Chalet Hotels Ltd

Brand change details

• Rebrand of Four Points Navi Mumbai, Vashi to Athiva Pulse, Navi Mumbai Autograph Collection, effective Aug 25, 2026.
• 152 rooms including 34 suites; total event space of 30,000 sq ft.
• Wellness ecosystem includes The Daily Club with fitness, therapies and recovery options.
• 100% women-led artisanal cafe; Athiva positioned as premium lifestyle brand.
• Second Athiva-branded hotel and second Autograph Collection hotel from Marriott in India.
• Strategic partnership with Marriott International for Autograph Collection branding.
• Brand aligns with Chalet's wellness-by-design and local experiences strategy.

Dividend details

• AGM for FY 2025-26 on 21 Sep 2026 at 4:00 PM IST via video conference.
• Record date fixed as 11 Sep 2026 for Final Dividend eligibility.
• Final Dividend for FY 2025-26 payable within 30 days of AGM.
• Subject to shareholder approval at AGM.
• Equity dividend indicated by scrip code 542399.

Deal details

• Athiva-branded hotels to be developed in Pune (231 keys) and Hyderabad (150 keys).

Leasing structure

• Hyderabad repurposed building under Mindspace REIT SPV; Pune to be warm shell, Chalet fit-outs.

Capital efficiency

• Capex deferred to later development stages under long-term lease model.

Timeline and scope

• Hyderabad launch by FY2029; Pune launch by FY2031; 3 F&B outlets each.

Strategic impact

• Expands ATHIVA footprint in key business districts; strengthens Pan-India premium brand strategy.

Pipeline impact

• Total ATHIVA pipeline ~2,036 keys; adds 381 keys to Chalet's inventory.

MOU for long-term leases with Mindspace REIT SPVs

• Two binding MOUs for long-term premises leases in Pune and Hyderabad.
• Pune lease: Grey Shell; 231 rooms; brand ATHIVA Upper Upscale.
• Hyderabad lease: Warm Shell; 150 rooms; brand ATHIVA Upper Upscale.
• Investment per key: Rs 10.8 million (Pune) and Rs 13.5 million (Hyderabad).
• Financing: internal accruals and debt in both cases.
• Timelines: capacity addition by FY2028-29 (Hyderabad) and FY2030-31 (Pune).
• Rationale: aligns with Chalet's investment and expansion strategy.

Financial Performance

• Core business revenue rose 10% YoY to INR 5,140 million (ex-residential).
• EBITDA rose 15% YoY to INR 2,400 million; margin 46.7% (up 231 bps).
• Net profit for the quarter stood at INR 861 million.
• Hospitality revenue grew 9% YoY to INR 4,185 million; EBITDA 1,784 million.
• Hospitality EBITDA margin expanded 92 bps to 42.6%.
• Consolidated numbers not comparable YoY due to one-time Koramangala residential recognition.
• Koramangala Phase 1 handover completed; Phase 2 168 units pending handover in FY27.
• Net debt at June 2026: INR 20,405 million; liquidity around INR 4 billion.
• Average cost of finance declined to 7.4% in June 2026.
• Capex plan of INR 30 billion for FY27-29, largely funded by internal accruals.

Operating Update

• RevPAR up 6.5% YoY; ADR up 8.5% YoY.
• Resorts delivered 19% RevPAR growth; Westin Rishikesh strong.
• Powai complex upgrades: 0.9 million sq ft office space; >90% occupied; EBITDA ~INR 1,300 million.
• MMR RevPAR was dragged down by Powai and Vashi construction.
• CIGNUS II Powai on track for FY27 end completion.
• 70 Taj Delhi rooms to launch in Q4 FY27; rest phased in FY27–FY28.
• June-26 rental run-rate: INR 290 million per month; 300–320 million in FY2027.
• Koramangala Phase 1 revenue INR 73 million; EBITDA INR 31 million; Phase 2 168 units pending handover FY27.
• Current yearly rentals enable LRD eligibility of about INR 2,000 crores.

Balance Sheet & Liquidity

• Net debt June 26: INR 20,405 million; acquisitions caused a rise.
• Liquidity around INR 4 billion as of June 26.
• 129 keys added; no leverage increase in last eight quarters.
• Debt allocable to assets under construction: INR 10,914 million.

