Thank you. Good morning, everyone, and welcome to SAMHI Hotels' Q4 and full year financial year 2026 earnings call.

Thank you for taking out the time to join us today. I am joined by our CFO, Rajat Mehra, EVP and Head of Investments, Gyana Das, and Nakul, our SVP of Investments.

Our investor relations partners, Strategic Growth Advisors, are also on the call. We have uploaded our Q4 FY '26 financial results and investor presentation on the exchanges and on our website, and I hope everyone's had a chance to go through them.

FY 2026 was a year of tangible performance in the midst of real headwinds, and I'm pleased to share our progress with you. I would like to start by informing you that the company delivered a profit before tax of circa 165 crores, which was 89% growth over last year.

This was before any one-time or exceptional items and actually demonstrates how far we have come since we went public. At the start of FY '26, we set two specific commitments to our shareholders: (a) deliver revenue growth in the range of 9% to 11%, and (2) bring the balance sheet to a net debt-to-EBITDA of approximately 3 times.

Despite revenue disruptions and active for future growth, we have delivered on both, as revenue growth came in at 12.3% for the year, anchored to commercial demand in our core markets, total income grew to 1,279 crores, and we ended the year with a net debt at 1,450 crores, translating to a net debt-to-EBITDA of about 3 times. What makes these outcomes meaningful is the operating environment they were delivered in.

FY '26 absorbed a sequence of disruptions that bracketed almost every quarter: the India-Pakistan conflict in May, an unusually severe monsoons and flooding in our core markets in August, the airline disruptions in December, and the Middle East conflict in March, which continues. These one-time events compressed our full-year revenue by approximately 45 to 52 crores, leading to revenue growth being diluted from a potential of 16% to 17% to an actual reported number of 12.3%.

FY '26 was also the year we set up the next decade of SAMHI's growth. We formally launched our GIC platform for upscale hotels in India, with committing approximately 750 crores for a 35% minority stake in a 1,000-room platform.

Of this, 600 crores has already been received, with the balance to come over the next 2-odd years to fund CapEx for the Westin Tribute Bengaluru development. We signed a partnership with Ingka Centres, which is a part of the IKEA Group, for a 162-room upscale hotel at Sector 51, Noida, structured as a long-term variable lease.

It's a landmark addition that strengthens our presence in Delhi NCR through a capital-efficient model. We also secured a lease in a marquee under-development project in Hyderabad, named One Financial District, for a 260-room hotel, which will redefine the precinct through a combination of lifestyle, retail, office, and hotel.

We could also resolve the Navi Mumbai litigation and announce the development of our largest hotel project to date: a 700-room combination of Westin and Fairfield by Marriott, with the potential revenue of almost 325 crores on current market RevPARs. We have yesterday sought approval from our board to add a room Marriott Hotel in Sriperumbudur, where we already have an operating Fairfield by Marriott, and has achieved an asset-level ROCE of more than 30%.

This year, we also entered the experiential leisure segment through an acquisition of a 70% stake in RARE India, which is a curated platform of 73 hotels and 1,000 rooms. This is under discussion for an affiliation with Autograph Collection by Marriott Bonvoy.

I'll now pass over the mic to Rajat, who will take you through the detailed financial performance. Over to you, Rajat.

Thank you, Ashish. Good morning, everybody.

Starting with our full year FY '26 results, the total income stood at 1,279 crores, with a same-store RevPAR growth of 9.5%, in line with our long-term guidance of 9% to 11%. The four core markets—Bengaluru, Hyderabad, Pune, and Delhi NCR—contributed approximately 76% of the asset income, in line with our office absorption concentration.

Consolidated EBITDA for FY '26 was 463 crores, up 8.8% on a year-on-year reported basis, with EBITDA margins at 36.2%. Adjusted for the impact on account of the GST changes, this would have been circa a 13% year-on-year growth.

For the fourth quarter, the total income was approximately 354 crores, a year-on-year growth of 9.3%, with a same-store revenue growth of 6.4%. The quarter held a revenue growth trajectory of approximately 12% through the end of February before the Middle East disturbance reduced the March revenue to sub-minus 1%, thus diluting the full quarter revenue growth.

Consolidated EBITDA for Q4 was approximately 120 crores. While this was 6% below the same quarter last year, it was largely on account of expanded GST impact, as more rooms were sold for less than ₹7,500, some FF&E expense through the P&L, and the pre-opening expenses for the new inventory.

The impact of the Gulf crisis is added to these factors. For the full year, the key developments which impacted our performance includes: first, the GST regulatory change moving the hotel slab from 12% with input credit to 5% without the input tax credit, which impacted the H2 FY '26 consolidated EBITDA by approximately 14 crores; second, approximately 5 crores was funded for the FF&E product upgrade, the year-end reconciliation, some actuarial valuation which is done at the end of the year, which are all routed through the P&L; third, a four one-time disturbance that Ashish mentioned earlier, starting with the India-Pakistan conflict in May and ending with the Middle East conflict, which is still continuing.

Adjusted for these items, FY '26 EBITDA growth would have come in line of 19% to 20%, with margins of 38% plus. Q4 FY '26 consolidated EBITDA would have been approximately 149 crores, representing a year-on-year growth of approximately 16.8%, in line with the trajectory we have held before the disturbance.

Moving below the EBITDA, depreciation and amortization for FY '26 was 127 crores versus 116 crores in FY '26. Finance cost for the year was 171 crores, sharply down from 225 crores in FY '25, reflecting the impact of the GIC capital infusion starting in June '25 and consequent deleveraging and the reduction in the cost of borrowing.

PBT before exceptional items almost doubled to 165 crores for the year, up from about 87 crores in FY '25. We also booked deferred tax income of approximately 300 crores, recognized in the fourth quarter on account of formal recognition of brought-forward losses and unabsorbed depreciation that we have recognized in our balance sheet as a deferred tax asset, reflecting management's increased confidence in the continuous utilization of the shield.

This is a non-cash, accounting-driven income line. FY '26 reported PAT included the Q4 deferred tax recognition, the Navi Mumbai and other impairment reversal of close to about 83 crores, and a gain on sale of discontinued operations in Caspia Delhi was approximately 567 crores.

On the balance sheet, the net debt as on 31st of March 2026 stood at 1,450 crores, a reduction of approximately 516 crores from 1,967 crores as of March 31st, 2025, primarily reflecting the GIC infusion deployed for deleveraging. The net debt-to-EBITDA at the end of the year is approximately 3.

