This article first appeared on GuruFocus .
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Total Revenue:INR7.4 billion, up 94% year on year.
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EBITDA:INR3.1 billion, up 98% year on year.
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EBITDA Margin:Expanded by 75 basis points to 41.4%.
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Hospitality Revenue:INR3.8 billion, up 13% year on year.
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Commercial Real Estate Revenue:INR738 million, up 76% year on year.
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Residential Project Revenue:INR2.8 billion recognized for 55 apartments.
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Net Debt:INR20.9 billion, with an average cost of finance at 7.62%.
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Liquidity Position:INR2.9 billion at the end of the quarter.
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Interim Dividend:INR1 per share, the company's maiden dividend declaration.
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Planned CapEx:INR25 billion over the next 3 years, primarily funded through internal accruals.
Release Date: November 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Chalet Hotels Ltd ( BOM:542399 ) launched a new premium lifestyle brand, Ativa Hotels and Resorts, targeting affluent young travelers, which is expected to enhance brand value and market presence.
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The company reported a 94% year-on-year increase in total revenue to INR7.4 billion, with consolidated EBITDA growing by 98% to INR3.1 billion, indicating strong financial performance.
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Hospitality revenue increased by 13% year-on-year, driven by a 16% growth in average room rates, showcasing effective pricing strategies.
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The commercial real estate business saw a 76% year-on-year revenue growth, with EBITDA increasing by 88%, reflecting robust performance in this segment.
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Chalet Hotels Ltd ( BOM:542399 ) declared an interim dividend of INR one per share, marking its maiden dividend declaration and demonstrating a commitment to shareholder value.
Negative Points
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The company faced challenges due to rain-related disruptions and geopolitical tensions, particularly affecting travel sentiment and occupancy in some business areas.
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Occupancy rates dropped by 7 percentage points year-on-year, with overall occupancy standing at 67%, impacted by weather conditions and new inventory additions.
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The hospitality segment's EBITDA margins moderated to 40% from 41.4% last year, partly due to the ramp-up phase of newly added assets.
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The addition of new properties led to a temporary dip in occupancy, with stabilization expected to take time, affecting short-term performance.
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Leasing activity in the commercial real estate segment was muted this quarter, with ongoing discussions on key accounts delaying potential revenue growth.
Q & A Highlights
Q: Could you share any early trends and occupancy following the rebranding of Dukes to Ativa? Also, should we expect any impact on margins due to increased sales and marketing investments? A: It's early days, but the feedback has been very positive. We expect stable occupancies in the mid-60s within 3 to 4 quarters. We don't anticipate any significant change in margins due to marketing costs. (Sanjay Sethi, CEO)
Q: With the addition of new properties, do we expect occupancy to return above 70% in the second half? What should we consider as steady state occupancy levels across portfolios? A: We don't provide forward-looking numbers, but the second half is expected to be robust, and we should return to previous occupancy levels. The current dip is due to new inventory, which takes time to stabilize. (Sanjay Sethi, CEO)
Q: The lease space revenues increased only marginally this quarter. Should we interpret this as minimal change in occupancy levels at Powai and Bangalore? A: Leasing activity was muted this quarter, but we expect positive developments next quarter. We prioritize quality over pace in tenant selection. We aim to exit at INR30 crores per month rental by March. (Nitin Khanna, CFO)
Q: Could you share your thought process on Ativa's future, particularly regarding management contracts? A: Currently, Ativa is for internal use, with six assets identified for conversion. We will evaluate new assets individually. There's no immediate plan for asset-light management contracts, but Ativa provides a springboard for future opportunities. (Sanjay Sethi, CEO)
Q: How is the performance of the city-wise portfolio, particularly Mumbai and NCR, given the low ARR growth and decline? A: In Mumbai, new supply has impacted occupancy, but we've grown our market share by 3%. The second half is expected to be strong with the return of corporate and social business. NCR's performance was affected by weather and social dates, but the second half looks promising. (Shwetank Singh, CEO Designate)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
