Samhi Hotels, established 13 years ago, has emerged as the third-largest hotel owner in India in terms of the number of keys by March 31, 2023. They have also earned the distinction of being the fastest-growing hotel owner in India over the past decade when measured by the annual addition of keys.
As of March 31, 2023, the company has consistently expanded its portfolio by approximately 369 keys per year since its inception in 2010, amassing a total of 3,839 operating keys.
Their 25 operating hotels are strategically located across 12 prominent Indian cities as of March 31, 2023.
The company has formed agreements with renowned names in the hospitality industry to enhance its services, including Marriott, Hyatt, and IHG and their affiliated brands. These agreements have greatly contributed to the company's revenue, with Marriott contributing 60.81%, Hyatt contributing 18.34%, and IHG contributing 18.39% to their total revenue from operations for 2023.
Samhi Hotels has previously encountered issues regarding non-compliance with specific terms in their financing agreements, which could potentially harm their business and financial status if covenant breaches occur in the future.
The company has experienced restated losses and negative net worth in recent years.
As of June 30, 2023, their consolidated borrowings amounted to ₹28,124.86 million.
They have obtained certain credit facilities with repayable-on-demand terms. As of June 30, 2023, they had ₹902.15 million outstanding under such credit facilities, which accounts for 3.21% of their total outstanding borrowings on a consolidated basis.
The company operates in an industry prone to seasonal and cyclical variations, which may lead to fluctuations in its operational results.
They have entered into agreements with Marriott, Hyatt, IHG, and their affiliates to receive operational and marketing services for their hotels. The termination or non-renewal of these agreements could harm their business, financial status, and operational outcomes.
Most of their revenue originates from a few hotels in specific regions, including Hyatt Regency Pune, Sheraton Hyderabad, and Courtyard by Marriott Bengaluru ORR. Any decline in revenue from these hotels due to factors like increased competition or reduced demand could harm their business.
The company has experienced certain defaults and delays in paying statutory dues, which may result in financial penalties from government authorities if further defaults or delays occur.
The company and its subsidiaries are currently involved in various legal proceedings.
Ten out of their 25 operating hotels are situated in buildings leased from third parties. Failure to adhere to lease agreement terms, renew agreements, or secure new agreements may negatively impact their business.