3x. The equities stood at approximately 2,286 crores at the year-end versus 1,142 crores at the end of FY '25.

The effective interest rate for the group is now 7.9% as on May 21st, 2026, and an annualized interest cost run rate has actually come down to about 130 to 135 crores. Our credit rating has been upgraded to A+ Stable by both CARE and ICRA during the year.

The combination of consistent same-store revenue growth, further levers for improved margins, decline in finance cost, and fully capitalized growth pipeline gave us a free cash flow generation of approximately 300 crores in FY '26, net of both interest and LG minimum guarantee payments. This is the number that we underwrite for the next phase, and Ashish will speak on how this will compound.

With this, I now request Ashish to take you through the growth projects and concluding statements. Over to you, Ashish.

Thanks, Rajat. FY '26 was a year that SAMHI's free cash flow generation became real, and FY '27 onwards is the year that free cash compounds.

Let me lay this out for you. Our FY '26 free cash flow of approximately 300 crores became approximately 315 on a run-rate basis once the additional interest savings we have secured is factored in.

Over a 5-year horizon from FY '27, which is the current fiscal, to FY '31, that base alone, held flat, produces approximately 1,550 crores of free cash. Layering on the same-store revenue growth even at the lower end of our 9% to 11% range adds approximately an additional 1,000 crores of incremental free cash over the 5-year period.

On top of this, we have a fully committed pipeline of new openings, beginning with HITEC City, Hyderabad, at the end of FY '27, The Tribute Portfolio at Bengaluru Whitefield at the end of FY '28, the Westin at Bengaluru Whitefield, the upscale hotel at Ingka Noida, and the new Marriott Sriperumbudur, Chennai, in FY '29, FY '30, together adding the increment that takes the cumulative free cash post-interest over the FY '27 to '31 window to more than 3,000 crores. Our future free cash flow is further complemented by demonstrated capital recycling track record.

Over the past 3 years, SAMHI has recycled approximately 960 crores of capital: 210 crores realized by monetizing four non-core hotels at an average 20 times EV-to-EBITDA and approximately 750 crores through the GIC capital infusion into subsidiary platform. Of this, approximately 650 crores was deployed to reduce debt and the balance funding accretive new acquisitions.

Therefore, capital recycling is an established part of our playbook and not an opportunistic tool. We have identified further candidates within the portfolio, and we will execute selectively to maximize return on capital employed, accelerate our deleveraging, and fund growth.

Going forward, the 3,000 crores plus of cumulative free cash over the FY '27 to FY '31, coupled with our established capital recycling program, is allocated against a structured framework: first, continued deleveraging towards a medium to long-term net debt-to-EBITDA target of approximately 2.5 times; second, the commitment to fully fund the 2,200 crores of CapEx across the existing pipeline, including Navi Mumbai; third, retain investable surplus for tactical mergers and acquisitions and adding long-term variable leases where returns are very accretive; and fourth, as free cash flow compounds beyond our committed growth requirements, the board intends to evaluate disciplined mechanism to return capital directly to shareholders in a manner consistent with long-term value creation. Looking ahead, FY '27 builds on the FY '26 base.

We are confident of delivering a 9% to 11% same-store revenue growth, with healthy margin expansion on top of the ongoing contribution of the assets that opened during FY 2026, the GST impact being normalized from Quarter 3 FY '27 as the year-ago basis resets, we're also confident of contributions coming from W Hyderabad in the near term. With the GIC platform giving us institutional capital firepower, the Ingka partnership giving us a marquee Delhi NCR addition on variable lease, the RARE India platform giving us capital-efficient entry into a rapidly expanding experiential leisure segment, SAMHI is now positioned to compound free cash, expand the portfolio in core markets, transform the P&L through multiple big-block assets in our pipeline, without taking incremental leverage and without diluting equity.

Thank you for your time today, and we'll now open the floor for questions.

Hi. Thanks for the opportunity.

First thing, Ashish, can you provide some color on how April and May have trended so far and how is 1Q FY '27 looking so far in terms of booking and MICE activities? As a follow-up, given you had the benefit of a favorable base in FY '26, how should we think about the like-for-like growth expectations for FY '27?

Karan, cumulative QTD, quarter-till-date, is tracking double-digit revenue growth. Bear in mind, April was flattish, May is strong.

That kind of answers your second part, that we also inherited a very weak base in May of last year. I think, given the fact that we almost lost a quarter last year, 1 month every quarter because of some issue, we think that even though the Gulf crisis will continue to impact absolute numbers through the first quarter, the year-on-year growth will easily be maintained in double digits, Karan.

Sure. Just on the GST impact, it seems like GST is more like a permanent reduction in margins since the rules are unlikely to change.

In light of this, what margins are you expecting in FY '27, '28? How would those margins look like prior to the GST implication?

Karan, the margins we expect to be around 38% or so. There is an impact of GST for sure, which is permanent in terms of absolute basis.

Even then, we should maintain a 38% margin through the year. Don't forget, a lot of our pipeline is all upscale, where we don't have many rooms selling for less than ₹7,500.

We should maintain a 38% plus margins at a group level.

Sure. Then secondly, if I look at slide 32, given the kind of pipeline that you have in FY '27 and beyond, is there a spillover risk in terms of construction delay in any of these projects in pipeline?

Given that you've had four major hotel development announcements during the year, for FY '27, should we continue to see more acquisition or capacity expansion announcements, as well as the asset recycling trend continuing? Or will the focus now be towards stabilizing the existing pipeline first before pushing the accelerator towards growth?

Karan, I think you know SAMHI for a while. We are a very well-set management team with specific responsibilities to each group.

We have a very strong operating team, largely led by our operating partners. They will focus on ensuring that we deliver on the same-store or the operating assets without being distracted by what's being happening on the M&A space.

That's one that I think, at all times, we have separated our operating teams from our growth teams. The second question about acquisition versus capital recycling, I just stated that, is something that will continue to look at.

We have identified few more candidates within our portfolio which we think where we can extract our capital from. As we extract capital from those assets, we constantly look to redeploying them so that the return ratios can be improved for the company and for our shareholders.

Acquisitions are always opportunistic, Karan. We want to maintain discipline of discount to replacement cost.

We want to maintain the discipline of underwriting mid-teen ROCEs. We want to maintain the discipline of not investing in long-lead greenfield assets.

We have some because of adding inventory and so on and so forth. We have very strong guardrails.

