SAMHI Hotels Limited (NSE: SAMHI) Q3 2025 Earnings Call dated Jan. 30, 2025
Corporate Participants:
Ashish Jakhanwala — Chairman, Managing Director and Chief Executive Officer
Rajat Mehra — Chief Financial Officer
Analysts:
Karan Khanna — Analyst
Pradyumna Choudhary — Analyst
Jinesh Joshi — Analyst
Abhishek Khanna — Analyst
Shubham Ajmera — Analyst
Yashowardhan Agarwal — Analyst
Aditya Singh — Analyst
Kaushik — Analyst
Yash Darak — Analyst
Sunil Jain — Analyst
Dhairya Trivedi — Analyst
Shrinarayan Mishra — Analyst
Presentation:
Operator
Hello, ladies and gentlemen, good day, and welcome to the Samhi Hotels Limited Q3 and Nine Months FY ’25 Earnings Conference Call. 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 guarantee of future performance and involve risks and uncertainties 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, please signal an operator by pressing star and then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Ashish, MD and CEO of Sami Hotels Limited. Thank you, and over to you, sir.
Ashish Jakhanwala — Chairman, Managing Director and Chief Executive Officer
Thank you so much. Good afternoon, ladies and gentlemen. Welcome to Sami Hotel’s earnings call for the quarter-ending December 31, 2024. I have with me today Rajit who’s CFO; Yana, who is EVP and Head of Investments; Nakul, who is VP of Investments. We also have on-call our Investor Relation Advisors, Strategic Growth Advisors. We have uploaded our Q3 FY ’25 financials and presentation on the exchanges, and I hope everybody had an opportunity to go through the same. To begin with, I will request my colleague Rajit to give us a summary of our financial performance, after which I will give you a small brief on business and then we will open the floor for Q&A. Rajit, over to you.
Rajat Mehra — Chief Financial Officer
Thank you, Ashish, and good afternoon, everyone. It gives me immense pleasure to announce Sami’s financial performance for the quarter-ending, 31 December 2024. Starting off, I would like to point out that this is the first-quarter when both the current quarter and year-on-year comparable quarter have full consolidation of ACIC portfolio given the August 2023 acquisition date. Our asset income, which captures the revenue generated from our hotels stood at INR296 crores, registering a year-on-year growth of 10% as compared to same quarter last year. This growth is driven by same-store assets delivering a strong RevPAR growth of 15% year-on-year. The ACIC portfolio had muted revenue growth as we have currently focused on completing the transition from franchise to managed coupled with fixing the cost structure. We have with those initiatives completed, our focus for ACIC portfolio now shall solely be towards increased market penetration and revenue growth during financial year 2026. Our asset EBITDA, which captures hotel level profitability stood at INR122 crores for the current quarter, registering a year-on-year growth of 13% as compared to same quarter last year. Asset EBITDA margin stood at 41.2%, demonstrating a 90 bps year-on-year improvement. ACIC portfolio margins stand now at 39.4% for the quarter, which should move towards 40% or so going-forward in Q4 of financial year ’25. We have seen material reduction in net corporate G&A and ESOP expense, both at INR4.4 crores each. On the basis of this, I’m happy to report that our reported consolidated EBITDA stood at INR113 crores for the current quarter, registering a 25% year-on-year growth as compared to same quarter last year. Consolidated margins do have reached to 37.9% with headroom for further margin expansion going-forward. Depreciation expense has been stable at INR29 crores. So we have one of the — one of our pre-IPO high-cost loans during the quarter, which — which has been refinanced and could result in an annual saving of INR16 crores. However, this comes with a non-cash accounting entry related to the write-off of the upfront fees paid prior to the takeover of the loan. This has inflated our reported finance cost by INR6.5 crores to INR62 crores. All-in, our reported PAT stood at INR43 crores. Adjusted to non-cash finance cost entry, our PAT would have been circa INR30 crores. From a capital structure perspective, our net-debt as on December 31, 2024 stood at by about INR2,060 crores with a cost of debt of 9.4%. The quarter-on-quarter increase in net-debt on account of growth of — on account of growth capex that we have incurred for the acquisition of the Trinity Hotel in Bangalore, Express additional rooms and W developments. Our operating assets are now at a trailing-12 months net-debt to EBITDA of 4.3 times after adjusting to the growth capex that has been incurred. With that, I shall now request Ashish to take us through the market and the business update.
Ashish Jakhanwala — Chairman, Managing Director and Chief Executive Officer
Thank you, Rajit. As Rajit mentioned, we witnessed a fairly strong 15% RevPAR growth for same-store assets. This was a result of continued demand from an expanding office market across our key cities and a record passenger movement of 77 million passengers during the last quarter. New hotel supply continues to remain very low in key cities and creates a perfect environment for RevPAR growth. Bangalore and Hyderabad, two of our key markets and also the markets where we are adding new inventory continue to see robust office space growth and a strong increase in airline passengers. The amount of investment and interest that the tech sector is getting alongside global capability center will continue to boost demand in these cities. Bangalore benefits from a very large phase and while Hyderabad we feel has phenomenal infrastructure in-place. As we see continued revenue growth, we remain focused on leveraging it to improve our EBITDA margins.
As Rajit mentioned, at the asset-level, the delivered EBIT — the delivered EBITDA margins are 41.2%. Within that, the same-store assets achieved an EBITDA margin of 42.2%, ACIC is almost reaching about 40%. As discussed in past calls, we are working on a few fronts to deliver strong growth in addition to what we expect from our same-store assets. And I think the first part of that is pretty transformational in which we are changing a whole portfolio construct where the upper-upscale and upscale hotel portfolio through various steps will double in inventory from about 1,000 current rooms to over 2,000 rooms. It is important to note that this segment of hotels operate at a much higher revenue per room as compared to our current portfolio average. This increase in inventories happening via the following. Work has started to add 54 rooms in, Hyderabad and 22 rooms in Pune. These shall be completed in FY ’26. And since these are part of existing operating hotels, this stabilization timeline shall be very rapid.
