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Transcripts of Q1 FY27 Earnings Conference Call

Dear Sir/ Madam,

Please find enclosed the transcripts of the Q1 FY27 Earnings Conference Call with the

Investors or Analysts held on Tuesday, 04" August 2026 at 10:30 a.m. (IST).

You are requested to kindly take the same on your records.

Thanking You.

Yours faithfully,

For SAMHI Hotels Limited

Sanjay Jain

Senior Director - Corporate Affairs,

Company Secretary and Compliance Officer

Encl.

As above

Correspondence

wiww.samhi coin

HI

SMART HOTEL INVESTMENTS

MANAGEMENT

MR. ASHISH JAKHANWALA — MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER

MR. RAJAT MEHRA — CHIEF FINANCIAL OFFICER

MR. GYANA DAS — EXECUTIVE VICE PRESIDENT & HEAD (INVESTMENTS)

MR. NAKUL MANAKTALA — SENIOR VICE PRESIDENT (INVESTMENTS)

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SMART HOTEL INVESTMENTS

SAMHI Hotels Limited

August 04, 2026

Ladies and gentlemen, good day and welcome to the Q1 FY 27 Earmings Conference Call of

Moderator

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 uncertaintics that are difficult to predict

As a reminder, all participant lines will be in the 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 “** then “0” on your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Ashish Jakhanwala — Managing Dircotor and Chief

Exceutive Officer of SAMHI Hotels Limited. Thank you, and over to you, sir.

Good morning, everyone, and welcome to SAMHI Hotels QIFY27 Earnings Call. Thank you

Ashish Jakhanwala

for taking the time to join us today.

Tam joined by our Chief Financial Officer — Rajat Mchra, ow Exccutive Vice President and

Head of Investments — Gyana Das, and Nakul Manaktala — our Senior Vice President of

Investments. Our investor relations partners, Strategic Growth Advisors, are also on the call.

‘We have uploaded our QIFY27 Financial Results, Investor Prescntation, and the Excel Sheet on the Exchanges and on the website, and I hope everyone has 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 dircetly to why we have built SAMHI the way we have.

We are a firm belicver 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 Quarter 1. Nt office absorption across our core markets was approximately 11 million square feet during the quarter, on top of approximately 58 million square fect for the whole Financial

Year 2026. Leasing momentum across 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 carly in the quarter as the geopolitical situation escalated, and more so because of the limitations of the Gulf carricrs. But the latter haolf tfhe quarter saw a clear recovery, and Quarter 1 FY 27 passenger traffic came in essentially flat year-on-year for the quarter as a whole.

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August 04, 2026

A good illustration of how quickly underlying travel demand in our markets reasserts ifself once a disruption passes.

Against that backdrop, our own operating metrics were strong. Same-store RevPAR grew 9.6% year-on-year to approximately Rs. 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% oft he room nights we sold, up from 78% a year ago. This more resilicnt domestic cohort s 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 Raat to take you through the Quarters Financial Performancien detail, and I will come back to you to talk through our growth pipeline.

Over to you, Rajat.

Rajat Mehra

‘Thank you, Ashish. Good momning, 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 FY2027 was Rs. 308.3 crores, which was on a reported basis up 7.3% on a year-on-year basis. However, ther is approximately Rs. 9.3 crores of one-time other income that was includeidn our Q1 FY2026 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 included same-store growth of approximately 9.1%, and the balance came from the new openings last year.

Similarly, Q1 FY 2026 base also included approximately Rs. 2.1 crores as a one-time expense related to the GIC transaction, which reduced the reported EBITDA for that quarter:

Operating expenses in Q1 FY2026 include an approximate impact of Rs. 9.2 crores from the changien 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. Therefore, 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 25.5% on a year-on-year basis to Rs. 37.7 crores, resulting in a PBT of Rs. 32.7 croes, up by 26.4% over the same period last year.

Net debt as on June 30th, 2026, was approximately Rs. 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

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August 04, 2026 assets excluding the capital deployed towards growth. Our cffective interest rate is at 7.8%, approximately 300 basis points lower than that at the time of our [PO.

Our credit rating remains A+ (stablo), 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 forceast to gencrate a cumulative cash flow of more than Rs. 3,000 crores (incorrectly mentioned Rs.2000 Crores on the call) over a period of FY2027 - FY2031. This enabled us to fund our committed growth CAPEX 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. But as we promised, the balance sheet nceds to remain strong imespective of cither the two or both playing out. So, it is critical that the Board has the flexibility to act in time, and therefore we are enabling resolution for a capital raise during this mesting. Although the business actually stands very well capitalized as we speak.