Capital recycling is something that will continue to evaluate through the year and next year, including also redeploying that capital for more interesting opportunities.

Great. I'll come back in the queue for follow-ups, Ashish.

Thanks a lot.

Hi, Ashish and team. Congratulations on excellent results and on the deleveraging.

A very quick question. Given the new projects coming up this year, what is likely to be the revenue growth as a percentage for FY '27?

Viraj, sorry, the line is cracking a little bit. Hello?

I think the question was about what's the revenue growth we expect with the new openings. I think let's break it up year by year.

What do we have in for FY '27? FY '27, first of all, we have the same store of hotels.

This portfolio grew in the zip code of about 6% to 7% last year, with a lot of interruptions. Without that, this would have grown comfortably in the zip code of 10%, 11%.

Given the base has been reset, as Karan mentioned on the earlier question, we expect the same-store hotels to comfortably grow in the zip code of about 9% to 10% year-on-year for FY '27. (2) We had undertaken a fair bit of renovation and additions during FY '26.

Just to mention a few, we had added inventory, almost 20% inventory, to our Sheraton Hyderabad. We have added inventory to our Hyatt Regency Pune.

We have added inventory to one of our Holiday Inn Express hotels. We obviously opened two more Holiday Inn Express hotels during the year.

We also undertook significant work in our Hyatt Place Gurgaon, where a significant inventory was shut for renovation, has reopened, there's a new ballroom, and so on and so forth. We do expect that the capital and the efforts get invested in FY '26 in these assets will add on to the same store for FY '27.

If not, they give us enough cushion and hedge if the current crisis was to continue longer. Therefore, being conservative, we feel that while if there was to be no crisis, same store would have grown at about 9% to 10% and incremental impact would have been about 3% to 4%, total revenue growth would be about 14-odd percent.

I think at this point, we'll like to guide with an element of caution that the current crisis may continue, and therefore the overall revenue growth should be underwritten in the zip code of about 10% to 11% YoY. That's we expect FY '27.

FY '28 is a big year for us because we open the W in Hyderabad. Notwithstanding what we are seeing as a current crisis, the location of that hotel, the brand, and the product positioning is extremely strong.

We do expect the W Hyderabad to bring, on the current revenue run-rate basis, almost 6% or 7% growth. For FY '28, we're extremely well-set to add that 6%, 7% YoY growth because of that new hotel opening.

Then beyond that, of course, we have larger openings like the Tribute in Bangalore, then the Westin in Bangalore, then the Noida development. I think starting FY '27, we are in a very secure space because of the investments that we have made since we went public.

Understood. Thank you.

Ashish, would you like to guide us towards the interest cost outgo likely for FY '27?

FY '27

Viraj, you'll have to mute your line.

For FY '27, on a pure Excel sheet, the interest expense comes to about 127 crores. We would again caution, the news that we're hearing in the market is that the interest rate cycle may see a upward revision because of the currency weakness.

We have already factored in a 25 bps of increase to indicate a total interest cost in the range of about 135-odd crores. We have factored in what we expect could be the interest rate hardening this year.

Otherwise, as of today, the cash interest expense will be about 127 crores, but we are guiding towards 135, 140 only because of the fact that we will factor in a 20 15 to 20 bps increase in the interest rate.

Understood. Thank you.

I'll come back for more questions.

Thanks for the opportunity. Sir, I was just trying to adjust the EBITDA margin for Q4 for the crisis.

If I have a look at our reported EBITDA, which includes other income, the figures stated is about 149 crores. If I exclude other income of about 8 to 9 crores to the reported EBITDA and add about 22 crores of revenue loss that we have seen in the month of March, our EBITDA margin is at about 38.4%, which in the base quarter was about 38.7%.

While the decline is not meaningful, but we haven't seen any improvement come through in the EBITDA margins. Are we kind of facing any operational headwinds on the cost side, if you can talk a bit about that?

Also, in that context, our full-year guidance of 38%, because 3Q and 4Q margins typically tend to be higher. If in 1Q and 2Q we are slightly lower, how should we think about that guidance as well?

Jinesh, very good question. Let me break it up for you, actually.

When you do the math in terms of adjusting for other income and then adding back the impact of, let's say, GST and the whole crisis that you've seen, you're absolutely right, it's flattish margin. When you drill down our asset-level performance this year, one of our large assets had picked up almost 13 crores to 14 crores of what is called corporate catering and outdoor catering.

That one business came at very low margin. Okay?

That kind of impacted a bit of what would have been slight increment in the margin to what you've delivered. As we rationalize the revenue mix through FY '27, that dilutive impact of a not a very large, but still a reasonably sized business that was picked this year, which reported very low margin, will disappear starting May.

I think there was one asset, one particular contract slight dilutive impact, which we will not see through FY '27.

Understood. Sir, one accounting question.

The variable lease hotels that we have announced in Hyderabad and Noida, now given these are long-term leases, will the rent get capitalized on the balance sheet, or will it be expensed into the P&L? That is one.

Just one small follow-up. While in the PPT, we have given a 5-year CapEx guidance of 2,200 crores, can you just help us break it down for the next 2 years, which is '27 and '28?

Yeah. That is the last question from my side.

Yeah. Jinesh, hi.

This is Rajat here. See, as far as the lease which are paid till the time the development of the hotel is happening, all leases will get capitalized.

Whatever we are paying for the W today on a regular basis is getting capitalized till the time we open the hotel. After that, it will be expensed to the P&L as soon as the hotel starts generating revenue.

Yeah. Just to reconfirm, all leases have a 3 to 5-year minimum guarantee.

For that, we will actually create a separate ROU and a lease liability, which has a separate accounting treatment.

Even today, Jinesh, about almost 1.5% to 2% of our revenue is on account of the variable lease payments we make on our existing leasehold assets. When you compare the EBITDA margins like-to-like, actually our EBITDA would be in the zip code higher by about 150 to 170 basis points only on account of the lease treatment.

Coming to your second question, for FY '27, we have allocated about 250 to 270 crores of CapEx. Large part of this is actually towards the W in Hyderabad, almost 150 crores is for W Hyderabad for it to be opening towards the end of the year.

The balance is for the work going on in the Westin Bangalore. Then we're allocating some capital towards maintenance, and we've seen that on the P&L there is some maintenance requirement.

Then we are doing minor renovations in Four Points Pune and Jaipur, we've allocated about 15 to 20 crores there, and then some bit of investment in leisure. For FY '28, we expect to maintain a similar zip code of CapEx, majority of that will be directed towards the Westin in Bangalore because W would have been largely fully invested so far.