Next, we are repositioning two of the upper mid-scale ACIC assets in Pune and Jaipur, adding to about 330 rooms into a Marriott and the second hotel in the distribute portfolio by Marriott. The 217 room courtyard in Pune will therefore be the second courtyard in our portfolio following the hugely successful the Marriot in Bangalore Road. The W Hotel in high-tech City Hyderabad and the Western Tripute Combo hotel in Bangalore, Whitefield will together add about 530 rooms in key and high-performing micro markets. We have witnessed both of these micro markets, which is high-tech city and whitefield performed very strong over the past few quarters. In our upper mid-scale portfolio, we are adding about 80 rooms to our existing pay field by, Chennai. The existing 153 room hotel has seen strong performance within our portfolio. And after this expansion, that hotel would be 230 rooms. Lastly, in our mid-scale on the Express portfolio, we have seen successful renovation and rebranding of the Caspia Pro into Express with 133 rooms. This hotel reopened in December 2024 and is gradually capturing market-share within the Britain precinct. The other 170 odd rooms in Calcutta and Bangalore are fully ready and Beijing for final approvals, which are expected shortly. We also continue to make-good progress for asset recycling as discussed on our earlier calls, and this will help us reallocate our capital for both better margins and improved proceeds.
I would request participants to access our quarter three FY ’25 investor presentation. That has been uploaded to view some of the images of the growth projects we are working on. This will give you a good idea on how we are transforming our portfolio and its impact on the financial outlook.
With this, I shall open the floor for Q&A. Thank you.
Questions and Answers:
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 one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to please 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 Khana from Ambit Capital. Please go-ahead.
Karan Khanna
Hi, thanks for the opportunity and congrats, Ashish team on another quarter of operational turnaround. So Ashish, my first question is on the broader markets. We’ve seen about three or four years of very strong performance on the luxury — luxury hotel rooms. Increasingly, do you think that the next two to three years will possibly see the mid-scale and the upscale segment doing potentially better than the luxury segment? And in that context, how do you think about potential RevPAR outperformance for your portfolio compared to, let’s say, the luxury hotel rooms in the next two to three years.
Ashish Jakhanwala
So thanks, Karan. You’re absolutely right. We have now seen I guess about eight to nine quarters of strong performance. You know the early indicators for the current quarter continue — continue to indicate pretty strong growth on a year-on-year basis. We think the occupancy levels are now mid 70s in several markets touching high-70s. If you were to break that within day of the week occupancy, we’re seeing weekdays doing anywhere between 80% to 90% occupancy levels in some of our key markets and hotels. And therefore, that really leaves the room for rate growth. I think in terms of segment performance, Karan, we feel that for the next several quarters of all segments will continue to perform well. Having said that, we believe that the inventory position that we have created in Bangalore and Hyderabad and the future supply that we are bringing through the W and Hyderabad, the West Tribute in Bangalore, I think that will have a substantial impact on how SAMI’s performance turns around over the next few quarters and years because these are undisputably some of the best-performing markets, not just in terms of hotel performance, also in terms of office absorption and airline growth. So I think our excitement is stemming from the fact that we’ve secured the right growth pipeline in cities which are fairly well-poised for continued RevPAR growth. And you will see the impact of that starting this year when we add rooms to, let’s say, Sherit and Hyderabad next year when we start — next year I’m saying FY ’27 when we start seeing the opening of WN Hi-tech City Hyderabad and then of course, beyond that, the best-in Bangalore.
Karan Khanna
Sure. This is helpful, Ashish. My second question pertains to your net-debt. So we’ve seen about almost INR2 billion increase this quarter and your net leverage is at about INR21 billion, which is your peak net-debt guidance as well. Do you still maintain the 4.5 times net-debt EBITDA for FY ’25 and 3.5 times for FY ’26. And as a follow-up, do you also see any potential asset recycling opportunities materializing soon, in which case the leverage or the net-debt to EBITDA potentially could be at a lower level.
Ashish Jakhanwala
So Karan, first, just to be clear, you are absolutely right. We have the peak leverage levels right now because we’ve already accounted for the capex we’ve spent on Bangalore acquisition in Hyderabad. Now starting quarter-four, all of the capex that we’re incurring in existing — in development of these assets is coming from our internal accruals and free-cash. With that, we remain fairly confident about achieving the 4.5 times net-debt to EBITDA on a reported basis end-of-the current fiscal year. And then subsequently because our EBITDA growth is pretty substantial, we expect — expect that to quickly deaccelerate to that 3.5 net-debt to EBITDA levels. So we are absolutely on-track. And to add to that, I did make a comment, Karan, that we are making good progress on asset recycling. We believe that as we start that program, that will obviously further assist our ability to further deaccelerate — further accelerate the deleveraging, which means that the path to that 3.5 times could be slightly quicker based on the success of that asset recycling. And we are making good progress so-far.
Karan Khanna
Sure. My third and last question, you’ve rebranded Caspia Pro in Greater Noira to Holiday in Express. So if you can talk a bit about how has been the change in terms of the ARR RevPAR since last week of December when you rebranded this into a Holiday in Express.
Ashish Jakhanwala
So currently, Holiday Express, Greater Noida opened in December 2024. So it’s just been just about a month. Just give me a second, I’m just looking at the performance data. So this hotel used to operate at a rate of about INR2,300 rupees. Early numbers and that’s because it is the first few days. The hotel is currently trading at month-to-date at about INR505. So we have seen a 2x growth, but word of caution, quarter-four is undoubtedly the best quarter at least our company tends to see because of how business travel you know stacks up in the current quarter. So I am not guiding people to think that Express later, I will sell at INR5,600, but it’s just that it has transformed into a 2x change with renovation and rebranding.
Karan Khanna
Sure. This is helpful, Ashish. Thank you and all the best.
Ashish Jakhanwala
Thank you.
Operator
Thank you. Ladies and gentlemen, in order that the management is able to address questions from all participants in the queue, we request you to please restrict your questions to two per participant. You may rejoin the queue for follow-up questions. We have the next question from the line of Pradhum Na from JM Financial Family Office. Please go-ahead.
Pradyumna Choudhary
Yeah. Hi, Ashish, congratulations on a good set of numbers. I just wanted to understand a bit more on the ACIC side, what has been the revenue growth? You spoke about a muted RevPAR growth over there. So that means it’s been absolutely flat or and second would be what really was happening in terms of — you spoke about transition and all, but on-the-ground, what really was happening, which actually prevented us from growing on the ACIC portfolio given the strong tailwinds across the hotels that we are currently seeing.