Projects & Capex

• Planned capex: INR 30 billion over FY27-29 across hospitality and CRE.
• CIGNUS II Powai commissioning targeted FY27-28.
• Taj Delhi International Airport project: 70 rooms to launch in Q4 FY27.
• Koramangala commercial space ~160,000 sq ft under construction; lease by FY2028.
• Dukes Retreat upgraded to Athiva; 67 additional keys; improved facilities.
• Udaipur expansion potential; approvals from local authorities and army cantonment; timeline to be clarified.
• South Goa hotel: approvals pending; ground-breaking and opening timeline not fixed.

Outlook & Guidance

• Q1 performance sets a good tone for the full year.
• Domestic leisure demand remains strong; supports occupancy and ADR.
• Leisure portfolio target remains 20% of the mix.
• Balance sheet discipline; capex funded through internal accruals.
• Long-term growth depends on disciplined execution and pipeline progress.

Q&A Highlights

• Management declined to share exact GDS/OTA commission figures.
• MMR hospitality revenue share is about 43%.
• Deloitte renewed for one year at Westin Hyderabad Hitec.
• South Goa opening timeline uncertain; approvals pending.
• JW Sahar remains strong; Powai under renovation; occupancy expected to improve in H2.

Meeting Details

• Date and time: July 30, 2026 at 11:00 a.m.
• Event/organiser: Chalet Hotels Limited
• Type and mode: group earnings call, virtual audio recording

Participants

• Key company participant: Company Secretary and Compliance Officer

Purpose

• Discussion of unaudited quarterly results for the quarter ended June 30, 2026

Additional Notes

• Audio recording of the earnings call will be available.
• Transcript or presentation may be made available.

Business Overview

• Hospitality-focused Chalet Hotels operates branded hotels, with Commercial Real Estate and Residential projects.
• Acquired Seasons Hotels Private Limited on 5 May 2026; asset acquisition.
• Pipeline of about 1,655 rooms across under-construction and planned hospitality assets.
• Sustainability: 100% EV fleet and LEED Gold/Platinum properties.
• Strategy emphasizes active asset management and growth via large-scale developments.

Key Operational Highlights

• Q1 FY27: Combined ADR ₹13,247; occupancy 64.8%; RevPAR ₹8,582.
• RevPAR up 6.5% YoY; ADR up 8.5%; occupancy down 1.2 pp.
• Hospitality revenue ₹4,185 mn; EBITDA ₹1,784 mn; EBITDA margin 42.6%.
• Residential revenue ₹73 mn; EBITDA ₹31 mn; one unit handed over in Q1 FY27.
• Commercial Real Estate revenue ₹865 mn; EBITDA ₹735 mn; occupancy 91% with LOI.
• Consolidated revenue ₹5,213 mn; EBITDA ₹2,431 mn; margin 46.6%.
• VSS payout ₹98.49 mn in quarter; SHPL acquisition treated as asset purchase.

Financial Performance

• Total income ₹5,213 mn; YoY decline 42.6%.
• EBITDA ₹2,431 mn; EBITDA margin 46.6%.
• Profit after tax ₹861 mn; down 57.6% YoY.
• EPS basic ₹3.93; ₹9.30 in prior year.
• Net debt ₹20,405 mn; net debt to equity 0.52x; cost of debt 7.4%.
• FY26 cash flow from operations ₹10,451 mn.
• Consolidated (ex-Residential) EBITDA ₹2,400 mn; margin 46.7%.

Capital Structure & Liquidity

• Net debt-to-equity improved to 0.52x as of Q1 FY27.
• SHPL acquisition cost ₹1,710 mn; asset acquisition.
• VSS payout ₹98.49 mn in the quarter.
• Cost of debt about 7.4%.
• Operating cash flow FY26 ₹10,451 mn.

Strategic Priorities & Outlook

• Taj Delhi International Airport hotel (~380 rooms) targeting Q4 FY27.
• Athiva Resort Goa (FY28); Ritz Carlton Hyderabad (Q4 FY29); Hyatt Regency Airoli (Q4 FY29).
• Total hospitality pipeline ~1,655 rooms under construction or planning.
• Renewables by 2030; EV fleet by 2025; net-zero by 2040.
• Energy productivity target 85% by 2028; IoT-enabled energy controls.
• Green buildings certifications and EV charging across assets; Mindspace REIT warm-shell lease for Hyatt Airoli.

