SAMHI Hotels Limited (NSE: SAMHI) Q4 2025 Earnings Call dated May. 30, 2025
Corporate Participants:
Ashish Jakhanwala — Managing Director & Chief Executive Officer
Rajat Mehra — Chief Financial Officer
Analysts:
Karan Khanna — Analyst
Jinesh Joshi — Analyst
Unidentified Participant
Pradyunma Choudhary — Analyst
Vaibhav B. Muley — Analyst
Bharat Sheth — Analyst
Pranav Shrimal — Analyst
Nirvana Laha — Analyst
Raghav Malik — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Sami Hotels Limited Q4 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-date of this call. These statements are not the guarantees 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 call, please signal an operator by pressing in 0 on your phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Ashish, MD and CEO, Sami Hotels Limited. Thank you, and over to you, sir.
Ashish Jakhanwala — Managing Director & Chief Executive Officer
Thank you. Good morning, ladies and gentlemen. Welcome to Sami Hotels earnings call for the quarter-ending, 31, 2025. I have with me today Das, who is EVP and Head of Investments; Rajat, who is the CFO; Nakul, who is VP of Investments. We also have on-call our Investor Relation Advisors, Strategic Growth Advisors.
We have uploaded our quarter-four FY ’25 financials and presentations on the exchanges. And I hope everybody had an opportunity to go through the same. To begin with, I would give you all a quick recap of financial year 2025 and what all we’ve achieved thus far. This will also set the pace for our future endeavors as we look at financial year 2026 and beyond. We’ll then have Rajit give a quick snapshot of our quarter-four FY ’25 and full-year FY ’25 financials, following which we will open the floor for Q&A.
For financial year 2025 has truly been a transformational year for Sami as it is our first full financial year post our IPO in September 2023. Our portfolio led by markets in Bangalore, Hyderabad, Pune, NCR continues to drive strong growth in both top-line and bottom-line. Our same-store assets delivered a 16.5% year-on-year RevPAR growth, which led to our group level revenue increasing by 17.5% year-on-year to INR1,150 crores. Flow-throughs and margins remain healthy and EBITDA pre-non cash ESOP was at INR443 crores for the full-year, which sets the pace for strong same-store growth going-forward.
From a growth perspective, we have made two very strong acquisitions this year, which complement our current portfolio and will augment our same-store growth over the next few years. First, as you know, is the acquisition of the operating 142 rooms Trinity Hotel and Whitefield Bangalore. We are in advanced stages of design and development of this asset, which will be converted into a 362 rooms and tribute portfolio, dual branded hotels. On current average rates, we expect this hotel to operate at about INR50 to INR55 lakh per revenue range. So we are looking at an additional INR180 crore to INR200 crores of revenue from this asset on FY ’25 average room rate basis.
Next is a long-term variable lease we have signed in City, Hyderabad for the conversion of an office building to a 170 room hotel being to be managed under Marriott’s W brand. Development has already started and we expect the hotel to open in the second-half of FY ’27. We believe that the strength of the market, a very strong and recognizable brand and the product shall position the hotel towards the top of the comp set with revenues per key upwards of INR60 lakhs, which will add another INR100 crores of total revenue on an FY ’25 room basis for this hotel.
In addition to the above, we have 300 odd new rooms within the Holiday Express portfolio in, Noida and Whitefield Bangalore, which are now operational. Add to that the 54 new rooms in Sheriton, Hyderabad and 22 rooms in Pune, you will start seeing incremental revenues coming from this new inventory in FY ’26 adding to our same-store growth. Next is the milestone strategic partnership we have established with GIC, Singapore’s sovereign wealth Fund. GIC brings unparalleled institutional capabilities for us to benefit from.
In addition to committing INR750 crores of capital, of which INR580 crores have been received as of May 27. This partnership has multiple benefits for. It strengthens our balance sheet by taking a net-debt to EBITDA down to 3.2 times on a FY ’25 basis, thus unlocking substantial free growth — free-cash flow generation going-forward. It provides us INR150 crores of capex funding for the Western Tribute portfolio Whitefield development where there is about INR375 crores of pending capex. It gives us access to a marquee institutional investor and capital partner in GIC to accelerate our growth.
With a strong balance sheet and significant freeing up of cash from operations post the debt reduction, we are now focused on growing our platform using our time-tested acquisition and conversion strategy, but also increasing through long-term variable leases. We have visibility of an actionable pipeline in our core markets. We are also very pleased to inform you that this was our first full-year of profit, obviously, after we’ve gone public.
With this, now I’ll request Rajit to give us a summary of our financial performance for the quarter and the full-year and over to you, Rajit.