With that, let me hand over the word back to Ashish.

Thanks, Rajat.

Ashish Jakhanwala

So, this operating performance that Rajat just spoke about, which s largely anchored around the

9% same-store RevPAR growth and also around the same level of total revemue growth for the same store assets, has remained within our cxpected long-term revenue growth forecast of 9%-

11%, even with repeated headwinds. This is very reassuring and allows usto focus on the growth ahead. We are excited about the strong growth pipeline we have sccured across citics such as

Hyderabad, Bangalore, Chennai, Noida and Navi Mumbai, and with marquee brands such as

TheW, Westin and the Marriott. This will decpen our preseinn ckeey office and aviation markets and allow us to benefit from the urbanization trends and opportunities that India offers.

It s also 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 carned almost 4x in revenues what our midscale hotels camed on a per key basis. This is exactly why our portfolio mix matters. Most of the 1,660 rooms across seven 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. And 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 sine 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.

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August 04, 2026

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 Quarter 1.

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 ceonomics will come from three

sources

e The fee income from the business it gencrates for ifs hotel partnars.

« Additional incentive fee in select hotels.

© Andselective opportunistic investments.

One such being an 8 acres estate in Uttarakhand that we have opportunity to acquire for around

Rs. 12 crores. This was a RARE hotel; the owner wanted to dispose of as they were leaving the country. We find such opportunities to be attractive. The entry capital is low relative to the asset potential, and much of the value creation will come from the RARE model itsclf. So, 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 retum ratio seems to be attractive, opportunity is scalable, and the

RARE platform gives us a sectoral knowledge and talent pool.

In summary, our expectation from the market is modest, 9%-11%. We have delivered that for several quarters despite headwinds. Our portfolio growth is promising, both in seale and in terms of segments we are growing, allowing us to materially strengthen our core business in urban centers, and 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.

Thank you very much. We will now begin the question-and-answer session. The first question

Moderator

s from the line of Karan Khanna from Ambit Capital. Please go ahead.

Thanks for the opportunity. Two questions from my side, Ashish. Firstly, can you talk a bit more

Karan Khanna

about the Itmenaan Estate acquisition in Binsar, Almora? While the reviews appear quite strong on Booking.com, TripAdvisor, ctc., but ifI look at the revenue performance for past few years, it has been fairly ordinary. More importantly, with RARE India and now Itmenaan, you have alrcady deployed Rs. 60 crore towards Leisure as a segment and with further expansion at

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August 04, 2026

Itmenaan, 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 cvaluating.

Thank you, Karan. So, in terms of performance, you are absolutely right. The performance of

Ashish Jakhanwala

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 statc of being kept operational but not really secing any active marketing. It also had gotten delisted from RARE for a period oft ime and will now get relisted. So, 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 Rs. 20,000-Rs. 40,000. And We feel with the combination of

RARE and potentially Outdoor Collcetion by Mariott Bonvoy and the unique asset that

Ttmenaan itself is, it should reclaim that price positioning, and thercfore it will reflect in the financials also. That's part one.

Part two in terms of capital allocation. I think, Karan, it fair to say that we like the RARE story as asset-light. That's why we invested in it and 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 Rs. 47 crores. Now with Itmenaan, which is an add-on, it's about Rs. 60 odd crore, right? If you take a four or five-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%=. 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 seck 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 rates they produce are totally disconnceted.

If you take a core business hotel, there is a kind ofa correlation between segment, cost per square feet and the average room. The hotels we have scen 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 its carly days, that the value it will create for the sharcholders will be disproportionate. I think we need to be clear that the amount of capital they will suck up today and in the fsture may not really pass the zip code of around 10%-12%.

Secondly, and lastly, if you look at the RevPAR performance, it appears ARRs were largely flat

Karan Khanna

on a year-over-year basis. There was 2 or 3 percentage point improvement in that, but as for the rest of FY 2027, when you think about growth, how much of that is being penciled in via ARRs and how much of that will be oceupancy-led? And also for July, have you scen a sharp recovery in July or are trends similar to what you had scen last quartar?

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August 04, 2026

Ashish Jakhanwala

Tiwo points. One is how do we see FY 2027 growth structured in terms of rate versus occupancy.

