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K Raheja Corp’s Chalet Hotels sees growth led by both occupancy and rates

Mumbai-based Chalet Hotels is looking at a blend of occupancy and rate to drive growth. Sanjay Sethi, Managing Director and CEO of the international high-end hotel chain pointed out the six percentage point increase in occupancy rates to 71% in the last quarter. Rates for existing hotel rooms have risen by 11% due to recent inventory expansions, he said.
Sethi sees margin exceeding 45% in the second half of the financial year 2024 (H2FY24). In terms of revenue, he noted, the second half makes up for 55% of the annual numbers.
Chalet Hotels is in the process of developing approximately 1,000 more rooms, which are currently at various stages, across the country, the MD and CEO had told CNBC-TV18 in an interview in August 2023.
The premium hotel brand currently manages upscale hotels in Mumbai, Hyderabad, and Bengaluru under renowned names like JW Marriott, Westin, Marriott, Marriott Executive Apartments, and Renaissance.
Sethi highlighted that new hotel additions would contribute to incremental revenues and earnings before interest, taxes, depreciation, and amortisation (EBITDA).
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While acknowledging that new hotels might initially exhibit slower EBITDA in the first one or two quarters, Sethi expects them to enhance EBITDA margins progressively.

Source: CNBC