Chalet Hotels - Annual Report Summary 2023
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About the company
Chalet Hotels Limited, the hospitality arm of one of India’s leading real estate development groups, viz. K Raheja Corp is an owner, developer, asset manager and operator of hotels under globally leading hospitality brands and resorts in the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Hyderabad, Bengaluru, Pune and Lonavala.
The Company has partnered with some of the world’s leading luxury hotel operating brands – JW Mariott, The Westin Mumbai Powai Lake, The Westin Hyderabad Mindspace, Four Points by Sheraton, Novotel, etc.
Chalet operates a hotel under its own brand - The Dukes Retreat, Lonavala.
The Company also uses its own/licensed brands for its commercial complexes - The Orb and CIGNUS Whitefield Bangalore® Tower I.
Business Segments with Details
2022-23 Highlights of Different Sectors Of The Business
Highlights: FY 2023
No. Of Hotels: 9
Total Room Nights Sold: 6,71,528
No. Of Keys: 2,802
Mixed-used under Rental and Annuity Segment: 1.2 mn sqft.
March 2023: Chalet Hotels featured in the list of India’s Great mid-size Workplaces for the fourth consecutive year.
2,544 Associates (includes full-time and contractual employees across all verticals)
Q4FY2023:
Highest-ever Average daily Rate (ADR): Rs. 11,304.
Highest-ever Revenue per Available Room (RevPAR): Rs.8,363.
Four Points By Sheraton Navi Mumbai, Vashi:
Recognized amongst the ‘Top Organizations with Innovative HR Practices’ by The Times Ascent 21 st edition of Asia pacific HRM Congress
Awarded ‘The Most Iconic Business Hotel’ at the Indian Achievers Awards FY 2023
Recognized as the ‘Cleanest Hotel in Navi Mumbai’ in ‘Swachh Survekshan 2022’ as part of the Navi Mumbai Swachh Bharat Mission
Received Indian Achievers’ Award for the ‘Most Iconic Business Hotel’.
The Westin Hyderabad Mindspace:
Awarded the ‘Best 5-Star Hotel in Telangana State’ by the Department of Tourism Government of Telangana on World Tourism Day.
Listed among the Best Business Hotels in Hyderabad published by CNBC.
Nominated for six categories and awarded Kangan (Best North Indian: Premium Dining) and Daily Treats (Best Bakery: Premium Dining) at The Times Food & Nightlife Awards 2023.
The Heavenly Spa by Westin was awarded the ‘Best New Resort Spa’ at the Global Spa Awards 2022.
JW Marriott Mumbai Sahar:
Recognized among the “Best Business Hotels” in the Asia-pacific region, ranking among the top five business hotels in Mumbai by CNBC Travel.
Awarded the ‘Best Luxury Conference & Convention Centre’ at the 17th Hospitality India Travel Awards.
The JW Café was recognized as the Best Multicuisine Restaurant at the 2022 ET Hospitality World Restaurants & Nightlife awards.
Chalet Hotels embarked on two strategic initiatives:
Entering into a long-term license agreement for the development of a ~400-room Hotel at Terminal 3 at Delhi International Airport.
The development of the Hotel at New Delhi is being undertaken through a Special Purpose Vehicle set up for the purpose, viz. Chalet Airport Hotel Private Limited, which is a Wholly Owned Subsidiary of the Company, and will give the Company an entry into the North India market.
This ~400-room luxury hotel with state-of-the-art amenities will be branded under the ‘Taj.’
The hotel is expected to be commissioned in 2025-26.
The hotel will be on a cold shell lease from DIAL (Delhi International Airport Limited) until 2066.
Acquisition of ‘The Dukes Retreat’ at Lonavala, the Company’s maiden leisure property.
This 80-key leisure property was purchased through acquisition of shares of The Dukes Retreat Private Limited and Sonmil Industries Private Limited for a cumulative Enterprise Value of Rs. 1,330 million.
Chalet will commence renovation, upgradation, and inventory addition on this property over the next few months.
Property Launches / Renovations:
Renovation of 121 rooms and the banquet facilities at “The Westin Mumbai Powai Lake”
Expansion work on 88 rooms at Novotel Pune Nagar Road
Construction of the commercial tower at Whitefield, viz. CIGNUS Whitefield Bangalore®- Tower 1 has been completed and three floors have been handed over to the tenants for fit-out;
Handover at CIGNUS Whitefield Bangalore® Tower 2, the re-purposed mall at Whitefield Bengaluru, is expected to commence in Q2 FY 2024.
Work on the 168-room hotel i.e. The Westin Hyderabad, HITEC City has been completed and the Hotel has commenced operations from June 04, 2023.
Opportunities
Hospitality
Conversion of the commercial centre (erstwhile Accenture Learning Centre) at Bengaluru to Hotel rooms is in final stages of designing and approval as on the date of this Report.
The detailed design and plans are being worked upon for the construction of a 5-star Hotel at Terminal 3, Delhi International Airport having ~400 rooms. This Hotel is expected to be completed in FY2026.
Rental & Annuity
The Company had repurposed the land use of the earlier proposed 150-room hotel at The Westin Complex, Powai to a Commercial office space with a potential leasable area of ~0.75 million sq. ft. The Project is at the design and approval stage.
The superstructure for the commercial project at Powai has been completed and internal work is being carried out towards receipt of the Occupancy Certificate. The premises are expected to be ready for handover to tenants in Q2 FY2024.
Residential Project – Koramangala, Bengaluru
The Company has received all approvals to recommence work in respect of the residential project at Koramangala, Bengaluru and work is in full swing. Sales are expected to commence in Q2 FY2024. The Company will also be developing a Commercial building for strata sale on the same land parcel.
Threats
Talent management: Talent management is one of the greatest risks for the hospitality industry in the post-COVID era. Being a people business, attracting and retaining talent is critical and the baseline for the success.
Data Privacy and Cyber Security: The Company’s systems and proprietary data is stored electronically, including guests’ sensitive personal and financial information, which may be vulnerable to computer viruses, cybercrime, computer hacking and similar disruptions from unauthorized tampering.
Climate change: Business operations are highly dependent on the availability of energy.
Responsible Procurement: Any disruption in the supply chain can have a significant impact on operations and customer service.
Media interactions this week
Intelsense Insights
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