Ithink, Karan, in the first six months, you will sce occupancy driving the total revenue growth and occupancy continues to remain extremely-extremely robust. If you had asked me five years back, can you underwite a 79% oceupancy for a business hotel portfolio? I myself would have been reluctant, and I am sure you and I had this conversation some time back, right? But today it's casy to underwrite seventics, carly cighties occupancy for business hotels. Having said that, don't forget that the domestic share of oceupancy 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. As towards H2, we rebalance the domestic versus intemational, that rate growth has automatically come to our portfolio. That's part one.

Pat two, I will give you the answer, butI will also caution that one month is never representative of cither a quarter or the balance of the year. July has been quite strong. And I will not want to give specific numbers because we have 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 quatter. Also, we are sceing a growth in rate now, which we had not seen in Quarter 1. The trends that we are seeing are quite encouraging. Karan, [ will caution everybods, it's one month oft he three months of this quarter, and we still have cight more months to go before we end this year.

Sure. That's it. I will come back in the queuc for any follow-ups.

Karan Khanna

Thank you, Karan.

Ashish Jakhanwala

Thank you. The next question s from the line ofJ inesh Joshi from Prabhudas Lilladher Capital.

Moderator

Please go ahead.

Sir, my question is on RARE. I think we have mentioinn ethde presentation that out of 75 hotels,

Jinesh Joshi

roughly about 40 hotels have agreed to be a part of the Marriott Outdoor Collection program.

Now given the parentage, Were we expecting the number to be in this trajectory? Also, what could be the reason for ot signing to the Marriott program 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?

So, Jinesh, actually, the sign-ups are far ahead of our own expectation when we had done the

Ashish Jakhanwala

transaction. It's nothing to do about them liking or not. It's about the pace. So, a bunch of reasons will relate to this. One is some of those hotels were on other platforms. We obviously don't want to interrupt existing contracts that any parties may have. So, we are very mindful oft hat. There s about 10 or 12 hotels which currently are on ofher platforms, and they will make their own decisions to be on Martiott Bonvoy. And for the balance, I think it's about just getting in touch with the owners, explaining benfit analysis, doing a bit ofa property review to understand what wildlife safety measures need to be taken. Its just a time and a process. But, I think in terms of

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August 04, 2026 the level of participation, the level of confirmations that we have received is a lot more encouraging than what we had anticipated originally:

Sure. Sit, just to understand this right, if a hotelier is on a RARE platform, does it imply that he

Jinesh Joshi

cannot be on any other OTA? I that understanding correct or?

Ashish Jakhanwala

No. 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 RARE hotels, including the ones which will go on Outdoor

Collection at their own discretion, can or cannobte on OTAs. There's no restriction to that. When

Ttalk about other platforms, I am talking about platforms like Mr & Mrs Smith which are very similar to Bomvoy. Because ofit 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. So, we will allow those owners to take their own calls. We are focusing on the hotels which are currently unaffiliated with similar platforms. OTAs, there is no issue.

Understood. S, one last question from my side, and it pertains to the fundraise. I know this is

Jinesh Joshi

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-cnded and given the fee cash gencration that we are sceing, which implies a limited funding need in the near term, any specific reason to go ahead and take this resolution of Rs. 750 crore?

Jinesh, I think like Rajat articulated, there arc three or four things we need to be mindful of.

Ashish Jakhanwala

Number one is that in starting last year with Operation Sindhoor, IndiGo crisis, Middle East crisis, every quarter we have seen something that would have been termed as unpleasant, would have been termed as unexpected. I think what's very heartening s 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 ofa larm 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. You put the two together and offen companics are motivated to let the financial discipline be diluted. We have that one promise that we will never violate, which is of 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. And therefore, 1 would think not just this year, you would sce every year we will take an cnabling 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.

Sure, sir. Thank you so much, all the best.

Jinesh Joshi

Thank you, Jincsh.

Ashish Jakhanwala

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August 04, 2026

Thank you. The next question is from the line of Vikas Ahuja from Antique Stock Broking.

Moderator

Please go ahead.

Vikas Ahuja

Yes. Hi. Good morning and thank you for taking my question. My first question s, Ashish, ifT look at the ADR growth, since we have listed, it's the lowesitn last two quarters. We have scen,

Ithink last quarter was flat and this quarter it's close to 2.6-2.7. Compared with the carly double- digit growth we were witnessing,is it primarily because of the West Asia disruption and we have more ofa Marriott-led inventory? Andjust to add on, if1 look at the occupancy, it's now touching almost 79%. So, is it more ofa tactical play like we are just trying to because the travel is little muted, especially in the Southern citiesW?e are just trying to have lower rate and trying to bump up the occupancy.