That's how we see the CapEx plan for the next 2 years: zip code of 250 to 270 crores per year run rate as of today.

Can I ask just one more question? A small clarification.

Sir, in the presentation, we have mentioned that due to the GST change, the number of room nights sold for less than 7,500 have increased quite a bit. If I look at the occupancy of the upper midscale and midscale assets that we have given in the PPT, that figure is more or less constant.

I was just trying to think through what has happened exactly.

The funny part about the GST regulation is it has nothing to do with segment. It has nothing to do with the average rate of a hotel also.

It is applied to each room which is sold for less than ₹7,500. Even in a hotel where we have reported an average rate of ₹9,000, if during the month of March, because of the Gulf crisis, they saw cancellation of a group or an event, and they replaced it by another group which came at a rate lower than 7,500,

on that proportionate income,

we would have lost the GST input tax credit. This will not be visible from segment performance.

Actually, even if you look at our best-performing hotel, like a Courtyard Fairfield Bangalore, in the month of March, they would have ended up selling a few rooms, let's say, less than ₹7,500, right? The impact is of every room which is sold for less than 7,500.

As the revenue management logic would unfortunately tell you that when you go through a period of crisis, you tend to secure market share and volumes, and some of that comes at a slightly discounted price than you would have otherwise planned for. That's why if you see in the last 6 months, the total GST impact on a YoY basis in Quarter 3 was about 8 7.5 crores, actually,

right?

The same amount expanded to about 10 crores in Quarter 4. Even then, that's not proportionate to the revenue growth we've seen Q-on-Q, actually, right?

That demonstrates that more rooms were sold at less than ₹7,500. That's standard revenue management.

Thank you, sir, and all the best.

Thank you so much, Jinesh.

Hi. Good morning, all, and thank you for the opportunity.

Ashish, my first question is regarding this 130 153 million impact because of the West Asia disruption. In our presentation, we have written that inbound FIT cancellation, airline crews, and MICE.

Is there any residual impact also which is going into April and May? Or this is just purely a one-off, and we may not see this recurring in Q1?

Vikas, we have seen that continue through April. May started seeing a solid recovery.

May, two things that are happening, to be honest. One is last year base was very poor, Vikas, because we had Operation Sindhu in May.

Operation Sindhu started around 9th of May or 1st of May. Clearly, you inherited a very extremely poor base.

Even if I ignore it, constantly tracking this current quarter over the same quarter in FY '25, actually.

Okay? Because

comparing it to FY '26 is kind of blindsiding yourself for future. Whatever we delivered in FY '26 is, while for a management, it's very easy to use that as a base to look like heroes in FY '27, but it clearly doesn't set them for success in the long term, right?

When we look at Quarter 1 performance, we are actually comparing it to the Quarter 1 of FY '25, because that didn't have an incident like Operation Sindhu, which was actually as severe an incident as what we are seeing currently, right? Adjusting for all of that, what we've realized is that even long-haul international travel has resumed.

Okay?

Even the customers from US have started flying. Don't forget, the flying time is now increased to 20 hours.

It clearly impacts the number of people who'd like to come for a small meeting. We have clearly seen a very encouraging resumption of business from all core markets.

The occupancies are not a problem. We're running really strong capacity utilization across the group.

As the business rebalances will give us the conviction to restart repricing. I think as of today, that's why we feel reasonably confident.

Listen, the operators give you a calendar year number. We report a fiscal year number.

In a typical year, the ratio of fiscal year to calendar year is about 1.04, 1.05, right? About 4% ahead of the calendar year is the fiscal year ending.

Last year, that dropped to about just barely 2%, it was 1.02.

Okay?

If I take the numbers that have been delivered from Jan till now, which is a very period full of turmoil, to be honest with you, we actually think that the early double-digit growth rates are fairly secure. When I say fairly secure, to be very vigilant and keep monitoring what's happening to the current situation.

As of today, we feel that double-digit revenue growth is not something that is at an alarming threat, but the world is volatile. We need to keep watching where we are headed.

That's helpful. Roughly we should build in a similar kind of a impact that the one around 150 million for maybe Q1 as well, which will hit the margin.

As you rightly said, FY '25 is the base we should look at. I just want to clarify on that.

If I look at the GST impact, which was largely for the second half, 180 million, if I annualize it, it would be roughly 300 million for the year. If I compare it with FY '25 base, there is a 2.5%, 3% drag.

When we say 38%, which is 50 to 70 basis point higher than FY '28, roughly, if I exclude that, our margin would have improved more than three 3 percentage points. Is that the right understanding?

Absolutely correct. The group level would have been upwards of 40% minus the GST impact.

Our upscale is already upwards of 42%, 43%. Our ACIC has now moved in line, 41%, 42%, actually.

Our Holiday Inn Express portfolio has done really well. You're absolutely right.

GST has a permanent impact on the margins, and that's why for this year, we're guiding to be 38%. The good news, Vikas, each year our reported margins will keep going up on a normalized basis because most of our incremental inventory is upscale, where we don't expect to sell many rooms for less than ₹7,500, right?

I think structurally the company will secure its place at 40% plus reported margin only because of the fact that our incremental investments and openings are all upscale, actually. In strong markets.

Let me be cautious. An upscale in Ahmedabad has a risk of selling rooms at less than ₹7,500.

A midscale in Hyderabad and Bangalore has lesser risk of being sold at that price. Our inventory is opening in upscale and in markets like Bangalore and Hyderabad, which gives us a reasonable security about not selling rooms below that price point.

Right. Ashish, is it fair to understand, once things normalize, there would be some upward bias on this 9% to 11%, the target we have on income as well, because of the GST reduction?

There should be some upward bias there. Finally, anything on this NCR, where RevPAR declined minus 9%?

Is the renovation of Hyatt Place largely over, and we should start seeing RevPAR growth coming back from this fiscal year? Thank you.

That's my last question, and thanks a lot.

Vikas, absolutely. Hyatt Place Gurgaon renovation got concluded actually by end of Quarter 3, right?

If you see Jan till now, we've seen fabulous growth in that asset. We do expect NCR to come back to mid-teens in the current fiscal year.

There's no doubt in our minds about that because the base was very low. Notwithstanding what we are seeing as crisis, we're not worried about some of the assets where we've taken interventions, because the base was doubly impacted: (a) because of the renovations, and (b) because when they opened, the markets was really, really bad.