Risks & Mitigation

• Forward-looking statements subject to risks including earnings fluctuations, growth management, competition.
• Demand volatility and geopolitical factors could affect occupancy and project timelines.

Governance & Leadership

• MD & CEO: Shwetank Singh; CFO: Nitin Khanna.
• Chairman Hetal Gandhi; independent directors on the board.

Financial highlights

• Ex-Resi Total Income 5,140 Mn, up 10% YoY.
• Ex-Resi EBITDA 2,400 Mn, up 15% YoY.
• Ex-Resi EBITDA margin 46.7%, up 231 bps.
• Consolidated PAT 861 Mn.

Segment performance

• RevPAR 8,582 Rs, up 6% YoY.
• Hospitality revenue 4,185 Mn, up 9% YoY.
• Hospitality EBITDA 1,784 Mn, up 11% YoY.
• Occupancy 64.8%.
• Rental/Annuity revenue 865 Mn, EBITDA 735 Mn, margin 85%.

Acquisitions & developments

• SHPL acquisition: 100% shareholding for Rs 1,710 Mn on May 5, 2026.
• CIGNUS II, Powai: substantial completion expected FY27 end.
• Taj Delhi Airport: partial opening planned in Q4 FY27.
• Ritz Carlton, Hyderabad: excavation complete; foundation started.
• Udaipur Resort: expansion potential; branding under evaluation.
• Hyatt Regency, Airoli: foundation and substructure waterproofing commenced.

Operational highlights

• Great Place to Work recognition: 8th in mid-size workplaces.
• 7th consecutive year of recognition.

Outlook & management commentary

• Q1 sets strong foundation for the year; domestic demand recovery.
• Two major projects nearing completion; management optimistic about outlook.

Financial highlights

• Consolidated total income for the quarter: 5,213.14 million.
• Revenue from operations: 5,122.73 million; other income: 90.41 million.
• EBITDA: 2,430.58 million.
• Profit before tax: 1,325.31 million.
• Tax expense: 464.06 million; profit after tax: 861.25 million.
• Standalone revenue from operations: 4,482.13 million; standalone total income: 4,661.00 million.
• Standalone PAT: 867.34 million.
• Quarter EPS: basic and diluted -3.93.
• Consolidated operating margin: 35%; net profit margin: 17%.
• Debt-Equity ratio: 0.65; DSCR: 2.67; ISCR: 6.16; current ratio: 0.65.
• Consolidated segment revenues: Hospitality 4,185.32 mn; Rental/Annuity 864.81 mn; Real Estate 72.93 mn.
• Consolidated segment PBT: Hospitality 1,224.90 mn; Rental/Annuity 579.40 mn; Real Estate 30.20 mn.
• Total segment PBT: 1,834.50 mn.

Corporate actions & governance

• Acquisition: Seasons Hotels Private Limited acquired on 5 May 2026 for Rs 1,710 million; asset acquisition.
• Audit appointment: Deloitte Haskins & Sells appointed as statutory auditors for five years from FY2026-27 AGM, subject to shareholders’ approval.
• Audit Committee approved the unaudited results; results published on NSE/BSE and Chalet Hotels website.

KPIs & leverage

• Total assets by segment: Hospitality 41,183.53 mn; Rental/Annuity 26,414.94 mn; Real Estate 3,159.83 mn; Unallocated 5,140.79 mn; total 75,899.09 mn.
• Labour codes impact: incremental retirals of 0.21 million recognized as exceptional item for FY26.
• VSS cost: 98.49 million incurred in quarter ended 30 June 2026.
• Investment in renewables: 107.73 million; group holds >20% in these entities; not treated as associates.

Security & compliance

• Independent Auditor’s Certificate confirms Security Coverage Ratio for Rs 750 million NCDs is not greater than 1.75x.
• NCDs are secured by first-ranking pari-passu charge over mortgaged properties including JW Sahar Marriott & Retail area.
• Statement prepared for quarter ended 30 June 2026; certificate covers book-value-based calculations.