Ashish Jakhanwala
Yes., thank you for your question. So let me first assure you what we are seeing is a part of the plan and not either a surprise or disappointment. So just to give you numbers, during the quarter that we just reported, the total income in ACIC remained flat vis-a-vis the same quarter last year, but the EBITDA margins expanded by about — actually the growth in EBITDA was about 10% with a margin expansion of 300 basis-points. So what had happened was that till about October, November, these assets were franchised and in November, they transitioned to Marriott Managed. All the efforts towards restructuring the organization, change in food and beverage has now been implemented, and that’s why even on a flat revenue, we have delivered almost a 10% EBITDA growth. The second thing which happened, and this is really standard when you transform a hotel from franchise to manage is you tend to draw a lot of business, which is low-rated and not high-margin. So the first thing one needs to do is to free-up the bandwidth to secure the high-rated, high-margin business, but the first thing has to be to lose and let go of the low-rated, low-margin business. So that has happened in the last quarter. You will see the revenue growth coming into this portfolio starting in the current quarter because now all of that cleanup has happened, a lot of low-rated accounts have been now flushed out-of-the system. A part of the plan which is delivering our margin expansion, EBITDA growth in-quarter four, as we start seeing revenue growth coming into this portfolio, you will then see a significant flow-through impact onto the bottom-line.
Pradyumna Choudhary
Understood. And just a follow-up here. So the muted revenue growth was account of lower occupancies or lower a muted ARR growth or was it a combination of both?
Ashish Jakhanwala
And actually if you ask me pretty much the same. Both are flat and so is the F&B income also, right. So it’s actually when I’m looking at the data here, we are seeing occupancy remain flat. The rate also kind of remained flat and F&B income was exactly the same, INR13.2 crores, INR3.2 crores for the quarter. So overall metrics were kept flat, but the EBITDA went from INR19 crores to INR21 crores.
Pradyumna Choudhary
All right. And my last question is regarding the capex plan for FY ’26 and FY ’27. If you could just give the broad numbers, that would be really helpful.
Ashish Jakhanwala
Yeah. So FY ’25, we have now — we had made a lot of investments. In the current quarter, we only expect about INR20 odd crores of capital expenditure, which is quarter-four. For the next fiscal year, we have approximately INR200 crores of capital expenditure, of which about INR50 crores will go towards the new rooms opening in Sheraton and High. And the good news is that, that capital expenditure brings immediate profits because these are existing operating hotels and then the balance about INR125 odd crores, INR140 crores is between the W Hyderabad and and West in Bangalore Street.
Pradyumna Choudhary
And FY ’27 plans you have or that’s too early right?
Ashish Jakhanwala
About INR150 crores a year for FY ’27, FY ’28 for us to be able to deliver the West best-in in Bangalore in FY ’29 as we have indicated. So for both FY ’27 and FY ’28, you expect about INR150 crores annualized capital expenditure.
Pradyumna Choudhary
All right. All right. Thank you and all the very best.
Ashish Jakhanwala
Thank you so much.
Operator
Thank you. We have the next question from the line of Jinesh Joshi from PL Capital. Please go-ahead.
Jinesh Joshi
Thanks for the opportunity. Sir, just one observation from my side, our same-store RevPAR growth is about 15%, but our revenue growth is 11%, which perhaps indicates that the F&B revenue growth in this quarter was a bit subpar. Now given in this quarter, the mice revenue typically tends to be higher given the concentration of wedding date. Any reason why the F&B revenue growth was lagging this time around? And also in this context, how should we think about the F&B growth going ahead?
Ashish Jakhanwala
Yeah. So I think very good question. So I’ll just further break. So first of all, absolutely, yes, our RevPAR growth of 15% resulting in a TR total revenue growth of 11% means a lower than 15% — actually lower than 11% FMB growth. So we have seen F&B grow at about 5% on a year-on-year basis. Now within that, what is interesting is that we’ve seen the venue revenue, which is what you’re referring to the meeting spaces, the ballrooms and all of that, has actually grown at 13% year-on-year. So you’ve seen reasonable growth in the mice or the events related business. It is the specialty restaurants, the outlet income, which has remained almost flat, right. So we have seen some sort of flattening of revenues in the outlet revenues. I cannot really necessarily — I think it’s too early to blame external factors. Give us a quarter or so, we are reviewing internally both our pricing product, probably some marketing efforts that we need to make in three or four specialty restaurants that we have. Our total M&D contribution is just about 25% 26% is not very substantial, but we see opportunities to improve the outlet revenues because we don’t really see a problem per se, as you mentioned in the overall miles or the events revenue.
Jinesh Joshi
Got that. And sir, in the opening comments, you also mentioned that the ECIC portfolio is expected to shift from the franchisee route to the management contract route in November. So with the shift happening, what kind of RevPAR growth are you expecting given the — given the fact that in the nine months, your number on the ECIC side was relatively flattish.
Ashish Jakhanwala
So I think the main focus now has so first of all, the whole transition has been completed, all the organization changes that needed to be made, I would believe 90% of those changes have been fully completed so-far. The focus therefore now is completely repricing the asset. Our expectation is that from current quarter, you’ll start seeing the RevPAR growth coming into — actually the rate growth coming into the ACIC portfolio. Occupancies are at 72% 73%, so they are pretty stable and good. You will see a churn of the rate mix. And I think in FY ’26, you should expect 9% to 11% total revenue growth in ACIC?
Jinesh Joshi
Sure. And the last question from my side. And the margin exercise in ACIC, is it fully complete or do you think that further elements in terms of cost are yet to be pending, which can lead to further improvement in margins because I believe this 9% to 11% RevPAR growth, the flow-through to EBITDA will be there from this element. But anything from the cost side, which can lead to an improvement in the margin is what I want to understand.
Ashish Jakhanwala
So I think on cost, we have — so whatever you’re seeing with flat revenue, we have got the margins up from almost 32% to 40% now. Going-forward, the margin expansion will really be an result of flow-throughs from incremental revenue. So first of all, we do definitely see the margins in ACIC portfolio cross 40%, remain there for an annualized basis. You’ll always see quarter one, quarter two being slightly lower. But I think for a full-year basis, you will see ACIC definitely cross 40% plus. But that movement from, let’s say, 39% for the quarter or for the last year, let’s say, 36%, 37% to 40% is now going to be largely a factor of flow-through of incremental revenues.
Jinesh Joshi
Got that. Thank you, sir. Thank you.