Vikas, I think a couple of things. A 79% capacity utilization or oceupancy indicates anything but

Ashish Jakhanwala

avery strong and resilient demand environment. Okay. I would actually seck comfort in that umber, 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 intermational business travel or international inbound travel, is leading to the rate growth being slightly soft. Having said that, I think we have always remained clear that we focus more on total revenue growth because operators will take their own decisions quarter-on-quarter about yiclding the assets, sometimes through oceupancy, sometimes through rate. And 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. The same sct of hotels last year versus same sct of hotels this year, the total revenue growth was around 9%-0.5%. That remains squarely in the zip code of 9%-11% that we. have guided for the long term. T must confess that what we need to deliver our business plan, which is Rs. 3,000 crore of frec cash, a lot of growth CAPEX, and the revenue growing 2.5% from where they were last year to where they should be in the next four to five 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 rate because of the inbound but as I said carlicr, both when that crisis starts to stabilize, [ am not even using the word the crisis gets resolved, because honestly, we have seen the Russia-Ukraine war hasn't resolved. So long as the crisis stabilizes and the world gets used to it and we move into H2, I think you will start seeing some of that growth coming too through rate. As I was responding to Karan's questions carlicr, in July, we have already seen that starting to play out. Again, I will repeat my caution that one month is not representative of the balance cight months that have to come. But in July, we have scen the total revenue growth split between half rate and half occupancy.

So, I think, Vikas this quarter-on-quatter revenue management, we should remain focused on two or thre things. One is total revemue growth, especially same store, and where the margin profile is heading. T am sure somebody will at some point ask that question, otherwise we will address it, that we also sce the margin profile significantly improving. A) because of the GST impact, B) we had some of the new openings last year in the Holiday Inn Express platform. C)

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August 04, 2026 of course, the fact that increasing share of upseale will boost our margin because they don't get affected by GST, Those are two or three parameters that we track very closely. Yes, we will keep you updated as we sce the rate growth come in H2.

Vikas Ahuja

Sure. That's helpful. Actually, sorry to ask the question again on this fundraising, but I am just rying to understand because I remember in last Analyst Day, we did talk about investment surplus of Rs. 17,000 mn (incorrectly mentioned 1,700 billion on the call). I think at that time the growth guidance was little higher, and it has come down for all the known reasons. But why we ar talking about equity-led dilution and not taking an enabling resolution for debt instead.

Thank you.

Enabling resolution is for almost everything. I will repeat that it just an cnabling resolution to

Ashish Jakhanwala

althle Booarwd to act in time. Vikast,o 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 sct. I think we need to be prepared to respond to both problems if we continuteo sce them or opportunitics that we don't know about today. But what I think this management is very clear is not we will take a chance on is leading growth or getting into problems without a well-capitalized balance shect. So, 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.

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

Vikas Ahuja

Thanks, Ashish. Wish you huck for the next quarter. Thanks.

Thank you. The next question is from the line of Shrinjana Mittal from MS Capital. Please go

Moderator

ahead.

Hi. Thanks for the opportunity. Am I audible?

Shrinjana Mittal

Ashish Jakhanwala

Yes, you are.

You mentioned that the rate growth was slower in this quarter. But if I look at segment-wise, I

Shrinjana Mittal

sce that upper upscale, the mate growth was slightly softer than mid-scale and what we would usually expect from the segments, right? So, what I am trying to understand is there a pattern that you expect to sce that when the overall demand softens, the upper upscale tends to

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August 04, 2026 underperform a lttle bit because there is some sort of downtrading which is happening? That is my question.

So, RevPAR, you would sce softer in the upscale. Actually, the raw average room rate was in

Ashish Jakhanwala

that zip code of 3.5%-4% for all the segments. There is no disparity. But 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 oceupancy levels. So, if you sce, my upper upscale portfolio was at 78.4%, whereas the mid-scale portfolio delivered 81.3% occupancy. Also, what we need to bear inmind s last year, same quarter, the oceupancy levels for the upscale was about 74%, but for the mid- scale it was 73.8%. So, year-on-year, that portfolio has made a really good improvement.

Actually, I don't recollect if we discussed this in the past, but we did cnumerate that for FY 2027 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, and we are very happy to report that in the 1st Quarter it has delivered as we thought it would. That's why you sec it's growing disproportionately. Second, there was a part of our portfolio, which we felt had underperformed in FY 2026, early indications are that part of the portfolio is performing really, really strong. That's why we remain fairly bullish that Quarter 1 is only a start, and the carly trends that we are seeing for Quarter 2 and beyond arc actually far ahead of what we delivered in Quarter 1.

