Chalet Hotels Limited has signed two binding Memorandums of Understanding (MoUs) for long-term lease agreements to secure premises for new hotel developments. These agreements are with two SPVs of Mindspace Business Parks REIT, covering locations in Pune and Hyderabad. The Pune property will feature 231 rooms under the ‘Upper Upscale’ category and the ‘ATHIVA®’ brand, with an expected investment of Rs.10.8 Million per key by FY2030-31. The Hyderabad property will add 150 rooms under the same brand and positioning, requiring an investment of Rs.13.5 Million per key by FY2028-29. This move aligns with the company’s investment and expansion strategy.
Chalet Hotels Expands Footprint with New Lease Agreements
Chalet Hotels Limited has announced the signing of two significant binding Memorandums of Understanding (MoUs). These agreements are for long-term lease arrangements of premises with two special purpose vehicles (SPVs) of Mindspace Business Parks REIT. The primary objective is to facilitate the development and operation of new hotel properties, marking a strategic expansion for the company.
Pune Property Details
The first MoU pertains to a property in Pune. The lease arrangement is for a ‘Grey Shell’ property, which includes the structure but requires the addition of façade and high-side MEP (Mechanical, Electrical, and Plumbing) systems. This location is slated to house 231 rooms and will be positioned and branded as ‘Upper Upscale’ under the company’s ‘ATHIVA®’ brand. The estimated investment required for the fit-out is Rs.10.8 Million per key, with the capacity expected to be added by FY2030-31.
Hyderabad Property Details
The second MoU concerns a property in Hyderabad. This lease is for a ‘Warm Shell’ premise, which includes the structure, façade, and high-side MEP, with the potential conversion of an existing office building. This site will accommodate 150 rooms, also to be positioned and branded as ‘Upper Upscale’ under the ‘ATHIVA®’ brand. The investment required per key for this property is estimated at Rs.13.5 Million, with the capacity expected to be added by FY2028-29.
Financing and Strategic Alignment
The investment required for these projects will be financed through a combination of internal accruals and debt. Chalet Hotels views these developments as being in line with its established investment and expansion strategy, aiming to bolster its portfolio and market presence in key urban centers.
Source: BSE