Operator
Thank you. The next question comes from the line of Abhishek Kanna from Kotak. Please go-ahead Ms Abhishek Kanna, your line has been unmuted. You may proceed.
Abhishek Khanna
Am I audible?
Operator
Yes, you are
Abhishek Khanna
Yeah. Hi, sir. I just wanted to check. I understand this PR Delhi is going for renovation starting January as you mentioned in the presentation. Could you share what was the contribution to earnings in terms of, let’s say, revenue or EBITDA for this quarter annually, if any?
Ashish Jakhanwala
INR1 crore. That’s it.
Abhishek Khanna
Negligible. Okay. Got it. And when do you expect to complete this innovation broadly a year or so? Is that how that’s.
Ashish Jakhanwala
That’s about a year. Our field portfolio today, Abhishek, delivers us an EBITDA in accal of pay field portfolio will be around INR12 lakh. EBITDA per key? So our steel portfolio does an EBITDA per key of about 10 lakh to INR12 lakhs. We do expect this hotel to kind of be positioned on the lower-end of that, so I will say closer to the INR9 lakh 10 lakhs per EBITDA per key. Effectively, Abhishek, this hotel was being kept operational because of the licensing issues and that’s why the EBITDA was just about INR crore. As we renovate this hotel and that’s a pretty quick light renovation fairfield, we do expect the contribution from these 140 rooms to be materially different to what we’ve seen in the past. It’s an FY.
Abhishek Khanna
Got it. And second, on Slide 10 of your presentation where you’ve given the waterfall from the asset income and the asset EBITDA ’23 — 3Q ’24 to 3Q ’25, it says the acquisition contribution is INR56 million, does that include ASIC and Trinity board? Isn’t that two less? And the EBITDA contribution is INR4 crores-odd. You mentioned in the notes that it is ASIC plus Trinity. Is it both of them or just Trinity?
Ashish Jakhanwala
Because ACIC we will take to same-store starting first April, 1st April. Yeah. So once we complete the fiscal year for just the sanctity of the numbers, from 1st April or first-quarter of FY ’26, ACIC will be kind of included in the same-store. In such point, ACIC and both are adding up to that acquisition impact.
Abhishek Khanna
So does that mean 960 keys plus 140 keys of Trinity were generating INR6 crores of quarterly revenue and INR4 crores of quarterly EBITDA?
Ashish Jakhanwala
Additional. You’re right. ACIC remained flat, okay. And therefore large amount of incremental revenue that you’re seeing is actually from Trinity, right?
Abhishek Khanna
So you’re saying the first bar, which is 2692 for asset income includes part of the ASIC asset income.
Rajat Mehra
That’s — that was reported with — absolutely.
Abhishek Khanna
Got it. And the last question from my end, what is — while you’ve given the capex plans for the next three years, INR200 crores INR150 crores each for the year-after that. That broadly adds up to what you’ve given as the planned capex for the Hyderabad and the Bangalore hotels from what I remember, I think INR150 crores to INR200 crores for Hyderabad and probably INR300 odd crores for Bangalore existing plus new. Is that all the capex that you plan to do or there’s some additional capex that you do — that you will do for the renovation, etc. and the addition of existing keys that you’re doing on the portfolio that you already have.
Ashish Jakhanwala
So Abhishek, I just add to what I said earlier. So if you see the total capex plan for Bangalore continues till FY ’29, okay. And in a — when you’re adding a whole block of rooms, a large part of that capex actually ends being not really back-ended, but like spent towards the completion of the project and FF&E and other items, right. So the current INR200 crore INR220 crores for FY ’23, INR150 each for FY ’27, FY ’28 and then of course, the Western Bangalore going into FY ’29 gives us the whole pool of capital, which is required for next year, and Hyderabad room additions, we need about INR50 crores for that. It is required for some bit of — the renovation in Delhi, for instance, is very low. It’s about INR8 lakh 10 lakh per, about INR14 crore renovation that we are envisaging for Delhi and the rest is basically going towards the best-in and the W. Don’t forget, we already have assumed in our — of course, we don’t give a guidance. But in our internal business plan, our financial statement already carries approximately INR40 crores to INR50 crores of expense that we take through our P&L and that pretty much captures all capital expenditure that is needed to be incurred in our existing operating portfolio. So in addition to the capex that we are setting aside outside of the P&L, our P&L always carries a significant amount of charge towards capital expenditures, both maintenance and sometimes slightly longer-term, and that number would be about INR40 crore INR50 crores.
Abhishek Khanna
Got it. So just confirming the next two years of INR150 crore reach would also probably include some towards, let’s say, expansions at Chennai and the other hotels that you do right.
Ashish Jakhanwala
That’s right. That’s right. That’s right.
Abhishek Khanna
Got it. The balance for W/O Bangalore being slightly there in FY ’29 is how it is.
Ashish Jakhanwala
Only for Western Bangalore. The W will be fully spent in FY ’26 and FY ’27, we’re pretty much on-track to open that hotel in FY ’27 right now. So W has to have go through that capital expenditure through this period. The renovation of the existing hotel in Trinity is not a high amount and that will also be done in FY ’27, ’28. FY ’27, early FY ’28 and holes in FY ’25,
Abhishek Khanna
Perfect. That’s helpful. Thanks a lot.
Operator
Thank you. Participants who are joining question queue are requested to please restrict your questions to two per participant. Please rejoin the queue for follow-up questions. We have the next question from the line of Shubham Ajmera from SOIC. Please go-ahead.
Shubham Ajmera
Hey, sir. I just had a question that in-quarter four, do we see our — basically do we see our top-line growth averting to 10% to 15% level in-quarter four?
Ashish Jakhanwala
We are seeing pretty good business on books, Shubham, but I’d like to abstain from giving a very definitive guidance. But I can for sure say that looking at the business on books today and we still have 60 odd more days to go in the current quarter, the total revenue growth does remain higher than what we’ve seen for the prior quarter.
Shubham Ajmera
Okay, okay. Thank you, sir. And basically second question was, when we look at the EBITDA margins of our hotel versus some of the other listed hotels, do we expect that even our EBITDA margins will start inching towards 41% to 42% level?
Ashish Jakhanwala
Yes, absolutely, no doubt about it.