Rajat Mehra — Chief Financial Officer
Thank you, Ashish. Good morning, everybody. It gives me immense pleasure to announce Fami’s financial performance for the quarter-ending, 31 March 2025. On same-store assets, we have recorded a healthy 15.8% year-on-year growth in top-line for the quarter, resulting in an EBITDA growth of 22%. Complementing this is the ACIC portfolio, which now has crossed 40% milestone after multiple cost intervention steps taken over in the last 18 months since the acquisition. We will now truly unlock the value of ACIC portfolio in FY ’26 and FY ’27 once the revenue management of Marriott kicks-in and we convert the Pune and Jaipur asset to Cotyard by Marriott and Tribute portfolio respectively.
The net result of this is a consolidated income of INR324 crores for the quarter-ending, 31 March 2025, representing a year-on-year growth of 12%. Consolidated EBITDA for the quarter stood at INR131 crores with a year-on-year growth of 21%. After accounting for a non-cash ESOP expense of INR4.4 crores, our reported consolidated EBITDA for the quarter stood at INR126 crores, delivering a 31% year-on-year growth. The PBT for the quarter stood at INR42 crores and accounting for exceptional items, the PAT is INR46 crores. I’m also happy to report that on a full-year basis, we have reported a top-line of INR1,150 crores in the financial year 2025, delivering a growth of 18% year-on-year-on-year basis.
Consolidated EBITDA pre-ESOP stood at INR443 crores, growing at 27% on a year-on-year basis, which gives us a strong base to deliver future growth. ESOP cost stood at INR18 crores for the year, which will reduce to INR10 crores in FY ’26 and will stabilize at that level. The depreciation and amortization expense are largely stable at INR117 crores. Our overall finance cost stood at INR229 crores, which includes INR30 crores of non-cash expenses relating to amortization of processing fees, interest on lease liability and other non-cash accounting entries. Accounting for ESOP costs, depreciation and finance expenses, we have reported a profit before-tax PBT of INR80 crores.
Further accounting for exceptional items as mentioned, our reported profit-after-tax was INR86 crores for the full financial year. From a capital structure perspective, our net-debt as on, 31 March 2025, stood at INR1,967 crores with a weighted-average cost of debt of 9.2% with a 20 bps reduction in our cost from the previous quarter. With GIC capital infusion, our net-debt is now around INR1,430 crores, mark taking our net-debt down to 3.2 times, thus materially strengthening our balance sheet. After adjusting for the INR250 crores of capital allocated towards growth projects such as Whitefield, which has negligible EBITDA contribution in our financials at the current state.
Our net-debt to EBITDA for our operating assets stood at 2.7 times. The growth in EBITDA of our same-store assets, coupled with the unlocking of value in our balance sheet post the GIC transaction will lead to a strong cash flows generation for the funding of the capex commitment that we have in the future and further accelerate our growth through tactical merchant and acquisition opportunities and long-term Levers. With this, now I open the floor for questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star in one on the touchton telephone. If you wish to hold yourself from the question queue, you may press star N2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star N1 to ask the question. The first question is from the line of Karan Khanna from Amit Capital. Please go-ahead.
Karan Khanna
Thanks and congrats team on the strong set of results for 4Q., if I look at Slide 7,
Operator
You may proceed with your question, please.
Karan Khanna
Hello. Am I audible?
Operator
Yes.
Karan Khanna
Hello.
Operator
Yes,
Karan Khanna
Hello, am I audible?
Operator
Go-ahead.
Karan Khanna
Yeah., sir, first question, if I look at Slides 22 through to 24 of your presentation, what I can see is that the occupancies for upper mid-scale and the mid-scale hotels seem to be peaking out. You’ve seen, let’s say, a downward trend in your mid-scale occupancies, while even in case of upper mid-scale, it seems to be stable quarter-on-quarter and year-on-year. So is that a trend that you’re seeing where supply seems to have caught up on the mid-scale side because of which occupancies have been peaking out? Or is it your conscious strategy to focus more on the RevPARs rather than the occupancies in this segment?
Ashish Jakhanwala
So currently the strong RevPAR growth is a clear demonstration of the fact that there is no supply pressure on the performance. I think every operator and owner understands that our revenue-driven by rate is more profitable than a revenue-driven by just volumes. So this is a classic revenue management, lead management play. We see absolutely no stress from supply and therefore the RevPAR performance continues to be very strong, driven by average rates.
Karan Khanna
Yeah. If you look at the RevPAR for our overall portfolio, this was up 18% than queue,
Operator
We are losing your audio.
Karan Khanna
Hello, is better?
Ashish Jakhanwala
Yeah.
Karan Khanna
So I hope this is better.
Ashish Jakhanwala
Yeah, Karan, go-ahead with your question.