Understood. That's very clear. Just one more question on the GST impact. This quarter, its little

Shrinjana Mittal

above 2% So, 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?

That's right. As you geta litle bit of larger mumber of rooms being sold below 7.5, what happens

Ashish Jakhanwala

is your GST impact enlarges in that quarter. Typically Quarter 1, Quarter 2, you see volume- driven growth in any case in the scctor, and you will sce larger GST impact. From Quarter 3, interestingly, at least on a yeat-on-year 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 will be lesser in H2 than in H1.

Right. It would be closer to 2%.

jana Mittal

That's right.

Ashish Jakhanwala

Yes, understood. Thanks for taking my question, and all the best, Thank you.

Shrinjana Mittal

Thank you so much.

Ashish Jakhanwala

Thank you. The next question is from the line of Vaibhav Muley from Haitong India Securitics.

Moderator

Please go ahead.

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August 04, 2026

Hi. Thank you for taking my question. Congratulations on the good set of numbers, sir. My first

‘Vaibhav Muley: 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 aroun4d% growth year-on-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.

Very good question, Vaibhav. What we have scen as a trend is that international ravelers tend to

Ashish Jakhanwala

be higher spenders on food and beverage, especially in our upscale scgment. We clearly have seen the business mix move from almost 78%-79% domestic to 80%-83% domestic and a large bulk of that, henestly, I am talking about portfolio-wide. This data would be cven more stark if we were just to restrict ourselves to upper upscale. Sceond is we had a renovation in on 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 cvents in June, which got moved to July and August. So, combination of these three has led to around a 3.5%-4% F&B growth against the 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 will sce that coming back.

Al right. Second question, sir, on the GIC investment. You mentioned in the morning that you

‘Vaibhav Muley: are evaluating a partnership with GIC for some of the new opportunitics that SAMHI is missing.

Can you highlight a bit more about this in terms of which asscts are you looking at that GIC as

10% incremental CAPEX and also if you can highlight if any partnership that you are evaluating for existing assets.

Okay. Second is easicr. We are not cvaluating any partnership for existing assets at this point of

Ashish Jakhanwala

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 have signed since our GIC TV s really the IKEA, the Ingka opportunity in Noida, We will know in due course of time whether they will come in into that opportunity or not. Other than that, on the prior hotels, clearly there is no discussion at this point of time. For fiture acquisition opportunities, I will repeat the IV is constructed that we will continue to share 65:35, 63 in favor of SAMHI, 35 in favor of GIC. Also, what is important and pertinent here is that that joint venture is extremely well capitalized. It has the firepower to grow if we sce any opportunitics come our way. No conversation on existing operating assets.

Sir, does new opportunity include your dual-branded development in Navi Mumbai and W

‘Vaibhav Muley:

Hyderabad?

Ashish Jakhanwala

No.

‘Vaibhav Muley: Are these included?

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August 04, 2026

No. Those are opportunities which were seeded prior to the GIC joint venture. So, both Navi

Ashish Jakhanwala

Mumbai and W Hyderabad are currently and proposed to be owned 100% by SAMHL

Thank you so much.

‘Vaibhav Muley:

Thank you.

Ashish Jakhanwala

Thank you., the next question s ffom the line of Prashant Biyani from Elara Securitics. Please

Moderator

g0 ahead.

Prashant Biyani

Yes, thank you for the opportunity. S, Hyatt Regency Pune, we ar thinking of pre-positioning it as Grand Hyatt. That should happen by when?

Prashant, there was a vary carly discussion but we arc not pursuing that right now. We have

Ashish Jakhanwala

alrcady seen a significant change in the performance of that hotel. If you see Slide #27 oft he presentation, which has been consistent for last several quarters that was not really part of the plan. Tt was a discussion we had about 2.5 to 3 years back, since then we have scen the hotel grow fairly rapidly without that ineremental CAPEX so we are obviously not going that way.

Prashant Biyani

Sir, secondly, W Hyderabad and Courtyard Pune, in which quarter of FY 2027 can we sec opening oft hese two hotels?

W Hyderabad is kind of very cxciting, Prashant. We are gunning for that hotel to be fully

Ashish Jakhanwala

operational for the second haof FlY 2f028, In terms of project progress, we have made progress as scheduled and which would have led to the opening in, let's say; June o so. We have always scen surprises come our way in terms of regulatory approvals and licenses. We would like to be alittle cautious and say that we will make sure that that hotel s available for operations in sccond half of FY28 or Calendar Year 2027. Second was Courtyard Pune. Courtyard Pune, we have started the back-office renovation. We have started doing the MEP renovation. 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, cspecially at times when we sce that market remaining more resilient to actually some of the other matkets we operate in.