Rajat Mehra
I think for all the best. So we don’t like too much of breaking the numbers because it looks like unnecessary justification. But if you look at our upscale portfolio, which is very stable, there is no new addition, no ACIC, we actually see EBITDA margins of what, 43% 44% there. And as we integrate ACIC as some of the mid-scale hotels starts to improve performance, I think the least we expect is the number that you just mentioned.
Operator
Okay, great, sir. Thank you and all the best for the next financial year. Thank you. Thank you. The next question is from the line of Yashov Agarwal from Wealth and Investments. Please go-ahead.
Yashowardhan Agarwal
Yeah. Hello, am I audible?
Ashish Jakhanwala
Yes.
Yashowardhan Agarwal
Hello. Yeah. Hi, sir, congratulations on the good set of number and thanks for the opportunity. And sir, my first question is on the debt. So you’ve explained that how a net-debt to EBITDA will look like, but in terms of absolute debt. So sir, if you can talk about that, how is that debt addition plan to move and the absolute debt that you were expecting by the FY ’26, 7, 18. So if you can talk on that?
Ashish Jakhanwala
Ayash, I think I only partly got your question, which is the first part that how do we intend to reduce our debt, right? Can you repeat the second part of the question you were saying probably from the –.
Operator
Sorry to interrupt a little bit. Yes,, before you ask your question again, we request you to please check the mode that you’re using on handset. You do sound a little muffled.
Yashowardhan Agarwal
Yeah. Yeah, is it better? Hello.
Operator
Please go-ahead.
Yashowardhan Agarwal
Yes. Yes. Sir, my question is that please explained the net-debt that we are expecting in FY ’25, ’26 and ’27 end. But can you please talk about the absolute number that you would be seeing in the year end? And what is the roadmap towards the reduction of it? Because we have just highlighted the capex plan. So if you can talk more on that
Ashish Jakhanwala
Absolute debt reduction. Absolute debt reduction, right? Okay. So as of today, our gross debt is about INR2,200 crores, which has remained pretty much the same for the last several quarters. Our net-debt has increased on account of utilization of cash for the acquisition in Bangalore, Hyderabad and capital expenditure towards the opening of the two or three holidays hotels that we have. So our gross debt has remained absolute — there could be marginal changes quarter-on-quarter on account of overdraft limits being drawn and deposited, so on and so forth, but largely remained the same, right? Yes. In terms of the gross debt level, it will obviously come down on account of two factors. One is the fact that we continue to make scheduled repayments to our term loans on a yearly basis. So there is a part of the cash that the business generates, which is used towards repaying the gross debt, right? The second is, of course, the fact that if you look at our current cash production being done by the company, interest expense and capital expenditure, we expect that we will always maintain a slight surplus, which will further go towards further reducing our net-debt. And the last but not the least, our potential impact of an asset recycling where when we let sell an asset and all of that cash either goes towards reducing gross debt or comes with cash and the company reduces the net-debt, the asset recycling will further allow us to reduce the — the net-debt, right. Now in terms of an absolute number of where we expect the gross or the net-debt to be over the next, let’s say three years, we actually think that will be closer to INR1,700 crore INR800 crores of net-debt over the next, let’s say, two to three years and that will be a factor of really the cash generation some asset recycling. So we see INR1,70 crore INR1,800 crores of net-debt in net-debt in the business and this is without any so to say expectation of a capital raise or an external capital.
Yashowardhan Agarwal
Okay. So this is after the asset recycling that we are trying right.
Ashish Jakhanwala
Yeah, some bit of asset recycling. The amount from asset recycling, as we’ve indicated earlier is not very substantial about INR200 odd crores. So about INR200 crores from asset recycling and the balance, let’s say, about INR100 crores INR150 crores is the incremental cash that the business will generate because of the efforts we are making. So that will take our net-debt from INR2,000 crores to INR1,700 crores.
Yashowardhan Agarwal
Got it, sir. And sir, in terms of asset recycling, if you can share how many loans are you expected to recycle? So in terms of total room that we could see after next, let’s say, one or two years if our cycling strategy is successful, what will be the total reduction in number of rooms? Also and is there going to be an impact if the
Ashish Jakhanwala
Assets that we are considering for asset recycling are — have to follow the following criteria. Number-one, the contribution of EBITDA from those assets should be I would say, the word minuscule and therefore, they really don’t impact the path that we’ve set for the company in terms of where it is headed in terms of revenue, EBITDA and PAT. So these are assets which don’t really contribute significantly to our current revenue or EBITDA. Second, obviously, we want to recycle capital in-markets where, you know we believe in the market, but we believe we have a better opportunity of that capital going to some other markets, right? So we expect the room count to be not substantially different, Yash. I would think that cumulative rooms across these assets that we would recycle would be perhaps 200 250 rooms. We are adding far more inventory in our portfolio and the recycling is being done of assets which are in the mid-scale space and therefore, the revenue contribution is also not substantial.
Yashowardhan Agarwal
Got it, sir. Thanks sir. Just one last question. It’s been shared the RevPA growth city-wise for Bangalore, Hyderabad, Pune and Delhi.
Ashish Jakhanwala
Okay. So I’ll just give me a second. So we saw for the quarter-ending December 31st Hyderabad RevPAR growth was 24%, Bangalore was 20%, Pune was 17%. Yeah, that’s the RevPAR growth that we’ve seen. We have seen some smaller markets grow disproportionately like at 28% and Koimmut at 31%, but I don’t take those things — I take those things a pinch of salt because there is a base which is playing into those numbers, right? This started from a very low-base. So my excitement continues to be about Hyderabad being at a very large base last year and yet growing at 24% RevPAR year-on-year, same for Bangalore. Our Bangalore hotels are some of the best-performing hotels in the portfolio. And yet we saw a RevPAR growth of 20% year-on-year and that’s for same-store. So no impact of acquisitions and disposals on that. And Pune also remained pretty impressive at actually 17% RevPAR growth.
Yashowardhan Agarwal
Thanks. Got it, sir. So sir, our performance is in-line with the industry.
Operator
Please rejoin the queue for further questions. Thank you. Ladies and gentlemen, to ask a question, you may please press star and one. The next question is from the line of Aditya Singh from RoboCapital. Please go-ahead.
Aditya Singh
Hi, thank you for the opportunity. Sir, going to the Page 18 of, can you please explain me what are the new projects or new keys that we are adding in FY ’25 and ’26. For instance, serial number two hotel in Express Kolkata that belongs to the new opening category. So that will be new keys, right?
