Chalet Hotels Limited reports best-ever Q1 revenue

BW Online Bureau Jul 29, 2023

Chalet Hotels Limited announces its results for the first quarter of the fiscal year 2024 ending June 30, 2023.

Key Highlights for Q1FY24:

• Total Income at INR 3.1 bn, up 21% as compared to Q1FY23

• Adjusted EBITDA at INR 1.3 bn, up 24% as compared to Q1FY23

• Hospitality Segment Performance:

o Revenue at INR 2.8 bn, up by 23% from Q1FY23

o ARR at INR 10,317, up by 38% over Q1FY23

o Occupancy was at 70%

o RevPAR improved by 24% YoY to INR 7,182

o Adjusted EBITDA was at INR 1.2 billion, up by 26% from Q1FY23

Other Highlights:

• ~68% of the total electricity for hotel portfolio sourced from renewable resources in Q1FY24.

• Newly launched The Westin Hyderabad HITEC City is completely sold out from day 1, operated by an all-women team and is run on 100% Green Power.

Consolidated Performance for Q1FY24

Particulars	Q1FY24	Q1FY23	YoY %	Q4FY23	QoQ %	FY23
Total Income	3,146	2,599	21%	3,458	(9%)	11,780
EBITDA	1,136	1,088	4%	1,603	(29%)	5,023
Margin	36.1%	41.9%	(6pp)	46.4%	(10pp)	42.6%
Adj. EBITDA*	1,299	1,052	24%	1,603	(19%)	4,760
Adj. Margin*	41.3%	41.2%	10bps	46.3%	(5pp)	41.3%
PAT	887	286	3x	366	2.4x	1,833
EPS (Rs.)	4.32^	1.39^	3x	1.79^	2.4x	8.94

(INR million)

Segmental Performance for Q1FY24

Particulars	Q1FY24	Q1FY23	YoY %	Q4FY23	QoQ %	FY23
HOSPITALITY
Occupancy	70%	78%	(8pp)	74%	(4pp)	72%
Average Room Rate (ARR)	10,317	7,457	38%	11,304	(9%)	9,169
RevPAR	7,182	5,794	24%	8,363	(14%)	6,605
Revenue	2,822	2,298	23%	3,097	(9%)	10,281
EBITDA	1,141	950	20%	1,473	(23%)	4,318
Margin	40.4%	41.4%	(1pp)	47.6%	(7pp)	42.0%
Adj. EBITDA	1,198*	950	26%	1473	(19%)	4,318
Adj. Margin	42.5%*	41.4%	110bps	47.6%	(5pp)	42.0%
RENTAL / ANNUITY
Revenue	285	231	23%	281	(1%)	1000
EBITDA	227	183	24%	260	(13%)	838

(INR million)

GST Investigation Department have identified certain matters relating to input tax credit pertaining to the period July 2017 to FY 2023, which the Authority believes are ineligible for such claims. Accordingly, the Company has made payment with respect to the same. The business operations of the Company continue as usual and are not impacted.

Development Pipeline Updates:

CIGNUS POWAI Tower I at Westin Complex, Powai is in its final stages of completion.
At the CIGNUS Whitefield Bangalore® Tower I, tenants are moving in by August 2023.
CIGNUS Whitefield Bangalore® Tower II is in its final stages of completion.
88 new rooms at Novotel Pune are ready and awaiting OC to commence commercial usage.
We are adding ~130 guest rooms at Bengaluru Marriott Hotel Whitefield, designs are in final stages.
The residential project, Raheja Vivarea, at Koramangala, Bengaluru is progressing well and sales for the project is expected to commence within the calendar year 2023.

Speaking on the financial results, Sanjay Sethi, MD & CEO, Chalet Hotels Limited, said, “ARRs have been holding strong with 38% growth year-on-year, a key business performance indicator for the Company. This quarter also witnessed the launch of our first all-women-run hotel, ‘The Westin Hyderabad HITEC City’, a small contribution towards gender equality and empowerment in the hospitality industry. India's strong economic indicators combined with a robust demand-supply environment and our ongoing capex initiatives, bode well for the future of Chalet Hotels.”