So, while we arc doing the back-end renovation, we have strategically deferred the public area and guest rooms renovations for now; which wWe now plan to start around April of 2027.

Typically, as I said, it will take about five to six months.

Prashant Biyani

Sure. Just similarly for Tribute Portfolio, in FY 2028, it shouild be starting in second half?

The Courtyard Pune, the W Hyderabad, both oft hese are now geared for the seeond half. And

Ashish Jakhanwala

same for actually Jaipur. Actually, Jaipur we have reccived most of the drawings and development. Thankfully for Jaipur, Prashant, it's casier 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 Punc is alittle

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August 04, 2026 bit more difficult because the revemue is spread across all 12 months, so we have to do renovation in parts ot to impact anything significantly on our revenue side. So, that's obviously the

timelines playing ot right now

Prashant Biyani

Sure, sir. Thank you so much.

Thank you. The next question is from the line of Karan Gupta from Asit C Mehta Investment.

Moderator

Please go ahead.

Karan Gupta

Hi. My question on the RARE. In terms of realization or the revenue part, how it is different in terms of asset-light to our upper upscale and upper-middle scale? Is it something we have the asset light, the operation and maintenance part that you are doing through the RARE part? Let's take an example, like Rs. 100 of billing, how much we will get in temms of our revenue? Just rying to understand the current model.

Good question. Within the RARE, there will be two revenue recogaition models. Majority of

Ashish Jakhanwala

will be just the booking revenues because what's happening is that RARE is entitled to fec or a commission. The first is the fec or the commission income that RARE will get on account of the bookings it channclizes through the distribution. So, that's straight income that comes to RARE.

We are sceing some hotels that there is an opportunity to sign what I would call a more extended agreement, in which case we fecl that a higher share of revenue will come through to RARE over and above the booking revenue. So, 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. We actually see increasing opportunitics for that as well, which we had not honestly underwritten. That's really a huge upside for us because it's not just the dircct booking income, we also sce some of the fee income come through to RARE India in the next few years. Those are the two sorts of income. The hotel revemes don't come to RARE India.

That remains with the hotel owner. RARE India will recognize the fee income that it gencrates from these hotcls.

Karan Gupta

Okay. Share from booking revenucs.

That's a commission on the booking, basically.

Ashish Jakhanwala

Karan Gupta

Okay. Commission on the booking.

That's right.

Ashish Jakhanwala

Karan Gupta

Okay. The RevPAR, any number you can share?

Ashish Jakhanwala

RevPAR of RARE?

Karan Gupta

Yes.

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Okay. RARE obviously is a different model. Its a blend of 75 hotels. I think taking average there

Ashish Jakhanwala

would be the most mathematically dishonest thing to disclose because the hotels operate from

Rs. 15,000 average rates to Rs. 55,000, Rs. 60,000, Rs. 70,000 average rates. Occupancy levels vary from 25%-75%. As far as RARE is concerned, if's a booking engine. It' 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 and 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. In fiture, I think we would 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 Ticr-1 business destination. We would like to report RevPAR rate occupancy from that portolio. Otherwise, I think we will be sending conflicting information to investors. RARE will recognize the commission, and we show that as a fee income.

Karan Gupta

That's right. In future, this kind of assct-light model, we arc also exploring more rooms or more hotels in that particular segment or it is just a kind oft he experiment that you are doing?

No, I don't think we will call it an xperiment. Anywhere where we deploy capital, it's not an

Ashish Jakhanwala

experiment because it's been well vetted, well thought through, RARE, when we actually signed the term sheet or when we signed the transaction in March had 66 or 67 hotels. That portfolio is

0w up to 75 hotcls. We continue to sce, as we had highlighted during our call on RARE India in March, we continue to see that segment having significant potential to grow in tetms of the asset base. Two, we also sce that portfolio grow as distribution becomes stronger and we bring more revenue to the owners and obiously RARE India charges a commission. So, it's a business where we think, as I say, the beauty of asset-light is that the marginal income does not come at necessarily every time a marginal cost, We sce that as the portfolio grows and the revenue profile of the portfolio grows, the fec income that will aceruc to RARE, there is no comparison to the past. Tt will be substantially different to what it has done in the past period.

Karan Gupta

Okay. Last question on revenue potential or the margin profile if you can share of RARE. of

Ashish Jakhanwala

Karan Gupta

Of RARE only.

