Samhi Hotels Limited has informed the Exchange about Transcripts of Business Update Call held on Thursday, 24th April 2025 at 11:00 a.m. IST to discuss the strategic partnership of the Company with GIC for an upscale & hotel investment platform in India, as enclosed for your information & records.
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On the reaction day the stock moved 0.1 pts more than Nifty Microcap 250 and 0.6 pts more than its Hotels & Resorts peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Samhi Hotels announced a strategic partnership with GIC, where GIC will acquire a 35% stake in three of Samhi's subsidiaries (Courtyard & Fairfield by Marriott Bangalore ORR, Hyatt Regency Pune, and Trinity Hotels Bangalore Whitefield) for a total investment of Rs. 752 crores. The deal values the three subsidiaries at approximately Rs. 2,200 crores, based on a trailing 12-month EBITDA of Rs. 133.8 crores. Of the investment, Rs. 603 crores will come upfront for debt reduction, while Rs. 149 crores will be deployed over two years toward the Westin & Tribute Portfolio capex in Bangalore Whitefield. The transaction is expected to reduce group debt by Rs. 580-600 crores, lower net debt-to-EBITRA to below 3.5x at closing and below 3.0x within 12 months, and deliver a 15-20% upside in reported PAT. Samhi will also earn a 4% asset management fee on the platform's EBITDA, adding a new recurring revenue stream. The platform has first right of offer on all future upscale hotel opportunities, with a $300 million total platform commitment, of which GIC's share is about $105 million.
This is a significant positive development for shareholders — it eases balance sheet concerns, brings in a high-quality global investor as partner, reduces leverage meaningfully, and adds a new fee-based income stream. The 15-20% PAT accretion, lower interest costs (expected to fall from 9.4% to under 9%), and a clear deleveraging path to 2.5x should support stock sentiment, though 35% profit-sharing via minority interest partially offsets the upside.