of Samhi Hotels Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Operator: Thank you. On behalf of SAMHI Hotels Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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Q1 2027 Samhi Hotels Ltd Earnings Call

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