Chalet Hotels posts revenues of Rs 164 cr for December quarter, losses at Rs 14.3 cr

New Delhi: Chalet Hotels, owner, developer and asset manager of high-end hotels has posted revenues of Rs 164 crore for the quarter ended December 31, 2021, a 98 per cent increase from the corresponding period of the previous fiscal.

The company posted losses of Rs 14.3 crore compared to Rs 31 crore in the quarter ended December 31, 2020.

The company’s hotel portfolio comprises of seven operating hotels including a hotel with a co-located serviced residence, located in the key Indian cities of Mumbai, Hyderabad, Bengaluru and Pune.

The company said its board of directors approved the change in the use of the proposed new 150 room hotel at Renaissance Complex Powai to a commercial office space. The decision was taken after evaluation of the demand dynamics for hospitality and office rental segments within the market.

The company’s project comprising of residential buildings and a commercial building for strata sale at Koramangala Bengaluru is at development approval stage and expected to be completed by financial year 2026. The commercial project at Renaissance Complex, Powai, Mumbai is on track, and scheduled to be completed by Q4 of financial year 2023. Due to change in project specification and other lockdown related delays, the completion of the commercial project at Marriott Complex, Whitefield, Bengaluru may get delayed by a quarter, from the earlier target of Q4 of financial year 2022, the company said. Its re-purposing of retail space at Whitefield Bengaluru to commercial space is underway, scheduled to be completed by Q3 of financial year 2023. The re-purposing of The Orb at Sahar Mumbai is in its leasing stage.

Chalet Hotels said it will shortly commence work on the partly built 88 rooms in Novotel Nagar Road Pune (existing 223 rooms), with a launch expected in the second half of fiscal year 2023. It said it continues to evaluate the demand dynamics to assess the opening of the new hotel in Hyderabad.

Sanjay Sethi, MD and CEO of Chalet Hotels said the third quarter saw the hospitality segment demonstrating strong recovery with segment revenue growing quarter on quarter by 55 per cent and segment EBIDTA was up 167 per cent. "Sweating of real estate assets in our balance sheet and repurposing underperforming assets are expected to be P&L accretive. The impact from the third wave has been lower and the pick-up is likely to be faster than the earlier waves giving visibility of full recovery in the near future. Throughout these challenging times, Chalet has diligently focused on its core business strategy of prudent capital and asset management and ESG commitments, paving the way for long term returns," he added.