Ashish Jakhanwala
That’s right.
Aditya Singh
And the conversion will be just a conversion from X to Y, right?
Ashish Jakhanwala
Yeah. So good question. Let me clarify it for you and Nakul, just help me here. So in FY ’25, Noida was a conversion. It does not change the total inventory reported by us. The Calcutta 111 rooms and the new 56 rooms in Bangalore Whitefield adding up to 170 rooms is incremental inventory. Yes. FY ’26, the 54 rooms in Sheraton, Hyderabad and 22 rooms in are new rooms. They are not renovated. They’re actually increase in the inventory. So we see about 80 odd rooms, 76 odd rooms improving in FY ’26. Then if you look at Punek,, Delhi, points, Jaipur, these are all conversions, so they don’t change the total inventory. The Chennai, which is 86 rooms is again an additional inventory, which will add to that total count. And then of course, that W Hyderabad, 170 rooms is a completely new hotel and in and review portfolio of Bangalore of the intended 362 rooms, 142 is existing to be rebranded and the balance 220 odd rooms is the new inventory. So that’s really — I’ll take you through the entire summary of growth projects, where there is a conversion and where there is actually an impact on the total inventory.
Aditya Singh
All right. I got my answer. Thank you.
Ashish Jakhanwala
Thanks,.
Operator
Thank you. We have the next question from the line of Kaushik from Trader Capital Management. Please go-ahead.
Kaushik
Yeah. Hi, Ashish. Actually, I want medium-term perspective, three years out, where do you see the revenue number and the EBITDA margin number near-term.
Ashish Jakhanwala
So you know we will not give a guidance on three years forward. But I will do — I do refer you to page number 17 of our presentation, you know, if you look at how we are transforming the portfolio construct,, right, all the answers lie therein, right. So for instance, we have 1,000 rooms currently operating at 43 lakhs per key. We have 2,100 rooms operating at about 22 lakhs per key revenue and we have about 1,500 rooms operating at about 12 lakhs per key. When you look at the portfolio construct three years forward, even if I take the same revenue per key that I get today, this demonstrates about a 35% overall revenue growth, right? So if we are doing about INR1,100 crores today on a trailing 12-month basis, there is about a 34% 35% embedded growth just as to how the portfolio is transforming. And I’m estimating or I’m making an assumption that total revenue growth is now zero from now till then because that’s one place where I think as a management, we kind of have our own point-of-view, which is that revenue growth will remain to be in single high — high-single-digits to early double-digits. So — but that calculation is brought off forecasting this. But what we’re very certain is just the reconstruction of the portfolio has an embedded 35% revenue upside for which, A, we don’t need to acquire anything further; B, we don’t need any capital debt or equity and all of that is going to be funded through both internal efforts and internal accruals. Great. I’m great. I’m not giving you a number. No problem. No. It has a number.
Kaushik
Yeah, yeah. I got the direction. And the next question is some longer-term question. So how do you see Sami being the operator, right, hotel operator? How do you see in the next, I mean, longer-term, what is your ambition to scale number of keys or to churn more number of EBITDA? What is your vision or aspiration as a SAMI brand? That’s all I do.
Ashish Jakhanwala
Sami, first of all, we don’t chase vanity numbers like number of rooms, Kauce. I’ll be very honest. We clearly want to create a company of substance and the substance will reflect in revenue, in operating margins, which is EBITDA and also the earnings really, which is the PAT, okay. And I think where we have positioned the company today, which is a good base of hotels, substantial growth, which has already been sort of acquired over the last two years, a free-cash coming from the business. I’m fairly confident that we will unlock tremendous value both on P&L and also on the balance sheet, right? And what we unlock in the P&L will be reflected in terms of revenue and EBITDA and what we unlock in the balance sheet will be obviously then flowed around to our PAT and net earnings, right? So we believe that in the next, let’s say, five-odd years, this company will be nothing of what you see today because of the internal capabilities that we have created, both on growth and also on how we will continue to strengthen our balance sheet.
Kaushik
That’s great, great. Yes. But we’ll be growing at 10% to 12% CAGR consistently and churning higher EBITDA margin, right? That is how we’ll be positioning for five odd years.
Ashish Jakhanwala
Yeah. So, again, we do the math. If I — we just have to come to office in the morning, be here till nine in the evening, work hard, work honestly and you have 35% growth on Slide number 17 without markets growing even 1%, right. If the markets grow at 6%, 7%, that 35% growth can easily become 50% 55% growth over the next three to four years. So that really gives you that early double-digit total revenue growth. We have so-far look at our quarter-on-quarter presentations and we try and explain same-store separate to total portfolio, but we have always delivered almost at 1.25 to 1.4 multiple of EBITDA growth over revenue growth. So which means if our revenue growth is 10%, the EBITDA growth in a bad quarter will be 12.5%, 13% in a good quarter will be 14% to 14% 14.5%. So we think that we have the right ingredients now to sustain that growth over the next four to five years. And as I said, without much dependencies on external environment.
Kaushik
Good, good. All the best,.
Ashish Jakhanwala
Thank you.
Operator
Thank you. Ladies and gentlemen, if you wish to ask questions, you may please press star and 1 on your touchstone telephones. The next question is from the line of Yash Dharak from RSP and Ventures Private Limited. Please go-ahead, your line has been unmuted. You may proceed with your question.
Yash Darak
Hello. Go-ahead. Hello.
Operator
You may proceed, sir. You are audible.
Yash Darak
Yeah. So sir, my question is on how is Q3 based on the occupancy seasonally weak quarter because as we are not a business hotel and because of the holidays, corporate holidays, we see a dip in the occupancy in Q3?
Ashish Jakhanwala
Yash, are you asking, do we see a dip in occupancy in-quarter three?
Yash Darak
Yes, yes.