You no need to be concerned about NCR. Hyatt Place Gurgaon is now fully renovated and open, and it's set to deliver, at least in our opinion, mid-teen revenue growth, if not more.

Ashish, we missed on that 9% to 11%, if there is any upward bias towards that because of the GST reduction.

Listen, just look at the last year number, Vikas. Last year, the total revenue growth in the portfolio was about 12%.

Okay? If I look both at the external environment and internal issues, such as renovation at Hyatt Place and ballrooms in Hyatt Regency and Sheraton, and we've spoken about this in the first half, unfortunately, we all forget in public markets, but this year we had undertaken certain capital investments for product improvement, which did impact our revenue run rates, right?

FY '26 should have easily been a 15%, 16% revenue growth for SAMHI. Okay?

If we see the Gulf crisis settle down, even if it takes another 3 months to settle down, right, I think this year has a fair bit of an upside potential. That's the potential, right?

Our current plan on EBITDA growth, cash flow generation, our targeted leverage, all of that is dependent on just that 9% to 11% revenue growth. Anything we get on top of that will do couple of things.

Number one, it will substantially improve our EBITDA growth plus margins. Two, all of that incremental EBITDA will go straight to our free cash, and that, of course, has a snowball effect of what that can do to the company.

That's why every management, just like every equity investor, tends to be cautious about the downside, but clearly works hard for the upside. That's why we have articulated our capital allocation plan, because we do feel, over the next 3 to 4 years, there's a lot more upside built into our business that allows us to do all the four things, which is quickly deleverage, clearly continue our CapEx plan, which is not being impacted by anything, continue to look for growth opportunities, and last but not the least, have the optionality—and I don't want to speak ahead of time—have the optionality to start considering any sort of a shareholder return.

I think there is an upside in the business plan, but we need to be very cautious, especially in times when bombs are flying around the world, really.

Thank you, Ashish.

Hi. Thank you for the opportunity.

I have two questions. One is, if I look at slide 28, the income bridge that we share, the same-store EBITDA shows a negative impact, even if I look at the ex-GST number.

In this, is this drag largely because of that one asset where the margins were structurally lower? If yes, can you quantify that for us?

Then second, our understanding is that the incremental flow-through from incremental revenues is about 50-odd percent, right? That's generally the case for us.

Given the GST impact, how should we think about this going forward? That's my question.

Srijana, yeah. Thank you.

Good question. When you look at slide 28 and the Quarter 4 FY '26 same-store, you're absolutely right where the GST has been separated from this.

It does include what Rajat mentioned about the FF&E expense as some of the year-end reconciliation and, two, of course, the impact of the outdoor catering and group corporate catering business taken at Hyatt Regency Pune. Both of those things impacted the revenue growth.

One thing you need to be aware of, Shrinjana, is that typically we see a very significant jump between Quarter 3 and Quarter 4 revenues historically. Most of them coming actually post 20th January till end of March.

We've always seen the first 10, 15 days of January mirroring the last 20 days of December, which is a year-end vacation period. Post 20th January, we see a very strong growth in revenue.

Typically, hotels are geared to deal with that, and that's the case this time also. When in that situation you're hit with a sudden loss of income, loss of groups, and so on and so forth, the ability to control cost is not immediate.

If you see the same thing in April, for instance, you'll see an improved number because the management had a month to respond to outsourced labor, fixed contracts, and stuff like that. When you're hit with a crisis in a quarter when you're prepared for a significant revenue jump, it's sometimes difficult to maintain the flow-throughs of recovery.

What you see as minus 3.7% is on account of the FF&E expense through the P&L, you will see the impact of year-end reconciliations, actuarial costs, all of that, and then, of course, some impact of that outdoor catering and corporate catering business that was taken at

Sriperumbudur.

That's the combination. Can you repeat your second question, please?

No, I think that roughly answers. Our second question was just that if the 50% flow-through, that is what I meant, that 50% flow-through is what we usually expect, and that has not changed even after the GST change.

We do expect a 55% plus flow-through. 50% is under-whelming, 60% is where we are happy.

We have seen a median to be around 55% flow-through across our business, and that structurally has not changed.

Understood. Very clear.

Just one more question. The depreciation number has also increased a fair bit sequentially as well.

Can you help me understand what has led to that?

See, this is actually on account of one-time revaluation of the balance life of the assets. We, after every 3 years, do a reassessment.

Whichever asset where we feel that actually have almost lived its life, we've taken a one-time hit of that. Subsequent to this, I don't think there's going to be any material change in the depreciation number that we have been reporting.

Thank you. That helps.

Thanks, and all the best.

Hi. Thanks for taking my question.

The first question is about your long-term target, which you have spoken about. Two things here.

One, you have shown the bar for FY '27, '28, but just want to understand where do you see, with all these assumptions you're putting in, the growth you're putting in, where do you see in terms of your ROCE target in FY '31 and your net debt-to-EBITDA? How are you going to fund this 2,200 crore of CapEx over the next 5 years, if you could give a bit of a color?

Obviously, what kind of assumptions do you have in terms of your ARR growth over the next 5 years and how do you see these hotels to generate the group-level EBITDA margins? If you could also give a bit of color on that, please.

Thanks.

Achal. I think I'll summarize what are three or four questions you've had.

One was the expected ROCE. Second was net debt-to-EBITDA target.

Third was how do we fund our CapEx. Fourth was the asset-level RevPAR growth, right?

Let me take the easier questions first, and then I'll come to the more difficult ones. In terms of net debt-to-EBITDA, Achal, I'll repeat.

Since we've gone public, there are only two guidance we have given. One, in terms of what we expect the revenue growth to be in the long term.

I'm kind of proud of the fact that we've held on to our 9% to 11% guidance pretty much from the day till today, and we've seen lots of highs and lots of lows in market. I think what we have learned is that when you give a long-term guidance, it should remain long-term stable and should factor in the events.

We had factored in events, and we stay absolutely confident of maintaining a 9% to 11% total revenue growth from same-store hotels, right? That's number one.

Secondly, second guidance we have given is the fact that this company is committing to bring the leverage to 2.5 times net debt-to-EBITDA, right? We are currently at 3 times net debt-to-EBITDA.

If we had not seen the interruptions that we saw during the year, number would have already gone to a two zip code, right? Could have been 2.8, could have been 2.9, but we would have been at 2.8.

