Chalet Hotels Limited — Investor Meet, 04-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

1. **Financial Performance:** Chalet Hotels Limited reported a robust consolidated revenue of INR 4.6 billion for the quarter, marking a 22% year-on-year growth. The consolidated EBITDA increased by 23% to INR 2.1 billion, resulting in a strong EBITDA margin of 45.5%. Profit After Tax (PAT) rose significantly by 37% to INR 965 million. Notably, the hospitality segment saw average room rates (ADR) rise by 18% to approximately INR 13,000, with a revenue per available room (RevPAR) growth of 16%.

2. **Future Outlook and Growth Drivers:** The management highlighted optimism for sustained growth driven by new airport openings in Mumbai and Delhi, which are expected to enhance passenger capacity and travel demand. Additional growth avenues include continued focus on corporate travel, MICE segments, and leisure markets.

3. **Order Book and Operational Updates:** The company achieved substantial leasing momentum with 400,000 square feet leased in the quarter, raising total leased area to 1.6 million square feet. The phased opening of The Dukes Retreat is progressing with 73 rooms now operational.

4. **Analyst Q&A Insights:**

- **Revenue and Profitability:** Analysts sought clarification on MMR market performance, where Chalet reported a RevPAR growth of about 6% compared to higher figures from peers. Management attributed this to a strategic shift towards higher ADRs, even amidst new competition.

- **Market Position and Competitive Landscape:** Management expressed confidence in continuing to maintain market leadership despite new entrants, reinforcing its strong alliances with Marriott.

- **Operational Challenges or Risks:** Questions regarding potential impacts from increased competition were addressed with management showcasing confidence in their positioning and demand scenarios.

- **Capex and Capital Allocation:** The company plans a capex of INR 20 billion over the next three years, primarily funded through internal accruals, with a focus on enhancing growth prospects.

5. **Market or Regulatory Updates:** Significant infrastructure developments, such as the new airports, are expected to boost overall hospitality demand, providing a favorable outlook for the sector.

6. **Strategic Focus Areas:** The management emphasized innovation and operational excellence, signaling a commitment to enhancing guest experiences and competitive positioning.

7. **Investor Insight:** Given Chalet's strong financial health, growth trajectory supported by strategic initiatives, and management's positive outlook, it positions itself favorably for potential investor interest. Current trends suggest maintaining a 'buy' position as the company is well-placed to leverage upcoming market opportunities.