Karan Khanna
Yeah. So I think the second question I think was if you look at the headcount for your overall portfolio, this was up 18% Y-o-Y because the revenues were up just 14%. So could you shed some light on the difference? And as a follow-up, I think in the previous calls, you’ve spoken about ramping-up the SMB offering. So how is that progressing?
Ashish Jakhanwala
Yes. So Karan, we are seeing a stronger growth in-room revenues, largely driven by demand-supply airlines office. And that’s why you would see in our portfolio at least the RevPAR continuing to remain ahead of total revenue growth. That’s number-one. In terms of food and beverage, the steps have been taken, but they’ll start showing results towards, I would say, H2 of FY ’26, things like the renovation of the ballroom in Sheriton Hyde, improvement of the ballroom and Pune, some of the F&B initiatives we are taking for our upscale hotels. So all of those efforts are underway with an intent that we should start seeing an equal contribution from food and beverage growth as we are seeing in-room revenue growth.
Karan Khanna
Yeah. And secondly, you seem to reverse some provisions for impairment I think for the land litigation. So could you share the case? And are you expecting any developments happening here anytime soon or did it pertain into some I think claim from the on the matter?
Ashish Jakhanwala
Yeah. So we have made provisions in-quarter three of FY ’24. As of today, of course, we had written-off the value of that asset completely. We have fairly constructive dialog going on with MIDC, which is the relevant authority current. As a team bases those conversations, we feel fairly confident that over the next quarter or two, we would get a written confirmation from MIDC, which will then allow us to write-back that value of the asset into our books.
Karan Khanna
So — and my last question for the ACIC portfolio, while the margin margins seem to be converging again this is very encouraging, the RevPAR seem to be lagging compared to the same-store portfolio. So, what was the RevPAR growth for HCIC portfolio in Q1 FY ’25 when your expectation is going ahead on the same?
Ashish Jakhanwala
What we are expecting is, Karan, that in ACIC, we need to remember that we have the four points in Pune and the four points in Jaipur, which are being prepped for renovation and rebranding. So obviously, and these are large hotels, Pune is one of the second-largest hotel in the ACIC portfolio after Hyderabad. Of this hotels that are not due for rebranding, let’s say, Hyderabad and all, we have seen pretty impressive year-on-year revenue growth starting quarter-four actually.
Prior to that because it was self-managed, the focus was on cost management. Post Marriott taking over the portfolio, we’ve seen encouraging revenue growth, but we need to be mindful of the fact that there are two hotels in NCIC, which will have a deferred income growth on account of the pending renovations. 13% for the three assets which are not due for renovation. So we’ve seen in-quarter four total revenue growth of 13%, RevPA growth of 13%, but the two other assets are due for renovation. So there you will see flattish trends.
Karan Khanna
Sure. Thank you and all the best.
Ashish Jakhanwala
Thanks, sir.
Operator
Thank you. Next question is from the line of Jinesh Joshi from PL Capital. Please go-ahead.
Jinesh Joshi
Yeah. Thanks for the opportunity. Sir, my question is on the sale of the Chennai hotel. I think when we did this transaction a couple of months back, the sale price was approximately INR53 crores. However, in the result press release, we have stated that the sale price is approximately INR3 crores and we have recorded some exceptional loss on that exit. So if you can just explain this part a bit better. And also a related follow-up is that given we have an asset recycling plan in-place and we may choose to exit certain non-performing assets in future as well. So is there a possibility that you might see such losses come through in future whenever we plan to basically exit?
Ashish Jakhanwala
So, just two clarifications. The sale price is INR53 crores. I don’t know what
Rajat Mehra
There was a debt in that particular asset, close to about INR50 odd crores. So net proceeds —
Ashish Jakhanwala
INR30 crores of net proceeds post settling the leverage on that asset, but the sale price was INR53 crores, that’s point one. Point two, this was an asset acquired through the ACIC portfolio where at the time of the acquisition, we had to create certain goodwill. So what we have basically done is written-off the goodwill, Jinesh. Otherwise, we have sold the asset at a fair-value.
Answering your question about subsequent assets, there are very few assets where we have this issue of, I would say, material goodwill on-top of the asset value. The assets that we are currently reviewing for asset recycling, none of those assets have any such issue. So we do not expect any such accounting adjustments to come for their future asset it will be positive. Yeah. Actually, some of those assets based on the current discussions will end-up leading to profit rather than any accounting losses.
Jinesh Joshi
Understood. And sir, in response to the previous participant’s question, you mentioned that given you are expecting a favorable verdict from MIDP. There could be some write-back also which could come through as you saw in this quarter. So can you just share what was the total written-down amount and how much of it can be expected to be written back.
Rajat Mehra
Yes. So Jinesh, we actually took a total hit of INR76 crores in our December quarter financials in FY ’24. When we get the favorable order, the entire amount will actually be reversed. There cannot be any partial reversal. It’s a very binary situation. Once the order is there in our hand, which will be favorable since our discussions as of now, there’ll be a complete reversal of INR576 crores in our balance sheet and the P&L.
