Chalet Hotels - Playing on discretionary spend

Hoteling company from the stable of K Raheja group, Chalet Hotels Limited (CHL) is an owner, developer and asset manager of high-end hotels in key metro cities in India.

Company has 6 hotels, 1 service apartment, 2 commercial projects and 2 retails projects spread across Mumbai, Pune, Bengaluru & Hyderabad.

Started Name Location Property Capacity
2000 Lakeside Chalet, Mumbai - Marriott Executive Apartments Powai, Mumbai Service residence 173 keys
2001 Renaissance Mumbai Convention Centre Hotel Powai, Mumbai Hotel 600 keys
2009 Four points by Sheraton Navi Mumbai, Vashi Hotel 152 keys
2009 The Westin Hyderabad Mindspace Hyderabad Hotel 427 keys
2012 Inorbit Mall whitefield, Bengaluru Retail
2013 Bengaluru Marriott Hotel whitefield, Bengaluru Hotel 391 keys
2014 Commercial Tower whitefield, Bengaluru Commercial
2015 JW Marriott Mumbai, Sahar Hotel 588 keys
2018 Business Centre & Office Sahar, Mumbai Commercial
2018 The Orb Sahar, Mumbai Retail
2020 Novotel Pune, Nagar Road Hotel 223 keys

Novotel was acquired in Feb 2020.

Apart from the above, company has 2 residential projects at Madhapur (Hyderabad) and Koramangala (Bengaluru). The residential development project at Bengaluru is on hold as the matter is sub-judice before the Hon’ble Karnataka High Court on account of a dispute on the permissible height of the structure.

CHL have branding and operational tie-up with leading global hospitality chains having strong brand name. (JW Marriott, Westin, Marriott, Marriott Executive Apartments, Renaissance, Four Points by Sheraton and Novotel, which are held by Marriott Group and the Accor Group)

Company has entered into a memorandum of understanding with Marriott Hotels India Private Limited for rebranding w.e.f. April 1, 2020, of the existing hotel viz. Renaissance Mumbai Convention Centre Hotel as ‘Westin Mumbai Powai’.

Company is in the process of developing 3 additional hotels and 2 commercial office spaces. Below are the details:


Company has a subsidiary Chalet Hotels & Properties (Kerala) Pvt. Ltd. Although there is insignificant business in this subsidiary. (Not sure why this subsidiary was started.)

For securing the supply of renewable energy, Company has acquired 20.8% of the Equity Share Capital of Krishna Valley Power Private Limited and 26% of the Equity Share Capital of Sahyadri Renewable Energy Private Limited, being entities engaged in generation of hydro power. (Not sure how much saving does it really accrue and what is the impact on bottomline.)

Some of the down sides as presented in Q3 presentation:

  • Sluggish consumer spends
  • General economic slowdown
  • Lower banquet & MICE revenue (for CHL)

Board of Directors:



ADR (Rs.) FY18 FY19 FY20 9M
MMR 7629 8086 8149
Bengaluru 8620 8756 8995
Hyderabad 7896 8205 8547
Combined 7840 8218 8366

ADR represents revenue from room rentals at the hotel divided by total number of room nights.

Occupancy (%) FY18 FY19 FY20 9M
MMR 73% 76% 75%
Bengaluru 75% 77% 76%
Hyderabad 72% 76% 74%
Combined 73% 76% 75%

Average occupancy represents the total number of room nights sold divided by the total number of room nights available.

RevPAR FY18 FY19 FY20 9M
MMR 5543 6178 6075
Bengaluru 6447 6757 6846
Hyderabad 5694 6234 6301
Combined 5716 6283 6245

RevPAR is calculated by multiplying ADR and average occupancy available at the Hotels.

Total revenue mix is:

Total Income Mix FY19 FY20 9M
Hospitality 88% 87%
Retail & Commercial 4% 10%
Others 8% 3%

Hospitality Revenue Mix is:

Hospitality Revenue Mix FY19 FY20 9M
Room Revenue 58% 59%
Food & Beverage 33% 32%
Others 9% 9%


Particular (Rs. Mn.) FY18 FY19 FY20 9M
Total Income 8,513 10,348 7,714
EBIDTA 3,005 3,668 2,910
EBIDTA % 35.3% 35.5% 37.7%
PAT -914 -84 569

Company’s D/E has improved from 5.5 (FY18) to 1.0 (FY19). It stands at 1.0 as on 31st Dec 19.

Reduction in debt is due to equity raising (IPO).

Similarly, Debt / EBIDTA also improved from 9.1 (FY18) to 4.1 (FY19). If we prorate 9 months FY20 EBIDTA to 12 months, this ratio further improves to 3.8.

Q-on-Q movement:

Particular (Rs. Mn.) FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY20 Q1 FY20 Q2 FY20 Q3
Total Income 2,456 2,572 2,549 2,771 2,462 2,405 2,847
PAT -229 -126 141 130 137 101 331
PAT % -9% -5% 6% 5% 6% 4% 12%
EPS -1.3 -0.7 0.8 0.8 0.7 0.5 1.6

FY20 Q3 has been exceptional quarter. Improvement in revenue is directly flowing into PAT. Largely the improvement is from Retail & office business. Q-o-Q there has been more store opening at The Orb and also the improvement at Inorbit Mall Bengaluru.

Particular (Rs. Mn.) FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY20 Q1 FY20 Q2 FY20 Q3
Hospitality 2170 2075 2326 2566 2198 2046 2500
Retail & office 65 105 130 91 152 307 281

For TTM EPS of Rs. 3.6, current price of Rs. 340 is trading at PE of 94.4.

Disclosure: invested @ Rs. 328.


@santoshj thank you for the great write up.
Trying to understand the business model of Chalet hotels. It would be great if you can provide your understanding of below questions I have around Chalet Hotels.

  • How do they really make the money?
  • Do they own, build and operate these hotels themselves? do they pay royalty or share revenue with these brands like JWMarriot, WestIn, Sheraton etc?
  • Do they have any exclusive agreements with these big brands to build and operate these luxury hotels or it location by location basis?

All these properties are owned by CHL. For hotels, they have type up with operators (JW Marriot, Accor, etc) and they get a share of revenue (although I am not sure what share. Couldn’t locate these details).

For Commercial and Retail (Mall) properties, they get rental income.

If I come across any more details, I will surely post it here.


Very reassuring and positive.

The company plans on a QIP.

No more than 3 posts in a row so updating the last message -

03/4/24 QIP Succesful -

1 Like

One of the fastest-growing hotel businesses in India.


Fresh buying was seen in good numbers (Q4FY24).