Chalet Hotels reported a strong Q3 FY26, with consolidated revenue growing 27% YoY to INR 5,892 million and EBITDA increasing 29% YoY to INR 2,726 million, expanding the margin to 46.3%. Hospitality RevPAR grew close to 12%, driven by 16% ADR growth. The company is confident about the positive industry macros, including robust domestic leisure travel and recovery in business travel, underpinning future growth across its portfolio.
Chalet Hotels Q3 FY26 Earnings Summary
Chalet Hotels announced its Unaudited Financial Results for the quarter and nine months ended December 31, 2025, highlighting robust performance across its Hospitality and Commercial Real Estate (CRE) segments, supported by strong industry tailwinds.
Consolidated Financial Performance
For the quarter, Chalet Hotels delivered substantial growth:
- Consolidated Revenue grew 27% year-on-year to INR 5,892 million.
- EBITDA increased 29% year-on-year to INR 2,726 million.
- EBITDA margin expanded by 76 basis points to 46.3% (including residential income).
- Excluding residential business, revenue grew 23% YoY to INR 5,726 million, with EBITDA margin at 46.9% (up 14 bps YoY).
The company also noted a one-off impact of INR 10 million on the Profit and Loss account due to higher provisions taken following the implementation of new Labour Codes.
Hospitality Segment Deep Dive
The core hospitality business showcased strong operational momentum:
- Hospitality revenue rose 23% YoY to INR 4,913 million.
- Overall RevPAR growth was close to 12%, underpinned by a 16% growth in ADRs.
- Excluding The Westin Resort & Spa, Himalayas, RevPAR growth was up 10%.
Shwetank Singh, MD & CEO, attributed this success to strong domestic travel demand, rising income levels, and improved infrastructure. The occupancy dip of 230 basis points YoY was linked to temporary factors like new room stabilization in Bangalore (129 new keys) and the initial ramp-up of Athiva, Khandala (100 rooms operational).
Key Asset Updates
Several portfolio transitions and updates were shared:
- The NCR property has been rebranded from Courtyard by Marriott Aravali Resort to Aravali Marriott Resort & Spa, including upgrades to rooms and new facilities.
- Athiva, Khandala (launched in Q3), saw 5 full sold-out days in its first 45 days. The Vashi hotel is expected to be rebranded as Athiva in Q4 FY’26.
- The company was certified by Great Place to Work for the seventh consecutive year, and the CIGNUS Whitefield Tower II received LEED Platinum certification.
Commercial Real Estate (CRE) & Residential Update
The CRE segment continued its high-margin trajectory:
- CRE revenue rose 29% YoY to INR 744 million, with an EBITDA margin of 83.5%.
- Occupancy across the CRE portfolio stands at 83%, with Powai expected to exceed 90% soon.
- In the residential project (Koramangala), 3 units were sold in Q3 at an average of INR 20,500 per square foot.
Project Pipeline and Capital Allocation
Nitin Khanna, CFO, detailed the company’s financial footing and future plans:
- Net debt stood at INR 20 billion, with the average cost of finance decreasing to 7.48%. Liquidity stood at INR 3.8 billion.
- The company raised INR 1 billion via commercial paper rated A1+ by CRISIL.
- Planned Capex of around INR 25 billion is set for FY ’27 to FY ’29, primarily funded through internal accruals.
Key Project Timelines
Updates on major developments:
- CIGNUS II, Powai: On track for an FY ’27 launch.
- Taj Project (Delhi Airport): Revised timelines target a partial launch by Q4 FY ’27 due to pollution-led stoppages.
- Hyatt Regency Airoli: Environmental clearances received; construction expected to take about 36 months post-approval for the hotel component (starting 26th floor onwards).
- Goa Resort: Due diligence is ongoing; the asset requires extensive refurbishment.
Q&A Insights
Key insights gathered during the Q&A included confirmation that the rebranding of Aravali Resort to Marriott is expected to provide an upside in ADR position over the next 2 to 3 quarters. Regarding the Goa market, the management expects a trend reversal starting this quarter onwards, despite current industry softness.
Source: BSE