Ashish Jakhanwala
So Yash, we — actually quarter three is probably the second-best quarter for our business traditionally, our quarter-four being the best and you’re right, quarter three tends to kind of be slightly lower because we have the two holiday seasons, Diwali Decera and Christmas New Year. So we do see some redundancies in our business hotel portfolio and which is most of our portfolio in that quarter, whereas quarter-four once people go back to work, you know they tend to — we tend to see pretty strong performance through that, right? But I would think the occupancies remain — if you look at last year, quarter three was 72.6% portfolio occupancy, same-store and quarter-four was 77.2%. So quarter three is same as quarter one and quarter two in terms of occupancies. The rate does tend to move 10% up because on non-holiday days, you have strong demand. And in-quarter four, you obviously take advantage of the fact that you have high occupancies and good rates, but you don’t really get to lose that, I would say almost three or four weeks depending on between Diwali, the Serra, Christmas, New Year. The Diwali, of course, one needs to be cautious follows in the calendar. So may sometimes be on the edge of quarter two and quarter three, sometimes squarely in-quarter three. So yeah, to that extent, quarter-four is always a better quarter for us than quarter three.
Yash Darak
Got it, sir. Thank you. And last question is on the bookkeeping side. So if there was not this one-off cost in the interest of INR6.5 crores, so that — so our interest would have been around INR55 crores, am I — is that understanding right?
Ashish Jakhanwala
Yeah. So actually, Yash, the interest was INR55 crores. This loan that we refinanced where the pricing went down from 12% to 9.5 actually from 13.5% to 9.3%. The upfront fee that we had paid to that lender two years back, that was amortized over the tenure of the loan. But because we refinanced the loan much earlier, the unamortized portion had to be taken as an expense to our P&L. So that INR6.5 crores was a completely non-cash impact on the P&L. The actual interest expense was still about INR55 crores.
Yash Darak
Got it. Got it. Thank you so much.
Ashish Jakhanwala
Actually, interest cost is slightly lower. That’s total finance cost, including some of the leasehold accounting impact which comes in our finance cost.
Yash Darak
Okay. Okay. Thank you so much.
Ashish Jakhanwala
Thank you, Yarsh.
Operator
Thank you. The next question is from the line of Akshat Bharati from Flute Aura Enterprises Private Limited. Please go-ahead., your line has been unmuted. You may proceed with your question. MR. Akshat Bharati, are we audible to you? Thank you. As there’s no response from the current participant, we will move to the next question, which will be from the line of Sunil Jain from Nirmal Bang Securities Private Limited. Please go-ahead.
Sunil Jain
Yeah thanks for taking my question. So you said that interest cost has come down. So though this quarter it was INR55, so it can come down in the coming quarters?
Rajat Mehra
It should come down in the coming quarter because this quarter actually had this one-time hit. Otherwise, in general, it will also be reducing because the fact that the overall cost of borrowing also from the previous quarter has gone down. We are now at a weighted-average cost of 9.4%. So our overall actual interest cost that is serviced into the bank, not the one which is actually the P&L hit will be circularly at about INR50-odd crores, plus the other, as Ashish said, the lease expense and other things. We are looking at a reduction in what was reported as the finance cost in the quarter three vis-a-vis that the quarter-four will be definitely lower.
Sunil Jain
And sir, the second question about recycling. So have you identified any of the assets which you want to recycle or has done some exercise or work?
Ashish Jakhanwala
Yeah. So we have identified the assets. Our confidence stems from the current conversations and offers that we have, which we are obviously negotiating and doing further diligence in terms of actionability. So as it has been identified, we have a bank who is helping us with the process and we have some degree of interest, which gives us the confidence about committing to the asset recycling approach.
Sunil Jain
Okay. Thank you very much.
Ashish Jakhanwala
Thank you.
Operator
Thank you. The next question is from the line of Daria Trivedi from DJD Investments. Please go-ahead.
Dhairya Trivedi
Good afternoon, Ashish and team, and congratulations on walking the talk as far as far as the numbers are concerned. Now I had a couple of questions. One is, are we expecting any revenue loss in FY ’27 when the four points Pune and the Delhi converts to and respectively.
Ashish Jakhanwala
Not really. So Delhi, of course, no impact because that hotel hardly contributed anything to our numbers, at least in terms of EBITDA. The four points in Pune conversion is being done on a phase-wise manner. And actually if you see the revenue improvement that we are seeing because of the conversion to manage pretty much covers for the part inventory that we’ll keep taking for renovation during the year. So we really don’t see any — they could be marginal, but nothing material in terms of the impact of renovations on the performance of the hotel.
Dhairya Trivedi
Understood. And what would be the EBITDA per key for the holiday in portfolio for Noida, and Bangalore, the weighted EBITDA per key.
Ashish Jakhanwala
So the weighted-average EBITDA per key for the Express portfolio is about INR5.2 lakh, INR5 lakh per key deep — okay, so let’s break it up. Is an average market so-far in terms of performance within our portfolio. We’re fairly excited that even though we are adding only 56 rooms in Bangalore, the room size there is actually significantly larger than our existing hotel. And we are going to price that at a substantial premium to our existing hotel. So in terms of weighted-average, the impact of the 56 rooms almost equivalent to that of a INR7580 room hotel, right? And Calcutta is a good market, especially at that price point. So the overall inventory addition of 330-odd rooms should operate at or at premium to the current average in terms of EBITDA per key.
Dhairya Trivedi
Okay. And as far as Sherit in Hyderabad and high Pune, fair to assume roughly INR20 lakh to INR22 lakh per key EBITDA.
Ashish Jakhanwala
The mice won’t come here for around 20 lakh. Yeah, 20 lakhs per key. So, we are very excited, because it’s a market which has been doing really well. I just gave the numbers earlier where Hyderabad RevPA growth was 24% in the last quarter. And therefore in such a strong market with no new supply, when you immediately add about 55 odd rooms from existing operating hotels. Two things happen. A, of course, the revenue per key is pretty much the same that you get-in existing hotel. The flow-throughs from that revenue should be, in our opinion, upwards of 60% because the existing hotel is operating at a 43% 44% EBITDA margin, then a lot of some cost is captured by that and the new room should operate at a fairly high-margin, right? So as it was very exciting adding those 55 rooms. By the way, the current quarter did see a negligible reduction in our rental income because those offices are the places we are converting to the additional rooms. But as I said, by Septem, October, we have those rooms open well in time for H2. And same for Pune, where we’ve seen a RevPAR growth of 17% in the last quarter, we are actually adding 22 apartments. So these are between studio one-bedroom, two-bedroom apartments and we actually think that they should continue — they would perform really well. So at minimum, we should expect about a INR20 lakhs per key EBITDA on those assets starting H2 FY ’26.