Revenue potential we have alrcady given in the March prescntation, which we think once

Ashish Jakhanwala

stabilized will be about Rs. 100 crore-Rs. 120 croofr teop line. We, at this point oft ime, I think, bad highlighted our margin profile around 35% because there is a cost towards Marioft distribution. We continu to operate this at around. I think the EBITDA contribution from this should be about Rs. 35 crore-Rs. 40 crore in the next, I would think, year and a half, two years which is exactly the amount ofi nvestment that we are making in this portfolio. This portfolio should do a 100% NOI yield in about two-year period, after that it will start producing returns.

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Karan Gupta

Okay. Thank you.

Ashish Jakhanwala

Yes.

Thank you. The next question is from the line of Viraj Mahadevia from Moneygrow Assct.

Moderator

Please go ahead.

Hi, Ashish. Just to carry-on on the RARE point. Given you mentioned that potentially much

‘Viraj Mahadevia: higher chargeability points with nmuch lower capital employed. At steady state, do you thik the

RARE Group could do double the ROCE of your consolidated SAMEHL which s roughly around

10%?

So, Viraj, not double. It should do probably 5x.

Ashish Jakhanwala

‘Viraj Mahadevia: Okay. Wow.

Again, Twill highlight that our current business plan is that, we have invested about Rs. 47 crores

Ashish Jakhanwala

of total investment over a period of time. A bunch of that is going into the company. Some of it s going to the existing sharcholders. On a stabilized combination of the commissioning sum, combination of the fee income that we have now started seeing opportunitics for, which is more than just the commission, should get this portfolio to Rs. 35 to Rs. 40 crores EBITDA. There is

1o depreciation here, really. Itis all funded through internal aceruals. Secondly; there is marginal, very little depreciation, no finance cost. The flow through from EBITDA to PBTs pretty much,

Twould think, 95%. Therefore, the ROCES on this should be. I don'tthink we would have done this for just 10 going to 20. Even our mature owned portfolio today is at about 18%-19%. So, an asset-light investment should at least be 2x to 3x, otherwise that distraction is not needed. So, we clearly expect this portfolio to deliver 50%-55% return on capital employed, largely because of how it's constructed.

‘Viraj Mahadevia: Fantastic. My next question is, Ashish, little bit of a disconnect that I am trying to reconcile.

Quarter 1 last year to Quarter 1 this year, revenue has grown by 7%, but EBITDA s actually flat or down by 4%. That is the biggest driver 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.

This quarter, we tried kind of giving a bridge on Slide #21 (incorrectly mentioned slide#30 on

Ashish Jakhanwala

the call), Quarter 1 FY 26, Rs. 9 crore of other income, which really which was not an operating income, which came to us because of the GIC transaction where an instrument got revalucd.

That is why you sce is that entire Rs. 9 crores also got added to the EBIToDf tAhe prior quarter.

So, that's one distraction that you are sccing about what Rajat said, reported numbers. That's I think that two important considerations. One is negating the impact of that one-time last quarter.

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Second is don't forget on a Yo basis, there is a GST impact of about Rs. 9 crores, which will kind of at Least a YoY comparison will get removed from Quarter 3 onward. Interestingly, when you remove the last year one-time revenue recognition, which flew straight to EBITDA, straight to PBT, PAT actually, right. So there is a sequential impact oft hat. Also, the Rs. 9 crores 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

Quarter 2, you will actually sce the elimination of the one-time income in the prior period. It will help our EBITDA growth improve. Quarter 3, the GST gets negated. We will come back to the revenue and EBITDA numbers looking rational. Right now, they look totally irational.

‘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 Rs. 550 odd crores of EBITDA versus Quarter 1 we have done about Rs. 100 crores. We have about Rs. 150 per quarter to go for the next quarters to land at that sort of outcome. Does that sound achievable and reasonable?

No. We didn't say 2.5x by end of FY 2027. Wet hink we will get there by FY 2028, both because

Ashish Jakhanwala

of EBITDA. Actually, largely on account of stable net debt and growth in EBITDA, Viraj, to be honest with you.

Right. Okay, understood. Thank you. All the best.

‘Viraj Mahadevia:

Thank you.

Ashish Jakhanwala

The next question is from the line of Bharat Gianani from MC Research. Please go ahead.

Moderator

Yes, sir. Thank you for the opportunity: The first question is on the enabling resolution that we

Bharat Gianani

have taken, and you highlighted the comments that we are going to do this every year. So, while it will give you comfort to be prepared for an acquisition, but then 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. And sccondly, you also have a platform especially for the upscale hotels for GIC as well. Probably, then if you have the opportunity from the GIC side and then again, you have an cnabling resolution, it does not give a very comforting sign to the investor. Just wanted to check on that point and 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?