Jinesh Joshi
Sure. So this reversal that happened in this quarter, it pertains to this only, right? This impacted only.
Rajat Mehra
Pertains to some other properties. The INR76 crores of reversal still has not been taken into consideration. As we speak, we have close to about INR138 crores worth of impairment that we have still not reversed. That’s an opportunity which is available for us in the future, which includes the INR76 crores that we are talking about.
Ashish Jakhanwala
So Jinesh, the number that has come in this current quarter is not for the Nabi Mumbai, it’s certain impairment provisions we had created during COVID times, right? And some of that are being reversed as we’ve seen consistently strong performance through the last several quarters, right? And In addition to what has been taken in the current quarter, as Rajit clarified, there is approximately INR130 odd crores of — INR138 crores of potential impairment reversals and INR76 crores is a part of that INR138 crores. So even if that Navi Mumbai does not come, you’re potentially still talking about a INR50 crore INR60 crores of impairment reversals to happen over the course of the next few quarters,
Rajat Mehra
Maybe at the end-of-the year.
Ashish Jakhanwala
End-of-the year actually, sorry, impairment actually will be done at the end-of-the year.
Jinesh Joshi
Understood. Understood. Thank you so much, sir. All the best.
Ashish Jakhanwala
Thank you. Thank you, Jinesh.
Operator
Thank you. Next question is from the line of from Kotak Securities. Please go-ahead.
Unidentified Participant
Yeah. Hi, Ashish. Just a question. If I look at my quarter-four assets income that’s grown by about 14%, your same-store RevPAR growth is closer to about 20%. How do you reconcile that two, is there any — I would have typically expected. So is it that the other revenues are growing at a slower pace or what should be the indate if I were to look at quarter-four asset income versus quarter-four FY ’25, asset income, what should be the implicit sort of our room rental growth against that 14% overall revenue growth. I don’t know if you have any understand,
Ashish Jakhanwala
Thank you for asking that. Let me clarify it will be benefit to all. So as you rightly said, if you look at the same-store for quarter-four, the total RevPAR growth was about 20%. And if you look at Page number 20 — sorry, page number 16, where we have given the bridge for quarter-four, the same-store revenue growth was about 16%. So there is this 4% drag because of the F&B and other income during the quarter where the total RevPAR growth has kind of — you know is higher than the total revenue growth. A large part of that is really to do with, if you ask me the — what’s happening in the food and beverage, where we are seeing fairly muted growth year-on-year. And as I mentioned earlier in response to Karan’s question, actually growth is about 6.6% year-on-year to be precise, right? For the quarter. Yeah, for the relevant quarter, the quarter-four.
Unidentified Participant
Okay. Okay.
Ashish Jakhanwala
So that is a drag. But having said that, as we’ve explained earlier, two of our big ballrooms, the one in Hydrogen Sea and the other one in the Sherid and Hyderabad are now under planning for renovation and you would see in H2, because of that work being completed, the dilutive effect of prudent beverage on total revenue will start to taper off.
Unidentified Participant
Okay. So we should move again to the overall RevPAR growth more or less reflecting in the revenue growth number. Because the SMB will be more RevPAR growth.
Ashish Jakhanwala
Yeah, but, we need to be mindful of the fact that RevPAR growth, I would call expects in our portfolio to remain slightly ahead of the total revenue growth because we don’t expect or underwrite the FMB to grow at the same momentum as we can expect rooms to grow. I mean, in markets like Bangalore and Hyderabad, which are big market for us, the demand-supply imbalance for guest rooms is leading to a — I mean just to put things in context, in a market like Bangalore in-quarter four, we saw a total RevPAR growth of 40% year-on-year.
Now when you see rooms growth being so bullish, it will be difficult for SMB to catch-up, honestly, right? Set our expectations for RevPAR growth to remain slightly higher than the total revenue, but 6.6% is also not the right number for SMB growth. The growth should grow in double-digits, right, so that the dilutive effect is not so large.
Unidentified Participant
Yeah, no, enough. Thanks so much, Ashish.
Ashish Jakhanwala
Thanks, Mr
Operator
Thank you. And next question is from the line of from JM Financial. Please go-ahead.
Pradyunma Choudhary
Yeah, hi, congrats on a good set of numbers. I just had one question. What was the Y-o-Y growth in Q4 for the ACICI — ACIC portfolio?
Ashish Jakhanwala
Just give us a second growth was 10%. So for the — okay, overall and then for the three assets which are not under renovation. So the three assets which are not under renovation, the Y-o-Y growth was 12.9% and RevPAR, 6% and 6% was total revenue growth, 10.11% was EBITDA growth. So those are the three numbers. If we add the Jaipur and Pune assets, which are now due for renovation, which is where the total income growth becomes flattish actually. It is about 3.6%, but the EBITDA growth is still 8.2%.
