RARE India Acquisition Expands

SAMHI

into Asset-Light Leisure

Despite geopolitical tensions in the Middle East, India’s hotel industry demand remains buoyant, supported by better connectivity, rising conferences, and sustained corporate activity.

deriving 80–85% of revenues from domestic guests, is well positioned to benefit from this up-cycle. With strong demand-supply dynamics, debt reduction, and entry into the asset-light leisure segment, SAMHI offers an attractive tactical investment opportunity. Operational Highlights - Revenue growth: +14% YoY in 9MFY26, driven by like-for-like (LFL) growth. - Inventory expansion: Added 223 rooms and rebranded 133 rooms in 9MFY26; full benefit expected in FY27. - FY27 outlook: Revenue growth projected at 13–14%, aided by incremental 300–400 bps from new/rebranded inventory. Demand Drivers - Key markets: Bengaluru, Hyderabad, Pune, Delhi NCR (~75% of revenues). - Strong office absorption and limited supply additions sustain pricing power. - Industry up-cycle expected to continue in near-to-medium term. Balance Sheet Strength - Net debt reduced from ₹1,967 crore (Mar 2025) to ₹1,450 crore (Dec 2025). - Net debt/EBITDA improved from 4.4x to 3x. - GIC deal: Strengthened balance sheet, CARE credit rating upgrade, and co-funding of future greenfield projects. - Enables SAMHI to independently pursue growth opportunities. Strategic Expansion - Acquisition: 70% stake in RARE India (₹47 crore investment, valuation ₹49 crore). - RARE platform: 67 experiential hotels (~1,000 rooms) across India, Nepal, Bhutan. - Marks SAMHI’s entry into asset-light leisure segment, diversifying revenue streams. Valuation & Risks - EV valuation: ₹4,800 crore for 4,904 keys, close to replacement value even after adjusting for GIC’s minority stake. - Key risk: Escalation of Iran-US crisis could impact foreign arrivals (15–20% of revenues). - Overall, SAMHI’s strong domestic positioning, balance sheet repair, and expansion strategy make it a compelling tactical bet.