Dhairya Trivedi
Got it, got it. This means that the W City Hyderabad when it opens, IDC should be much higher given that it’s an upper-upscale asset.
Ashish Jakhanwala
So Nitin, let’s take some numbers for context. Our coachyard in Bangalore, Road does an EBITDA of about INR31 lakhs per key, you know. It’s clearly an outperformer. It doesn’t rate of INR16,000 high occupancies. But what we are seeing interestingly in our field in Hyderabad,. It is ramping-up really quickly, trying to catch-up with our pay field in outer, Bangalore, right? So it’s almost a raise that Bangalore used to be at a rate of 8.5%. Field — Hyderabad was at a rate of 5.5%. Pay field Hyderabad has gone at a rate of 7.5%, sales Bangalore has gone to a rate of 9.5%, right? So we actually think that City is very mature, very low vacancy, constant news of GCC’s opening there. The latest news this morning was McDonald’s setting up their global capability center in, no new supply. I think that market with a brand like W and an operator like Marriott and the location that we have, we should expect it to deliver core yard level performance in future, which is actually 30 lakhs per key.
Dhairya Trivedi
Got it, got it. And we are expecting this to open in the second-half of FY ’27. Is that understanding right?
Ashish Jakhanwala
Yeah, we should get — we should get a quarter plus for FY ’27 for this hotel.
Dhairya Trivedi
Okay. Okay, perfect. Thank you so much. Thank you and all the best.
Ashish Jakhanwala
Thank you very much.
Operator
Thank you. The next question is from the line of Srina Rayan Mishra from Baroda BNP Paribas. Please go-ahead.
Shrinarayan Mishra
Thank you for the opportunity. Can you hear me?
Ashish Jakhanwala
Yes, we can.
Shrinarayan Mishra
So sir, my first question is, will it be possible to give the break — ROC breakup between the three segments? I mean perhaps scale-up and mid scale and up scale and upscale
Ashish Jakhanwala
Yeah just give us a second you know so the this Nakul FY25 so the — this is Rossi or NOI, Rossi. So the upscale segment will deliver about 16-odd percent Rossi. Actually, if you ask me the — it’s pretty similar. Actually, it’s only the upper mid scale, because of ACIC, which is at about 8%, 9%, the mid-scale is at about and the upper-upscale is about 15.5%, 16% and we actually expect upper mid-scale also to get to about 14% 15% once ACIC is fully — we get what we need from ACIC, including conversions and all of that. So yeah, that’s the number for you right now. But one good news and that only a just disclaimer, it’s not our guidance on raw fees. It’s just how good can good be. We have one hotel in our Holiday and Express portfolio in Hyderabad, which is now almost getting to 50% plus Ross, right? Now again, I’ll repeat the disclaimer that does not mean that we are saying our portfolio will get to 50%. But often we are asking ourselves that what’s the real headroom. And the way we’ve constructed our portfolio, Karan started this question, mid-scale, upper, mid-scale, upscale. We actually feel that if the RevPAR cycle continues for which the data demonstrates it should continue, our cost basis is actually very, very low in-part of our portfolio. Express is just about 28 lakh 29 lakh per key, right? We actually can see substantial transformation of the ROCE profile as you can see the flow-throughs go straight to the bottom-line and then impact proceeds. So the average is around 14% to 15%, but I was just giving you what we think how good can good really be when a market and an asset hit bullseye.
Shrinarayan Mishra
Okay. So for the — I mean, most matured properties which we would have. So what would be the range of there? Not going to go to the cities.
Ashish Jakhanwala
I think I’ll rather take this question depending on where the city cycle is or a market cycle is. A city like Bangalore for us today and this will not include 20s, right? Yeah. A market like Bangalore today would be sitting at almost 20% plus for us as a market and we have one coachyard, three pay field by Marriott and 2 Express Hotels. So very well spread within the city and within the segment, it’s about a 20% plus in that market. You would have markets like Hyderabad touching mid-teens. You would have markets like Delhi and CR now going towards mid-teens. So you typically see a good profile. And as I said, as the markets mature and start delivering a consistent RevPAR and RevPAR growth, the potential is really to cross that magical 20% number on. Okay.
Shrinarayan Mishra
Okay. Thank you. Thank you so much. Just second question, last one from me. So I was reading through FY ’24 annual report, wherein we have highlighted that ITA and ITAS has been the top contributor to revenues and we are trying to diversify from that. But our recent properties seem to be in those areas. So how is the concentration now? And are we doing anything about that or we are happy with that we — so IT is growing. So we want to be intentionally high concentrated in, let’s say.
Ashish Jakhanwala
Yeah, Srida, so first of all, I think we are seeing a reduced contribution from ITITS sector generally across our portfolio and including in so-called high-tech cities like Bangalore and Hyderabad, right. So on a year-on-year basis, we’ve seen other sectors are kind of contributing relatively more to what they were. It’s not that the absolute business is necessarily reduced from ITITS, but what’s happened is that a lot of growth has come in sectors like — and that’s where things get a little gray. When we talk about startups, a lot of start-ups can also be classified in the IT/ITS sector, right? So this classification is — one needs to kind of be a little careful about how precise or indicative it is. But if it is indicated, we’ve seen ITIPS contribution recede, giving way to other sectors, smaller companies, it could be healthcare, it could be biotech, it could be defense, it could be infrastructure, it could be BFSI consulting, manufacturing and also much smaller companies where tracking the sector becomes difficult, right? So these are multiple small accounts. All of them have kind of taken a higher proportion than ITITS. So I think it’s not that we have a concern around ITITS. We actually see an opportunity where our hotels even in Bangalore and Hyderabad are continuing to see diversification of where the business is coming from.
Shrinarayan Mishra
Okay. Okay. Thank you so much.
Ashish Jakhanwala
Thank you.
Operator
Thank you. Ladies and gentlemen, that was our last question for today. I would now like to hand the conference over to Mr Ashish for closing comments. Over to you, sir.
Ashish Jakhanwala
Thank you so much, everybody. We truly enjoyed the Q&A, which I think leaves little for us to conclude with. As I had mentioned earlier, we remain very excited about having put the company on a path where over the next two to five years, we’ve secured both unlocking value in the P&L and also in the balance sheet and we look-forward to continue to work with all of you as we implement that plan. Thank you, everybody, and talk to you soon. Thank you.
Operator
Thank you. On behalf of Samhi Hotels Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.