Pradyunma Choudhary
Okay. So if you general asset, then the total revenue growth is getting plateaued. So basically, there’s been a in which is the price.
Ashish Jakhanwala
In — no, in both Pune and Jaipur, if you take them together, there is still a growth of about 3.6% or flat about 0.5%. But EBITDA growth is about 4%.
Pradyunma Choudhary
Understood. And when am I expecting these two assets to be converted?
Ashish Jakhanwala
So the work on Pune has actually started. We are in the process of completing the mock-up rooms. And through this year, we’ll continue with the renovation. As you know, we are not shutting down the hotel for renovation. So therefore, we don’t want to lose the existing revenue and profits we’re getting from that hotel, right? So the mock-up rooms are underway should be ready in the next month and a half or so. And immediately after that the work will start. So we expect that by same time next year, we would have the hotel fully renovated and rebranded to a by Marriott.
Pradyunma Choudhary
All right. And what about? Yeah.
Ashish Jakhanwala
Jaipur will start same time next year because we want to do the full renovation in the — so unlike Hune, Jaipur has high seasonality, we see a significant difference in the revenues in H2 and H1 in Jaipur market largely because it’s got a lot of inbound. So the Jaipur renovation will really happen between, I would say, April 2026 and I would say around August of 2026.
Pradyunma Choudhary
Okay, we just want to ensure that for H2, it’s available basically H2 FY ’27 digit.
Ashish Jakhanwala
You book when you book 80% of your profits in that hotel in H2 really, you know. So you want to make sure that you won’t lose much in the H1. And actually because of the renovation and rebranding, you will recover more than enough for whatever you lose in H1 in the H2 with the revised cash.
Pradyunma Choudhary
So then right now going on, right? Japan. So why is doing in-line with the overall industry.
Ashish Jakhanwala
No, so Jaipur because needs the renovation and rebranding for them until the time we don’t improve the product, we really don’t expect — it’s being held in operation, but otherwise, there is nothing for us in terms of products to be able to push it in comparison to the competition.
Pradyunma Choudhary
Understood. Understood. Thank you and all the best.
Ashish Jakhanwala
Thank you.
Operator
Thank you. Next question is from the line of Mole from YES Securities. Please go-ahead.
Vaibhav B. Muley
Hi, Ashish. Ashish. Congratulations on a strong set of numbers. First question on the Bangalore market. You said you saw a total RevPAR growth of 40% year-on-year, which is very — actually very fabulous, but significantly higher than your peer set, which is operating in a similar location as you. So I just wanted to understand the reason of such strong RevPAR growth for Bangalore market.
Ashish Jakhanwala
So whether you know, I always therefore caution us from generalizing anything including market performances, you know. I mean, today Bangalore is a very large hotel market. It has very defined precincts and micro markets, which don’t always necessarily behave in sync, right? We benefit from two of our hotels, which is a one single hotel complex coach at Bayfield Bangalore, situated in Outering Road Bangalore. And that stretch of road has seen to the best of our knowledge, has seen the strongest absorption and therefore performance growth also.
So it’s a very micro-market driven outcome and therefore, there could be some discrepancies, so to say between us and the broader Bangalore peer set. But yeah, in our hotel, for the quarter — not I mean for our portfolio in Bangalore, we saw 40% Y-o-Y for the quarter and for the entire year also it was 22.8% actually. So it was not 1/4 wonder. For the whole fiscal year FY ’25, we saw the RevPAR for the city move from 5,120 to 6,290, which is a growth of about 22.8%.
Vaibhav B. Muley
Correct. But now we are opening Holiday in Express in Whitefield, Bangalore only. It’s under pre-opening. So do you expect similar RevPAR trend for This property as well?
Ashish Jakhanwala
Yeah. So what will also happen is that — and while the inventory is small, whether it’s 56 rooms and our Bangalore inventory pool is pretty large actually. But if you see the Holiday Express, the current product is 14 square meter and has been doing really well. It’s got about 160 odd rooms. The 56 rooms addition is actually 17 square meter and they are being positioned at a higher category. So our actual RevPAR realization for the incremental inventory would be substantially higher than from the existing inventory in that hotel. So we do expect that to obviously also have a positive impact. Generally, during the current year, we’ve seen North Bangalore where we have a Fair appeal by Marriott and a Holiday Express do extremely well.
Our and Road. Outer Ring Road, the and continue to do really well. And then in Whitefield, we have two hotels, operational one is the Trinity that we acquired recently and all three hotels are actually doing reasonably well. So we — so we continue to expect seeing good performance from this market, you know.