Typically, when we guide our investors, we keep a margin of error. We were thinking and hoping we'll be at 2.8 times net debt-to-EBITDA at the end of the year, guided to 3.0, circa 3.0.

We are precisely at 3.07 as when we reported our numbers. As of today, we maintain our guidance that this company will stabilize its net debt-to-EBITDA at 2.5 times.

I think, give us another 12 to 18 months, we should be in that zip code. Third thing is in terms of CapEx funding, and I think we've articulated that our last year free cash flow production, which is nothing but EBITDA minus interest expense and lease MG, is approximately 300 crores.

When we looked at the recent interest rate reductions that we've been able to achieve, that number, without changing the EBITDA number, would have been about 310-odd crores. Now there are three things which will happen.

We are underwriting, Achal, that this 310 crores is largely secured only this is on the back of a really, one could say, a tough year, right? This 310 crores is really available to us for the next 4 to 5 years because the base is tested on a really tough year.

The second thing that we are underwriting clearly is that 9% to 11% revenue growth. Now, when we looked at revenue growth, EBITDA growth, what could be the future value of this company, we are obviously put a lens of optimism and growth.

When we underwrite cash flows and leverage, we put a lens of pessimism. Therefore, what we do is we assume no operating leverage, and we pretty much apply the same RevPAR or revenue growth to EBITDA growth.

If we only get about 9% to 10% EBITDA growth, that will give us an incremental 700 crores of free cash from our existing pool of assets in a 5-year period. Then, starting FY '28, when the W opens, and then subsequently we open other hotels, assets from now till FY '31 will contribute incremental about 4 to 500 crores of EBITDA.

Now, as we've articulated, we are not seeking incremental debt, and therefore the EBITDA from those assets have a real flow-through to our free cash. We have reasonable source and visibility of financing for funding the approximately 2,200 crores of CapEx.

Now, again to be cautious, we've done two things. When we are considering the revenue and EBITDA, we have ignored Navi Mumbai and One Financial District Hyderabad.

We have assumed zero contribution from those because these are quasi-greenfield, and we know what happens to greenfield, right? When we are considering the CapEx, we are assuming these hotels are going as per plan, and therefore we've taken the full CapEx for this 5-year period.

We have built in some margin of error, hopefully, in the way we've laid out our cash flow forecast. That's the three easy questions, okay?

Now let me come to the more difficult questions, which is the ROCE part. If you see, our current pool of assets are really well-geared to get to the targeted 14% to 15% ROCE, right?

We think there is very little risk to that. The current pool of assets, we could underwrite to be at 14%, 15% ROCE.

Now let's target the new openings. Now, the new openings will be a mixed bag, okay?

There will be hotels like Ingka, there will be hotels like W Hyderabad. These hotels are on variable leases, and unlike the freehold assets, they tend to deliver very good ROCEs early on.

If the group-level ROCE is in the zip code of 14%, 15%, the W Hyderabad opening, let's say, in FY '28, when that asset gets fully capitalized, first of all, we don't carry the depreciation of the building in our books because we've leased it, right? We expect the ROCEs to be not dilutive to where we are targeting the group to be, right?

Similarly, when we get the delivery of the Ingka Centre hotel, our investment is largely in FF&E and hard finishes, and we have strong markets, again, this is an asset which will not be very dilutive. Third thing, which I think we've not spoken about enough today, is this Marriott in Sriperumbudur, Chennai.

Now, it's not very often that a company can add a whole Marriott hotel to its existing portfolio without investing a rupee on real estate. The current Fairfield by Marriott on that piece of land is at about 30% return on capital employed.

If you take the total capital employed in that asset and the current EBITDA, we should be at about 28% to 32% return on capital employed. On that piece of land, we are adding a whole 130-room Marriott hotel.

As that hotel opens, we expect the ROCEs to be extremely high for that hotel because there's no underlying real estate expense. Generally, we expect our ROCE profile to be maintained in that mid-teens zip code, even though we are opening a lot of new hotels, and classical wisdom will caution you that new openings could be dilutive to your ROCE, but a combination of variable leases and the fact that we are on a piece of land where the underlying value of land has already been accounted for gives us a reasonable protection.

I'm sorry it took long to answer this, but I think it needed a bit of an explanation.

Sure. Thank you so much, and wish you good luck.

I'll come back in the queue.

Thank you.

Hi. Thanks for the opportunity, sir, and congratulations on good set of numbers.

My first question was I wanted to delve a bit more on asset recycling that you mentioned. You want to evaluate more opportunities.

I believe we have already done asset recycling north of 200 crores, and as per our earlier target, only 100-odd crores recycling is to be done. Are you planning to go beyond this 300 crores targeted number in terms of recycling?

In terms of the nature of the recycling, is it the complete sale of asset like we saw in case of Ahmedabad or Chennai, or for our Caspia asset, or would it be similar to what GIC did, a minority dilution at asset level? That's my first question.

Vaibhav, first, I think asset recycling is a part of our long-term strategy, and the driving factor behind asset recycling is nothing but ensuring that we deliver a higher return on capital employed and higher growth. Constantly the investment committee first and then the board evaluates that are all of our assets geared to: (a) deliver high ROCE, (b) protect ROCE, and (c) continue to deliver earnings growth from the contribution of the earnings growth from that particular asset, right?

(2) We are constantly looking at opportunity cost that what is the, for instance, the market value of that asset, and what would be our ROCE on the market value. One thing is the ROCE on our book value, which has been depreciated.

Second, what is the return on capital employed on the opportunity cost or the underlying market value of that asset? If we feel that the market value is really high, and therefore on the current income, the ROCEs will be really low, but at the same time, we have the ability to acquire a hotel where our ROCEs will be mid-teens to high teens, we are often compelled to evaluate that candidate for an asset recycling.

This is something, just as our investment committee and board meets often in a year to evaluate where should we deploy capital, and the same board meetings, we have debates about is our current portfolio behaving well, and are there candidates within our portfolio which would be better recycled than held on the books? That's really a capital discipline that we carry as a byproduct of an institutional investor group, right.

Therefore, you're absolutely right. We think our target on asset recycling is bigger than a residual 100 crores.

We expect that in the next 2 years, it should be about 200, 250 crores, largely through sale of assets, okay? In terms of minority dilution, that is a larger strategic goal and often is done when either we expect to monetize a value created in an asset, just as we did in Courtyard Fairfield Bengaluru, where we created tremendous value for our shareholders, and then we kind of, in your language, public markets, booked a profit by diluting 35%, and it secures the base for perpetuity, effectively, right?

