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Chalet Hotels is expanding its portfolio with new acquisitions in Bengaluru, Goa, and Rajasthan, as part of its strategy to diversify and capture leisure market opportunities. Currently owning 10 hotels across six cities, the company plans to add over 1,000 rooms in new and existing properties. With sustained demand and projected growth in revenue per available room, Chalet remains committed to high returns. Recently, Chalet reported a 20 per cent rise in revenue but a quarterly net loss due to reversed tax benefits. The company remains financially strong, with internal accruals supporting growth and reduced debt levels.
Chalet Hotels is well-capitalised to expand its portfolio and is actively seeking new assets in Bengaluru, Goa, and Rajasthan, according to Managing Director and Chief Executive Officer Sanjay Sethi. Owned by the K Raheja Group, Chalet Hotels currently operates 10 properties across six cities and is set to add over 1,000 rooms through new developments in Bengaluru, Goa, Delhi, Lonavala, and Navi Mumbai. The company's latest expansion aims to diversify its portfolio, as 60 percent of its inventory is currently in Mumbai, while capturing opportunities in the leisure market. Robust demand and projected double-digit growth in revenue per available room (RevPAR) are positive factors driving these new investments. Advertisement
Sethi highlighted that since 2019, Chalet Hotels has grown from three cities to six, and recently acquired an 11-acre plot in Goa to build a 170-room hotel. He added that the company is eager to expand its presence further, particularly in cities like Bengaluru, Goa, Rajasthan, and areas within driving distance from Mumbai and Delhi. He described the company's approach as 'hungry for growth,' while emphasising the priority to secure high margins and returns on all new investments.
Chalet Hotels posted a 20 per cent year-on-year revenue increase to INR 383 crore in the second quarter of the current financial year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) also rose by 20 per cent, reaching INR 155 crore, with margins steady at 40 per cent. However, the company reported a net loss of INR 138 crore during the quarter due to the reversal of certain tax benefits.
In the past month, the company's board approved raising INR 600 crore via non-convertible debentures. Sethi clarified that this provision is preparatory, as the company does not have an immediate need for capital. He added that internal accruals are strong enough to support future growth. Over the last five years, Chalet Hotels has reduced its debt from around INR 3,000 crore to INR 1,650 crore.
Chalet Hotels' proactive expansion strategy reflects its commitment to growth and long-term profitability. By diversifying its portfolio in high-demand leisure locations, the company is positioned to strengthen its presence and resilience in India's hospitality sector. With strong financial backing and disciplined debt reduction, Chalet is well-prepared to seize new market opportunities and drive future success.
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