• Consolidated Revenue: INR4.6 billion, a 22% year-on-year growth.

• Consolidated EBITDA: INR2.1 billion, a 22% year-on-year increase.

• EBITDA Margin: 45.5% for the quarter.

• Hospitality Segment Revenue: INR4 billion, a 17% growth.

• Average Room Rate (ADR): Increased by 18% to nearly INR13,000.

• Occupancy Rate: Stable at 70%.

• RevPAR Growth: 16% increase to over INR9,000.

• Annuity Portfolio Revenue: INR577 million, a 92% year-on-year surge.

• Residential Real Estate Sales: 18 apartments sold at an average rate of INR22,000 per square foot.

• Consolidated PBT: INR1.2 billion, up from INR0.9 billion in the same quarter last year.

• Consolidated PAT: INR965 million, a 37% increase from INR706 million last year.

• Net Debt: INR15.8 billion as of December 31.

• Average Cost of Finance: 8.53%, a reduction of 34 basis points from March '24.

• CapEx and Land Acquisitions: INR4.8 billion spent during the year to date.

• Warning! GuruFocus has detected 2 Warning Sign with BOM:542399.

Release Date: January 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Chalet Hotels Ltd (BOM:542399) reported its best-ever quarter with consolidated revenue growing 22% year on year to INR4.6 billion.

• The company achieved a strong EBITDA margin of 45.5%, with consolidated EBITDA rising 22% year on year to INR2.1 billion.

• The hospitality segment saw an 18% increase in average room rates and a 16% increase in RevPAR, with steady occupancy at 70%.

• The annuity portfolio revenue surged 92% year on year to INR577 million, with significant leasing momentum of an additional 400,000 square feet.

• Chalet Hotels Ltd (BOM:542399) earned the Great Place to Work certification for the sixth consecutive year, highlighting its commitment to a culture of excellence.

Negative Points

• The company experienced delays in the completion timeline for The Dukes Retreat and renovations at Four Points by Sheraton Navi Mumbai.

• Despite strong performance, the MMR market RevPAR growth was only 6-7%, lower than peers who reported 12-14% growth.

• The company's net debt stood at INR15.8 billion as of December 31, with a planned capital expenditure of INR20 billion over the next three years.

• The finance cost increased to INR45 crore in Q3, up from INR30 crore in the previous quarters, due to interest post-OC being charged to P&L.

• The company faces potential competition from new hotel supply, such as the upcoming Fairmont Hotel in Mumbai, which could impact market dynamics.

Q & A Highlights

Q: Could you explain the reasons behind the lower RevPAR growth in the Mumbai Metropolitan Region compared to peers, and the expected impact of the upcoming Fairmont Hotel? A: Sanjay Sethi, CEO, explained that the RevPAR growth of 6-7% in MMR was driven by an ADR strategy, letting go of low-paying business for long-term benefits. The Fairmont Hotel's opening is expected to bring competition, but Chalet Hotels is confident in maintaining its premium position due to its partnership with Marriott and strong distribution and loyalty programs.