That's a more longer-term strategic decision which I would not like to comment because it'll be totally speculative, right? In terms of asset recycling, I can confirm that our current target is more than 100 crores.

I would put that number to be in the zip code of about 200 crores, right, 200 to 250 crores, largely in form of single assets where we think our money should be redeployed in more high-growth opportunities. Vaibhav, I hope I've answered your question.

Yes, sir, clear. Just quick follow-up on this, actually.

Isn't there a risk to invest the money that you generate from the sale of assets into a newer venture? Is there a significant delta that you can capture in terms of ROCE to take that risk?

Let's say if your existing asset is delivering 12%, 13% ROCE, and if you are generating 15% ROCE in a new venture, with a risk that it may or may not be successful, isn't there a trade-off in terms of taking that risk?

Vaibhav, I'll give you some of the examples. Last year, for instance, we sold Caspia Delhi.

We sold Caspia Delhi for a consideration of 65 crores. On that day, the EBITDA contribution was just about a crore and a half, 2 crores.

Even if we had fully

renovated, rebranded, capitalized on the current value of that asset, we would have not 100 crores for that asset, right? Interestingly, what are we doing with that capital?

With that capital, we're using to do something like a W Hyderabad, for instance. I'll just give you an example, right?

Money is fungible, hard to say it went from A pocket to a B pocket. The same money, which was delivering a crore and a half, 2 crores of EBITDA against a 60 crores value, it's guaranteed to deliver you a double-digit ROCE in a asset like W Hyderabad.

I am using a word that I normally hesitate to, which is guaranteed, but I'm using that word because the margin of error is very, very large in that asset, right? I can be a slight bullish on that.

You're absolutely right. Asset recycling needs to come with a very, very large margin of safety.

Unless that margin of safety is not there, you're absolutely right, Vaibhav, it is not worth considering asset recycling. All of our asset recyclings have carried that significant margin of safety.

Even if your new deployment goes wrong on your underwriting, you would still outperform your existing assets, and that's the basic thesis.

Perfectly understand, sir. Second question on Bangalore market.

Bangalore market is expected to see good pickup in terms of the upcoming supply, especially into upscale, upper upscale markets, where our majority of portfolio lies. Again, another competitor of yours actually yesterday announced that they are planning to set up a Westin brand in Bangalore with Marriott.

Is there a risk that you see for Bangalore market, especially given the market has run up quite a lot, and over last couple of quarters, we have started seeing occupancy taking a hit, though ADRs are still sustaining at higher levels? Longer term, is there a saturation risk for Bangalore?

Vaibhav, this question needs to be answered at a micro-market level, okay? If you look at our presence in Bangalore, it's Outer Ring Road, and clearly we are seeing new hotels open through this year in Outer Ring Road, Bangalore.

We have, therefore, in our own underwriting, when you give a guidance of 9% to 11% for the group level, in that asset, we've kind of moderated our expectations on growth, given the fact we have a large opening over the next 12 months in Outer Ring Road. Our second investment is in Whitefield, which is where we have the Tribute and the Westin.

I think Whitefield has absorbed a lot of supply over the last decade, and now is coming to that turn where the new supply is not material over the existing base. Supply growth percentage is not threatening in Whitefield, Bangalore.

The new supply in Bangalore is concentrated between airport and Hebbal, okay, which is really where the land is available, new office growth is happening. We have zero presence in that precinct.

If you were to take the list of future supply in Bangalore—and I don't want to put a number to it because I don't have the data—but more than half of that future supply is concentrated in that 25 km corridor that starts at the Bangalore International Airport and would end at Hebbal, which is where you have the Manyata Tech Park and all. I think it's a business of micro-markets.

It's not a business where supply and demand could be evaluated at a city level, to be honest with you. The same thing will apply to Hyderabad also, Vaibhav.

If you look at Hyderabad, there's a lot of announcements of new supply, but a lot of those announcements are not in the precincts of the micro-markets where we have a current inventory or proposed inventory. All of this needs to be evaluated at a micro-market level.

That's one. Second is Bangalore as a market today is a total inventory of about

17,000

rooms, 18,000 rooms, right? Bangalore needs to add 1,000 rooms more every year for it to be growing at 5% a year, right?

If supply is growing at 5%, which doesn't seem the case, by the way, in Bangalore, which means 1,000 rooms a year every year for next 5 years, right, the supply CAGR in Bangalore may be in the zip code of 5%, 5.5%. We need to make sure the demand continues to grow ahead of that, right, which obviously is a factor of GDP growth rate, growth of office, airlines, ancillary business, on and so forth.

I think the demand environment, the current supply base, the percentage supply growth in Tier 1 markets is not a threat. Again, I will completely agree with you, we need to be cautious and evaluate it at a micro-market level.

Understand, sir. Can I squeeze in last bookkeeping question, if I may?

Sure, please. Please.

Just on W Hyderabad, you have said opening will be in '27. Can you specify the quarter in which it will be opening?

Hyatt Regency Pune has been in pre-opening for last quarter as well. Any particular reason that we're still mentioning the status as pre-opening on that?

These are 22 apartments which are ready and waiting for the final approvals, Vaibhav, right? This is not a hotel.

The hotel is operating completely. These are 22 new apartments we've completed, but we're waiting for the final regulatory approvals.

That's why, unless we don't get that, it will unfortunately be seen as pre-opening.

Okay. On the revenue growth that you mentioned, 9% to 11%, we had mentioned it's same-store revenue growth

Thank you, sir.

Thank you for the opportunity. Sir, I had a follow-up question on the capital recycling that you answered to previous participant.

You are recycling hotels which are struggling. If the ROCE based on the market value of any of your hotels is less than what you desire because of increase in the market value of the hotel, then you are willing to recycle that capital also, if the understanding is right.

Then in a way, sir, you are trying to operate a hotel which has a kind of mediocre ROCE, looking to scale it up, and then offload it. In that case, sir, aren't we kind of digressing our business model to trading of hotels also, and not just running the hotels?

No, Prashant. I don't think we are trading hotels.

In the last 3 years, we have sold three hotels, or four hotels, right. Number two, let me clarify.

The hotels that we sell often are non-core hotels. We often have bought portfolios, and when you buy a portfolio, you get hotels otherwise on a stand-alone basis you would have not bought, and therefore they're better be recycled and that money deployed in markets and assets that you are core to you.

