- Chalet Hotels’ core income rose 11 percent in Q2.
- Profit after tax rose 40 percent with tax credit.
- Leisure portfolio RevPAR grew 34 percent.
Income from its core hospitality and annuity businesses, excluding residential, rose 11 percent year on year to $54.10 million in the quarter ended Sept. 30. EBITDA from core operations grew 13 percent to $24.07 million, with the margin rising 1.1 percentage points to 44.5 percent.
“Despite reduced air connectivity and higher airfares impacting certain business travel markets, we delivered 11.3 percent year-on-year growth in ADR and a 7.2 percent increase in RevPAR,” said Shwetank Singh, Chalet Hotels managing director and CEO. “Our leisure properties performed particularly well, supported by improvements in both occupancy and room rates.”
Hospitality and rental business performance
Chalet’s hospitality business recorded an 11.3 percent increase in ADR to $143.48. Occupancy was 64.2 percent, compared with 66.7 percent a year earlier, while RevPAR rose 7.2 percent to $92.18.
Hospitality segment income increased 8 percent to $43.60 million and EBITDA grew 11 percent to $17.9 million. The segment’s EBITDA margin was 41.1 percent. Its leisure portfolio recorded 34 percent RevPAR growth, supported by higher occupancy and room rates.
The rental and annuity business reported 91 percent occupancy. Its monthly revenue run rate increased to $3.18 million in September from $3.07 million in June. Revenue from the segment rose 22 percent to $9.54 million, while EBITDA increased 23 percent to $7.94 million. The EBITDA margin was 83.2 percent.
Tax credit and project progress
Profit after tax rose 40 percent to $22.9 million, including an $11.91 million tax credit. Profit before tax fell 39 percent to $13.14 million from $21.69 million a year earlier. Total income declined to $54.14 million from $78.84 million.
Chalet rebranded its business hotel in Navi Mumbai as Athiva Pulse, Navi Mumbai, Autograph Collection. The launch marks its second hotel under the Athiva brand.
Construction at CIGNUS II in Powai, Mumbai, is progressing, with completion expected by the end of fiscal 2027. Taj Delhi International Airport is also under construction and is expected to open in early fiscal 2028.
Foundation work is underway at The Ritz-Carlton, Hyderabad, and guest room interior design has started. At Hyatt Regency, Airoli, Navi Mumbai, 70 percent of the foundation work is complete and waterproofing is in progress. The company is also evaluating branding for its Udaipur resort and said other key projects remain on track.
Chalet Hotels is targeting 5,500 hotel keys by FY30 as it expands through a mix of owned, franchised and third-party-operated properties.