Vaibhav B. Muley
Okay. So you don’t expect any sort of moderation in ARR in the coming year.
Ashish Jakhanwala
To be blunt, we are — we have not underwritten such RevPAR growth rates. So we only feel really happy. I — if you’re referring to 40% and 22%, then I will always say it’s moderate your expectations. But I think this market will continue to deliver good double-digit RevPAR growth here.
Vaibhav B. Muley
Okay, great. And just last bit on the renovation side, you said you are renewing two ballrooms. So what is the renovation expense for these two and any other renovation planned in the current year and what is the total R&M expense-related to that?
Ashish Jakhanwala
Okay. So let me take you through. There’s a fair bit happening actually good that you asked that question. So in terms of — in terms of total planned activities, we would have the opening of the additional rooms in Sheritan, Hyderabad and Hydrogen Sea Pune. We — the work is going on. We expect them to be operational in at least starting of H2. Starting of H2, plus/minus a month depending on final consent that we would require. We then would also be renovating the, as I mentioned, the Sheraton ballroom and the ballroom in in addition to the additional rooms there.
The ballroom renovation actually is a low capex. It’s about INR5 crores between the two of — between the two renovations. The room inventory, of course, we’ve given the numbers earlier in terms of what the renovation budget would be. This is the majority of the renovations planned and of course, the work that we start for converting four points Pune to Pune, that would start getting incurred during the current year. Overall, we do expect about INR175 crores to INR200 crores of capital expenditures during the fiscal year FY ’26, of which INR50 crores will be contributed by GIC in the specific Bangalore asset and about, let’s say, INR125-odd crores would be spent by us from our own cash flows.
Vaibhav B. Muley
Understood. And post-renovation for these two ballrooms, do you expect better rates or do you expect occupancy improvement? So what — where-is it currently lacking?
Ashish Jakhanwala
So that — and I will allude to questions earlier about why total income is 15.5% when RevPAR is growing at 20% or 21% and the result is that the total FMB growth is around 6.5%, 7%. Now if you look at our portfolio, majority of our SMB income actually comes from our upscale portfolio and these two hotels are a large contributor to the upscale portfolio. So as we get the better penetration and usage of these two large ballrooms into big hotels, what we expect to do is see a higher-growth in FMD income on a year-on-year basis, which means that if my RevPARs are growing at 20%, I expect my revenues to not grow at just 15%, but 16% 17%, 18%.
As I mentioned, I always expect total revenue to remain short of RevPAR growth in-markets like India because the room demand is really, really strong. But the 5 percentage point dilutive effect that we saw last quarter, we should narrow it down to maybe 2.5 percentage points really.
Vaibhav B. Muley
Understood. And just one last bit on the brand upgradation. So can you expect the delta in terms of percentage ARR improvement that you expect for conversion to co-tyard, fair fill and tribute maybe for all three respective categories?
Ashish Jakhanwala
Yeah. So I think our big opportunity is right now in four points to court yard and four points to tribute. In four points, Pune to, our expectation and we have said it earlier is about 20% 25% our total revenue growth. In Jaipur actually because the asset is grossly underperforming. And there it’s a combination of both really bad product and also, you know, the brand that we’re trying to bring in stronger. There we expect the total revenue and RevPAR growth to be upwards of 30% change. So we see this sort of change in both the markets.
And this is these markets, I think — sorry, I would like to take your attention to the data on airline growth. And if you see markets like Hyderabad, Bangalore have grown between 12% to 16.5% year-on-year change in passenger traffic and that’s a good indicator for what’s happening to hotel rooms also in these markets.
Operator
Thank you., I’ll request to come back for a follow-up question, please. Next question is from the line of Bharat from Quest Investment Advisors. Please go-ahead.
Bharat Sheth
Hi, sir. Thanks for the opportunity and congratulations, and team. As you alluded, hello, am I audible?
Ashish Jakhanwala
Yeah. We can hear you loud and clear.
Bharat Sheth
Yeah. See, as you alluded that for the company growth will not be in-line with the RevPAR because of lower-growth in F&B. But in that case, how do we think about the impact on the EBITDA margin really can play-out? If you can give some color room, I mean, our EBITDA margin for the — our room as well as F&B and then overall impact?.
Ashish Jakhanwala
So, fantastic question. And let me tell you, whenever you see a total revenue growth driven by room revenue, you do expect the margins to expand significantly, right, because tends to produce higher contribution margin as compared to rooms. As compared to food and, sorry. Rooms produce higher contribution margin as compared to food and is my apologies. If you see overall margin profile, if you look at quarter-four, which is released slide number 18, you would realize that our asset-level EBITDA had reached about 43% for the quarter after accounting for net corporate G&A at about 40.5%. We expect this to be a trend we should see on an annualized basis or going-forward.