I'll give you an example: Caspia Delhi, North Delhi. I know it looks like a Delhi zip code, but North Delhi business is very different to the business we are used to operating in, right?

I would want to clarify that it is not trading of hotels, really. Our job is to build a very large portfolio of operating hotels.

If you look to any large income-producing hard asset business globally, right, the way to protect shareholder value in the long term is to ask yourself hard questions, right, about is every asset creating future value? Now, not every year you'll get an answer that two hotels are not, but every 2, 3 years, you'll clearly get an asset or two where you feel that you're better off disposing of the asset to redeploy that in a higher-return segment.

It's not active trading, but it is a fiduciary responsibility to make sure that we evaluate the value of each hotel, we make sure that the hotels we own are geared to provide long-term value creation for our shareholders. If there is friction to that, I think it's a fiduciary responsibility to make sure that we do the right things to redeploy that capital.

It does not make it as a trading of hotel, and the percentage of that remains to be minuscule. The impact, by the way, could be substantial, but the actual monetization program itself is a minuscule of what the value that we carry.

Just to clarify that.

Sir, hotels which are struggling, we recycling that capital is understandable. If the property prices of any micro-market increases, and based on the market price, supposedly the ROCE profile is not as per what we are targeting, in that case, sir, that is a bit confusing.

In that case, I would be a bit confused if you are going to sell off your marquee hotels also, may not be so frequently, but that sort of creates a confusion.

Prashant, I used the word non-core hotel. Even in the presentation, if you see, we have used the word non-core hotel.

We're not going to sell a Courtyard Bangalore, or a Sheraton Hyderabad, or a Hyatt Regency Pune, right? I think this is about some of the smaller hotels that we acquire, and we acquire sometimes as a part of our portfolio acquisitions.

I don't think anybody needs to be worried about us tomorrow saying, "Oh, the value of Courtyard Bangalore has become 3,000 crores in the market, and therefore our EBITDA is only 100 crores. Should we sell it?"

right? If you see the slide number 10, we have used the word non-core hotel sold, right?

It will always be applied to non-core hotels where their EBITDA contribution is negligible, their future EBITDA contribution to the group is even less than negligible, you don't see the needle moving in terms of revenue growth, EBITDA growth, absolute revenue, absolute EBITDA, because these are non-core hotels which have not material contribution to the portfolio.

Sure, sir. Thank you for the clarification.

Good morning, sir. Thanks for the opportunity.

Sir, GIC, I believe, has committed around 750-odd crores, and we've received about 500, 550. There's some conditions precedent which are pending.

Could you sort of elucidate on what are we expecting and when are we expecting the rest of the money?

We've received 600 crores so far. The balance investment is 150 crores.

We expect that to come over the next 2 years' period because that's coming in line with the CapEx spending on the Westin Tribute Bengaluru.

Got it, sir. Thank you.

Are we expecting further such investments in a subsidiary platform, or are we only expecting sales of entire assets?

No, so as I mentioned earlier, in the short term, we've identified a few hotels which total value should be about 200-odd crores, clearly these are small hotels. At a subsidiary level, there is no plan as of date.

Okay. Got it.

Thank you, sir. Thank you so much.

All the best.

Ashish, big congratulations to you and the team on doing a fantastic job of managing the ship. Just a very quick question.

Given your performance and ramp in earnings, you're trading at a massive discount to the sector, and maybe that's partly because of the leverage on the books and the fact that you've just become profitable about 2 years ago. Given where the stock is trading, and I understand that growth and deleveraging are priorities, but would it make sense for management to consider carving out a small amount of capital for buybacks on a sustained basis?

Viraj, I'll address it in two, three things. Number one, multiples are decided by all of you.

EBITDA is decided by us. We're fairly confident that, notwithstanding the multiples, this company is a compounding machine when it comes to growth of revenue, EBITDA, and cash flow, and that itself will create phenomenal shareholder value, okay.

Number two, your question about would a cheap stock attract us towards looking at things like buyback? I would take everybody to that slide number just a second.

I think slide number 16. This is an evolving discussion at a board level.

Notwithstanding the share price or the discount, Viraj, we are under a fiduciary obligation to create shareholder value and allocate capital. I think our waterfall has already been stated on slide number 16.

The waterfall states that the first commitment that we have is to maintaining a strong balance sheet because that preserves all of our value.

Absolutely.

Viraj, you'll have to mute yourself. First is the deleveraging, 2.5 times net debt-to-EBITDA.

The reason we are comfortable with 2.5 times is because: (a) all of our debt is circa around 12 years, we have very little principal repayments for the first 3 to 5 years, our financing cost is now down to almost 7.9%. When you have the ability to carry such high-quality, long-term debt with no repayment pressures, 2.5 times clearly is a very accretive position to create shareholder value.

Just wanted to articulate why 2.5 times net debt-to-EBITDA and why not lower. Second is clearly we need to make sure that the company has not just adequate, but slightly more than adequate CapEx to fund its growth, because when you're developing hotels, there's always a risk, as I think Karan articulated, about cost overruns, inflation, and so on and so forth.

The company needs to create reasonable buffers for no surprises. Third is we continue to feel that India provides tremendous growth opportunities in terms of continue to look at acquisitions, leases, on and so forth.

Having said that, we've become very efficient. If you see last year, all of our were leasehold or asset-light in RARE, and therefore we have moved rapidly, more rapidly than we would have imagined ourselves to be in a more capital-efficient growth model, right.

After all of that, if there is surplus capital, we have already committed that the board will consider a disciplined mechanism to return capital directly to the shareholders, right. You're absolutely right, any good company globally will have a capital allocation discipline.

We have tried to set that discipline on slide number 16. It is going to be a continued discussion at a board, investment committee level.

I think this discipline will decide what we do in future. You're absolutely right, I think we will be to making sure that we do everything in our means without disturbing long-term prospects for the company, but yet create shareholder value.

Thank you so much for a very engaging conversation. As I mentioned earlier, FY '26 was a 12% revenue growth.

While some may say it's good, some may say it's bad, from our perspective, we are excited because in spite of severe interruption, the company and the sector largely held on to a long-stated conviction that the demand-supply is in our favor. I think as we start seeing normalization of many destructions we've seen during the past 1 year, the upside continues to be ahead of what we've delivered so far in the past.

That upside obviously goes straight to our bottom line and allows us to have a lot more flexibility to grow the SAMHI and also shareholder values. Thank you so much for all of your confidence and participation, and we look forward to speaking to you soon.

Have a good day.