Chalet Hotels (CHALET) investor relations material

Executive summary

• Q1 FY27 delivered strong performance in hospitality and commercial real estate, with robust domestic demand offsetting international softness, while consolidated revenue was impacted by lower residential handovers.

• Leisure segment outperformed, driven by rising affluence and discretionary spend, while business travel markets faced occupancy challenges due to ongoing construction and global events.

• Strategic upgrades and expansions in key assets, especially Powai and Vashi, are expected to drive future growth.

• Board approved unaudited standalone and consolidated financial results for the quarter, with Deloitte Haskins & Sells appointed as new statutory auditors for a five-year term.

• RevPAR grew 6.5% YoY, driven by an 8.5% increase in ADR, while occupancy declined by 1.2 percentage points.

Financial highlights

• Core business revenue (excluding residential) grew 10% YoY to INR 5,140 million; consolidated revenue from operations for Q1 FY27 was INR 5,122.73 million.

• EBITDA (ex-residential) rose 15% YoY to INR 2,400 million; consolidated EBITDA was INR 2,430.58 million.

• Net profit for the quarter stood at INR 861 million.

• Hospitality revenue increased 9% YoY to INR 4,185 million; hospitality EBITDA up 11% to INR 1,784 million, with margin up 92 bps to 42.6%.

• Commercial real estate revenue up 18% YoY to INR 865 million; EBITDA up 21% to INR 735 million, margin at 85%.

Outlook and guidance

• Expectation of occupancy improvement as construction and renovations conclude, targeting 60-65% stabilized occupancy in resorts and a return to 70%+ in overall portfolio.

• Planned CapEx of INR 30 billion over FY27-FY29, largely funded by internal accruals.

• Pipeline includes ~1,655 rooms under construction/planning and 0.9 msf of commercial real estate to be delivered by FY29.

• ADR and RevPAR expected to benefit from favorable demand-supply dynamics and continued infrastructure improvements.