So our expectation and endeavor is that not just for quarter-four, which we all know and accept is a strong quarter, we should see this margin profile remain applicable for all of Sami for the full-year periods. And we do expect to get there, I would think in the next four to six quarters so that the whole company is reporting these sorts of margins, not just for a quarter, but for the whole year.
Bharat Sheth
And what kind of a margin we should look for SMB?
Ashish Jakhanwala
So,, if you look at Uniform system of hotel accounting, which is the only way to articulate departmental profit, in a USHA format, you would see rooms division producing about 60-odd percent contribution margin and F&B would be 40% 40 — between 40%, 45%, right? But the big gap there is that HLP is accounted for below. So unfortunately, it’s not a true reflection of the margins because we all know food and is energy. So accounting for utilities expenses which are the uniform system of hotel accounting are actually below departmental profit, we would think the F&B margins are not more than 35% really.
So there is a big gap between what margins rooms can produce and more so in a high-capacity utilization, higher-rate environment related to what food and beverage can produce. So we love the fact that our business is driven by very predictable, sustainable repeatable rooms business. We just want to make sure that any drag which F&B brings to RevPAR to total revenue can minimize that drag in the times to come.
Operator
Thank you. Bharat, I’ll request to come back for a follow-up question. A current request to all the participants kindly restrict to two questions per participant. Next question is from the line of Pranav from Pinc Wealth Advisory. Please go-ahead.
Pranav Shrimal
Yeah, hi. I hope I’m audible.
Ashish Jakhanwala
Yes, you are.
Pranav Shrimal
Yeah, congrats on the numbers, sir. Just a couple of questions from my side. Sir, firstly, are we still seeing any supply-demand mismatch going-forward. In our main areas Bangmore and Hyderabad,
Ashish Jakhanwala
So Bangalore, Hyderabad, Pune, NCR, which are four markets where probably we get 75% of our total revenues, right? We’re seeing negligible — so Bangalore is still seeing some Some supply, but thankfully, the market size is so large that on a relative basis, the supply growth is just about 4%, 4.5%, 5% against airline growth of 11.5%, 12%, office growth of about 8%, 9%. So we are seeing demand remain 2x of supply growth in Bangalore. In Hyderabad, Pune and NCR, we actually just are not able to see any supply. So we actually expect Hyderabad to grow fairly rapidly. Interestingly, for the same segment of hotel, Hyderabad is still selling rooms at a reasonable discount to Bangalore. And it is our expectation that over the next few quarters, we would see that gap narrow down if not be completely the same actually rates for the same set of hotels. So we are not seeing any reasons to worry about supply set. And, the good thing about the sector is that because supply need a hard asset to be build, it’s not something that will be surprised by next year, you know. So we think we have a clear runway over the next at least three years before we start worrying about supply having any meaningful impact. But I would caution you, my optimism is extremely myopic about the markets we are present in and the markets that we are investing our capital in. It should not be applied to all markets and all cities. Some of the Tier-2, Tier-3, we may see some higher supply growth relative to the Tier-1 market. But your answer — your question was about our market, we remain fairly upbeat about what we are seeing on-demand and supply.
Pranav Shrimal
And coming to and, and our PPTs have said that complete by this FY. Is there any quarter target that we have set to be open by Q2 and the
Ashish Jakhanwala
Quarter three is when we expect this inventory to be operational for both these hotels.
Pranav Shrimal
So we can sort of estimate that H2, these two inventory will be contributing.
Ashish Jakhanwala
Yeah, it will be.
Pranav Shrimal
Got it. Got it, sir. And that’s it from my side, sir. Thank you so much and best of luck.
Ashish Jakhanwala
Thank you so much.
Operator
Thank you. Next question is from the line of Nirvana Laha from Holdings. Please go-ahead.
Nirvana Laha
Hi, thanks so much for the opportunity. I have two questions. The first question is, if I look at the H2 revenue growth for the company and ACIC has been in the base, it’s been about 12%. So going-forward for FY ’26, do you think that’s a fair rate of growth that we can look-forward to? And also if you can give the ACIC revenue and EBITDA for FY ’25 and FY ’24?
Ashish Jakhanwala
Okay. So in terms of total revenue growth, one of — I think we’ve always maintained that for same-store hotels. And I think we’d like to repeat ourselves several times that when we look at KPIs and revenue growth, it’s important to look at the same set of hotels because the moment you add new openings, it just confuses a trend, right? So for those same set of hotels, we expect the total revenue growth to remain in the early double-digits, right? We’ve been saying it for the last several quarters, but market has been supporting a higher-growth, but we maintain — we maintain that for a sustainable long-term growth for same set of hotels should be a total revenue growth of early double-digit revenue, right?
