Chalet Hotels announced its unaudited financial results for the quarter and six months ended September 30, 2025. The company also launched its new brand, Athiva Hotels & Resorts and declared its maiden interim dividend of INR 1 per share. Consolidated revenue surged 94% year-on-year to INR7.4 billion with EBITDA rising 98%. Excluding residential business, core revenue grew 20% and EBITDA by 25%.
Financial Performance
In Q2 FY26, Chalet Hotels reported strong financial results. Consolidated revenue reached INR7.4 billion, a 94% year-on-year increase. EBITDA grew by 98%, with margins expanding to 41.4%. These figures include revenue from residential apartments at Vivarea, Koramangala, Bengaluru, where 55 apartments were handed over.
Excluding the residential project, the core hospitality and commercial business showed strong growth with revenues up 20% year-on-year to INR4.6 billion and EBITDA up 25%. This translates to an EBITDA of INR2 billion with margin expansion of 144 bps to 43.4%.
Hospitality and Real Estate Segments
The hospitality sector recorded revenue of INR3.8 billion, a 13% year-on-year increase, driven by a 16% growth in average room rates. RevPAR increased by 5% to INR8,115, while ADRs jumped 16% to INR12,170. Occupancy stood at 67%.
Commercial real estate revenue grew significantly by 76% to INR738 million, with EBITDA increasing by 88% to INR607 million. The EBITDA margin for this segment was 82.3%. Occupancy across the commercial real estate portfolio is at 77%.
Residential Project
During the quarter, 7 residential units were sold at an average rate of INR21,300 per square foot. Cash flows of INR1.3 billion were generated from collections. Cumulatively, 314 units have been sold out of a total inventory of 321.
Capital Management and Debt
The company repaid INR2 billion towards preference share capital from promoters. Net debt stood at INR20.9 billion, with the average cost of finance contracting by 38 bps quarter-on-quarter to 7.62%. Liquidity position remained healthy at INR2.9 billion at the end of the quarter.
Additionally, INR1 billion was raised through the maiden issuance of commercial paper at a fixed coupon of 6.1%.
New Brand Launch: Athiva
Chalet Hotels launched Athiva Hotels & Resorts, a premium lifestyle brand. The Dukes Retreat in Khandala has been relaunched as Athiva Resorts & Spa Khandala, featuring 147 rooms. Five additional properties with 900 keys will transition to Athiva over the next few years.
ESG Initiatives
The company’s ESG initiative is now branded as Parivartan. 100% electric vehicles and electric vehicle charging stations have been implemented in all operating assets as of September 2025.
Interim Dividend
An interim dividend of INR 1 per share has been declared.
Source: BSE
