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  • India’s Domestic Travel Boom Drives 11 % Income Growth at SAMHI Hotels in Q2 FY26
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India’s Domestic Travel Boom Drives 11 % Income Growth at SAMHI Hotels in Q2 FY26

SAMHI Hotels posts 11 % income growth in Q2 FY26 as India’s hospitality recovery accelerates on strong domestic tourism and enhanced travel connectivity.

India’s Domestic Travel

India’s hospitality sector is riding a wave of momentum, and the recent performance of SAMHI Hotels Limited underscores just how strong the rebound has become. The company reported an 11 % rise in total income during the second quarter of fiscal year 2026, illustrating the broader recovery of travel and lodging in India and highlighting how domestic demand is driving momentum across the industry.

SAMHI Hotels, a leading hotel-asset management and ownership platform in India, serves a diverse Traveller base with both luxury and mid-scale branded properties across several major Indian cities. With travel across India mobilised by improved connectivity, rising incomes and a growing appetite for experiences, SAMHI’s ramp-up is emblematic of the sector’s trend-shift away from pandemic-related constraints and toward sustained growth. Their expanded footprint across metro markets and association with global hotel brands puts them in a strong strategic position to capitalise on the travel upswing.

Robust Q2 Performance Signals Recovery

During Q2 FY26, SAMHI posted strong operating metrics. Revenue rose by 11 % year-on-year, coming in at about INR 2,963 million. Simultaneously, the company recorded an improvement in RevPAR (Revenue per Available Room) of approximately 11.2 % as occupancy and average room rates both strengthened. EBITDA grew by around 14.2 % compared to the same quarter last year, while profit after tax jumped more dramatically, signalling both recovery in operations and efficient cost control. These figures highlight that the company is moving beyond merely recovering pre-pandemic business to leveraging favourable market conditions in Indian hospitality.

Domestic Demand at the Core of the Surge

Where the pandemic had slowed international arrivals and forced a heavy dependence on limited market segments, the current recovery in India is led overwhelmingly by domestic travellers. With travel within India resuming via vacation getaways, business travel, weekend breaks and stay-cation trends, hotels in metro and emerging destinations alike are benefitting. A rising middle-class with greater disposable income, improved air and rail connectivity, and the appeal of local-destination experiences are all working together to drive occupancy gains and extended visitor stays.

SAMHI’s portfolio reflects this shift: across its properties in cities such as Bengaluru, Pune, Hyderabad and Chennai, the surge in business-travel and leisure-tourist segments is clear. The company’s ability to cater to a broad traveller profile—luxury business travellers, mid-scale leisure guests, and domestic holiday-makers—means it is well positioned to ride this wave of demand. As India invests in airport expansions, new domestic routes and upgraded hospitality infrastructure, the travel ecosystem is becoming more accessible and vibrant than before.

Strategic Growth and Portfolio Strength

Beyond the immediate financials, SAMHI is actively growing its chain of branded hotels and expanding its geographic footprint. The company currently operates properties across major Indian cities and has tie-ups with global brands like Marriott, IHG and Hyatt. Their strategy extends to developing new assets and increasing key-room inventory in high-growth markets, as well as targeting mid-scale brands to capture the broad domestic audience. With nearly 5,000 rooms across 30+ properties and several additional developments under way, SAMHI is scaling to meet rising stakeholder demand for both corporate and leisure stays.

This strategy dovetails neatly with the broader hospitality industry in India: as more travellers seek comfort, brand-standards, reliability and varied price-points—whether for business, family holidays or weekend escapes—companies spread across segments are finding opportunity.

Travel Connectivity and Infrastructure Tailwinds

One of the core enablers of India’s travel rebound is the rapid expansion of air and rail connectivity across the country. Domestic airlines have launched more routes, regional airports have been upgraded, and internal travel has become more efficient. This has widened the pool of travellers who can access popular and emerging destinations. For a hotel operator like SAMHI, these developments mean more consistent guest flow, higher room engagement rates and better yield per room.

Emerging destinations and newer hotels are receiving attention for the very reason that urban travellers increasingly seek escape from congested city centres. Hotels in locations with strong transport links, nearby attractions and business hubs are noticing a higher conversion of guest nights. SAMHI’s staging in metro and growth corridors positions it nicely within this evolving dynamic.

Implications for India’s Tourism Landscape

The strong performance of SAMHI Hotels is not simply a corporate win—it is a marker of broader health in India’s tourism and hospitality ecosystem. Hotels are critical infrastructure for travel; when they perform well, the entire value-chain from food & beverage to local transport, excursions, attractions and retail all benefit. As accommodation rates improve, destinations become more viable, new entrants invest in hospitality infrastructure and regional tourism markets receive renewed attention.

India’s government has been encouraging tourism expansion as a means of economic growth and job creation. With domestic travel surging and international travel gradually rebuilding, the accommodation sector is stepping up to meet the demand. Hotels that were once struggling through low occupancy are now reporting stronger utilisation and rate recovery. The result: a more vibrant, diverse, and competitive tourism market.

Outlook and Considerations

While SAMHI’s numbers are highly encouraging, the hospitality sector remains cyclical and capital-intensive. New supply entering the market, external economic shocks, shifts in guest preferences and rising local competition mean that operators must stay agile. SAMHI appears to be navigating these factors through a diversified portfolio, strong brand partnerships and growing scale.

Looking ahead, continued growth in income and RevPAR will depend on sustaining demand, expanding into under-penetrated markets, maintaining occupancy, controlling costs and enhancing guest value. For India’s hospitality sector, the next phases of growth will be about consolidating gains, improving margins and extending reach into smaller towns, resort destinations and regional hubs beyond the large metros.

Final Word

The 11 % income growth reported by SAMHI Hotels in Q2 FY26 is a clear indicator of India’s hospitality recovery being well underway. Backed by a surge in domestic travel, improved connectivity and an expanding hotel infrastructure, the company’s performance reflects the vitality of a sector ready to reclaim its pre-pandemic potential and beyond. For travellers, this means more choice, better experiences and ever-improving standards. And for local economies, it spells renewed investment, job creation and tourism-led growth. As India positions itself as an attractive global and domestic destination, hotel platforms like SAMHI will play a pivotal role in shaping the travel-experience landscape.

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