In terms of actual absolute, you would see about INR190 crores revenue from ACIC for both years. Actually, 2024 was INR192.2 crores, 2025 is INR190 crores as well. So this is what all the five hotels put together.
Nirvana Laha
And in terms of EBITDA, please for the two years?
Ashish Jakhanwala
So EBITDA was INR66.8 crores in FY ’24, it is INR74.2 crores now.
Nirvana Laha
Okay, okay. And coming to a question on — so I think in the press release, I’m forgetting which document, I think you have indicated that interest cost your projection is INR140 crores for next year. And then there are some non-interest finance costs, et-cetera, which I think this year was close to INR30 crores, you can confirm that. So I’m just trying to understand next year as we grow in early double-digit and the EBITDA grows a little bit more. And the CFO that we generate next year, after finance cost and capex, you indicated INR125 crores of capex, I think from. So do you expect some cash to go towards further deleveraging? My math is telling me you might have about INR100 crores organic cash for further deleveraging. So if you can comment a little on this?
Ashish Jakhanwala
So you’re absolutely right. I mean, even if you just look at and we hate doing a point forecasting for the future. But even if you look at FY ’25 numbers and what a drop pro-forma for the current year, you would see that against the INR443 crores of cash EBITDA pre-ESOP, we would have a cash interest expense of about INR145 crores, so INR143 crores. So you would see about INR298 crores free-cash before CapEx, right, before CapEx. Now for the next year, if you were to apply, let’s say, a 15% growth on EBITDA backed by, let’s say, 10%, 11% growth in total revenue, you would expect the EBITDA to expand by about INR60 odd crores and all of that is a straight flow-through to your free-cash.
So you would expect about, let’s say, INR360 odd crores of free-cash. And our current estimate is that we’ll need about INR125 crores to INR150 crores for growth capital expenditure and about additional INR20 crores for maintenance capital expenditure. And the rest is the free-cash available, which is obviously available for either growth or deleveraging.
Operator
Thank you. Laron, I’ll request to come back for a follow-up question. Next question is from the line of Rajav Malik from Jefferies India. Please go-ahead.
Raghav Malik
Yeah, hi. Thank you for the opportunity and congrats on a good set of numbers. My first question is a follow-up to one of the previous questions. So the GIC co-investment on four points you mentioned, the four points conversion you mentioned is INR50 crores, but the other conversions that are happening and integrations into portfolio, W and Western, what would the GIC co-investment be the amount that you could quantify?
Ashish Jakhanwala
So Rajhar, just to clarify, when you look at our total capital expenditure growth plan, the largest bit in that today is the Western and Tribute Bangalore, where we have INR375 crores of pending capex over the next three years. Of that INR375 crores pending capex, GIC will first bring INR150 crores to get to a 35% position. And the subsequent incremental will be funded by both partners in a, 65 35, but we need to remember that the three subsidiaries that are part of the joint-venture today have a trailing EBITDA of about INR140 crores and a net-debt of about INR150 crore INR160 crores.
So we do expect a lot of free-cash to come through those subsidiaries and our expectation is that, that itself will fund reasonable amount of capital expenditure required to build-out the best-in attribute. For the other assets which are outside of the joint-venture, let’s say the W in Hyderabad, the conversion of the four points to a 4 yard or four points to attribute, which are the big capital expenditure items, that is going to be done from the free-cash that we are generating in our business.
Raghav Malik
Okay. So for that GIC will not be contributing. Okay. Okay, thank you. And the other question that I had was for me, what would the revenue or RevPAR impact kind of a bin because of any cancellations or rescheduling that we may have seen only.
Ashish Jakhanwala
Yeah. So we saw April being very strong and May because of that one-week of escalations, we did 2%. We are for the month maintaining a reasonably — we’re still maintaining a reasonable — small growth over last year, but for the quarter, we maintain a reasonable growth actually. So because of a very strong April, we are maintaining a reasonable growth in the current quarter, but for the month, it is so-far kind of flattish because of what happened for those two, three weeks really, you know.
Raghav Malik
So this is revenue growth, right?
Ashish Jakhanwala
Total revenue growth. Yeah, yeah.
Raghav Malik
Okay. Thank you. Thank you and good luck.
Operator
Thank you very much. Ladies and gentlemen, we’ll take that as the last question. I’ll now hand the conference over to Mr Ashish for closing comments thank you so much.
Ashish Jakhanwala
I’d like to thank you all for your time and of course to our shareholders for their support. I think we are very proud of the fact that SAMI has in just 14 years created an industry-leading platform and we believe we are now ready to pivot the business towards its next phase of growth and value-creation and we look-forward to continuing to talk to you and end-up achieving that endeavor. Thank you so much and talk to you soon thank you very much.
Operator
On behalf of Sami Hotels Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you