Copyright thehindubusinessline
Chalet Hotels expects robust growth in second half of FY26 with more auspicious wedding dates and stabilisation of business after recent addition of inventory. This is expected to restore overall occupancy to over 70 per cent and increase average room rates especially in its resorts. The K Raheja Corp-owned hotel chain posted a consolidated net profit of ₹154 crore in second quarter of FY26 compared to a loss in same period last year. Consolidated revenue stood at ₹743 crore, a growth of 94 per cent on a year-on-year(y-o-y) basis. Revenue of its core hospitality and commercial real estate business grew 20 per cent to ₹460 crore. However performance of individual properties came under pressure limiting growth. While the resort business was impacted due to adverse weather conditions, shifting of auspicious dates to third quarter and fewer long weekends, overall occupancy of the hotel portfolio dropped 7 percentage points to 66.7 per cent due to addition of inventory. The company’s JW Marriot hotel at Mumbai airport also faced competitive pressure due to opening of new hotels in its vicinity. Chalet management however said the JW Marriot hotel has performed well and registered 3 per cent growth in market share. In a post result investor call, Chalet Hotel’s outgoing MD& CEO Sanjay Sethi said business is expected to be strong in the second half of FY26. He said occupancy should normalise very quickly and added there was a temporary blip due to addition of 166 rooms in Bengaluru and Khandala properties. Last month the company unveiled a new brand — Athiva— targeting affluent young travellers. The Dukes Retreat in Khandala has already transitioned to the new brand and five other operating and under construction properties are expected to follow suit. Sethi expects Athiva hotel in Khandala to deliver stable occupancy in mid-60s and high margins in coming 3-4 quarters. Executive director Shwetank Singh who takes over as MD & CEO from next February said “business should start rolling back” in the second half of FY26 contributing to higher margins. Published on November 6, 2025
