Chalet Hotels Limited has announced the strategic addition of two new hotel developments to its pipeline, operating under its brand ATHIVA®. These properties will add 150 keys in Hyderabad and 231 keys in Pune, consolidating Chalet’s presence in these major commercial hubs. The projects will be leased from SPVs of Mindspace Business Parks REIT under a capital-efficient model, deferring CAPEX to a later development stage and expediting time-to-market.
Chalet Hotels Expands Growth Pipeline with New ATHIVA® Developments
Chalet Hotels Limited (Chalet) has announced the strategic addition of two new hotel developments to its pipeline, set to operate under its own brand, ATHIVA®. These new properties will introduce 150 keys in Hyderabad and 231 keys in Pune, enhancing Chalet’s presence in two of India’s most significant commercial hubs and accelerating ATHIVA®’s growth as a Pan-India premium lifestyle hospitality brand.
Capital-Efficient Lease Model
The new hotel projects will be leased from Special Purpose Vehicles (SPVs) of Mindspace Business Parks REIT (Mindspace REIT) under long-term lease arrangements. For the Hyderabad hotel, an existing building will be repurposed. In Pune, Mindspace REIT will develop the building structure, with Chalet managing the interior fit-outs. This approach ensures Chalet’s capital expenditure is deferred to the latter part of the development cycle, aligning with the company’s strategy of embedding hospitality assets within large-scale business parks. This model mitigates site-acquisition risks and expedites time-to-market.
Strategic Importance of New Developments
The Hyderabad hotel, an ATHIVA® Upper-Upscale property in the Financial District, will feature 150 keys and 3 F&B units. Its strategic importance lies in its location within a fast-growing commercial hub with strong infrastructure and a high concentration of GCCs. This marks Chalet’s 4th hotel in Hyderabad. The Pune hotel, also an ATHIVA® Upper-Upscale property in the Business District, will offer 231 keys and 3 F&B units. Its strategic importance stems from its location in a rapidly growing market driven by GCCs, MICE, global HQ visits, and extended corporate stays, making it Chalet’s 2nd hotel in Pune.
Financial and Timeline Details
The fit-out cost for the Hyderabad hotel is estimated at Rs 13.5 million per key, with a launch timeline projected for FY 2029. Capex for this project will be incurred later in the development cycle. For the Pune hotel, the fit-out cost is Rs 10.8 million per key, with a launch timeline expected by FY 2031, and capex also deferred to a later stage.
Total Inventory Growth
These additions bring Chalet’s total inventory, including the pipeline of approximately 2,036 keys, close to 5,500 keys, highlighting the company’s growth trajectory. Shwetank Singh, MD & CEO of Chalet Hotels, stated that these developments consolidate the company’s position in key markets and accelerate the growth of its in-house brand, Athiva®.
Source: BSE