And the second point is that, considering that if we kind of utilize the fands for acquisition obviously that's the business modsl. But comparatively; acquisitions have become costlier since the hotel owners are demanding a lot of money nowadays. So, how do you think about the refurn. on capital emploiyn ethdat casc? Thanks.

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Okay, Bharat. A lot of questions. Let me try and split them and try and answer. First is about the

Ashish Jakhanwala

practice and any potential anxicty or overhangs. I think we have checked, and there arc quitc a fow 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 sce 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 companics which are headed into a massive

CAPEX cycle and for companics operating in sectors which tend to respond fairly quickly to elobal uncertainties. Put all of that together, and I think people should draw comfort from the fact that the Management and the Board, A) have the ability and B) have the intent to protect balance shect over cverything clsc. That's patt one. Part two, Bharat, I cannot answer about the mix because as I said, this is an enabling resolution. We have not really done any work or met investors or deliberated about all oft hat. 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 opportunitics, Bharat, I am not worricd because we have always said that we are buying hotels which have an operational distress. An operational distress,

Tkind of acknowledge that tends to be less in up cyeles than in down cycles. But nevertheless, we have been able to find opportunities in at peak of the cycle at some of our most attractive markets like Bangalore Whiteficld or Hyderabad City or Heart of Noida. If you sce in the last thrce years, the sort of opportunities that we have secured for the company, they all follow the theme that we have followed for the last several years and yet at a time when one would expect the markets to be really at a peak. We are not worried about continuing to see opportunities where our cfforts of renovation, rebranding, and assct management can create an operational turnaround and create value for our shareholders. That's pat two of your question, and I think those were the two main questions. Apologics ifI missed any, happy to address them.

Okay, sir. Thanks a lot.

Bharat Gianani

Thank you, Bharat

Ashish Jakhanwala

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

Moderator

g0 ahead.

Ashish

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 projcct? Are there any approvals which are awaited that could derail the project at this point? What were the carlicr issues with regards to that project, and are they fully resolved as of now? That's the first part.

Yes, sure. No issues on Navi Mumbai. All the issues that we had reported, I think two years

Ashish Jakhanwala

back, are fully resolved. There are absolutelnyo issues. The projecits moviin nthrgee directions at this point of time. The first direction is statutory approvals, which are moving quite well. We

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August 04, 2026 expect to receive the first set in the next few months or so. The second is design development, 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 fo be well-prepared about deploying technologies that can help us expedite delivering this very large project. So, on all three fronts, we are making really good progress, and I will assure everybody that there arc no “concerns” or issucs with approvals or authorities at this point of time.

Could you give a sense on the timeline for the completion of this project? By when do you expect

Ashish

the capital investments for this project to begin?

Ashish, we were originally planning to be on-site, hit the ground by end of this fiscal year. Let's

Ashish Jakhanwala

assume to be on the safe side, 1% April 2027 is when we hit the ground. Honestly, I would give curselves between three years to four years to deliver this hotel, given the size and the scale.

That's really the timeline that we sce for ourselves, really, and in line with what we have indicated o all of you. We remain on time right now. Indications are that we should be hitting the ground by 1% April. I will repeat, unlike many ofher projects, given the size and scale oft his project, the development approach needs to be very different, more scientific. Prep time will be longer, but 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 projeet will need a large pool of capital, through FY 2028 it will be much lesser because that's going to be largely towards the

RCC structure. The main part of capital investment in this project will start in FY 2029, FY

2030, which is when we head into finishing and engineering installations. Through FY 2028, the investment in this project will remain rather small. Therefore, it matches with our current cash flow statements.

Thank you,sir, and best of luck.

Ashish

Thank you so much, Ashish.

Ashish Jakhanwala

Thank you. Ladies and gentlemen, that was the last question for the day. Now I hand over the

Moderator

conference to Mr. Ashish Jakhanwala for closing comments.

Thank you everyone for your patience and belieifn SAMHL I will reiterate the fact that in spite

Ashish Jakhanwala

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 have invested in. With that, we remain fairly excited about the fact that

SAMHI is destined to at least multiply its revenue by 2.5x, which s the path we have given of going from Rs. 1,200 crores to Rs. 3,000 crores. With that, I would like to thark you all and talk to you again soon.

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August 04, 2026

Moderator

‘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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