Chalet Hotels (CHALET) Q2 24/25 earnings summary

Executive summary

• Indian hospitality sector rebounded strongly in Q2 FY25, with consolidated revenue and EBITDA both up 20% year-over-year, reflecting stable operations across hospitality, rental, and residential segments.

• Portfolio occupancy reached 73.6%, ADR rose 10%, and RevPAR grew 10.3% year-over-year.

• Strategic acquisition of an 11-acre beachfront land in Goa for a new upper-upscale resort, expected to open in three years.

• Residential sales accelerated, commanding higher average prices per square foot.

• Board approved unaudited standalone and consolidated financial results for the quarter and six months ended 30 September 2024.

Financial highlights

• Q2 FY25 consolidated revenue was INR 3.8 billion (Rs 3,832 Mn), up 20% YoY; consolidated EBITDA at INR 1.6 billion (Rs 1,556 Mn), margin 40.6%.

• Hospitality segment revenue at INR 3.4 billion (Rs 3,352 Mn, up 18% YoY), EBITDA at INR 1.4 billion (Rs 1,387 Mn, up 18%), margin at 41.4%.

• Rental and annuity revenue was INR 419 million (Rs 419 Mn, up 39% YoY), EBITDA at INR 323 million, margin at 77%.

• Net loss for Q2 FY25 was INR 1.4 billion (Rs 1,385.11 Mn), mainly due to a one-time deferred tax adjustment; adjusted PAT grew 75% YoY.

• QIP of INR 10 billion (Rs 10 Bn) raised, primarily used for debt repayment.

Outlook and guidance

• H2 expected to be robust, driven by corporate travel, MICE, weddings, and continued leasing and residential sales momentum.

• CapEx plan of INR 15 billion over the next six quarters, largely funded by internal accruals.

• Robust project pipeline includes new hotels in Goa, Delhi, Mumbai, and Bengaluru, with phased openings through FY28.

• Board authorized raising up to Rs.6,000 million via listed NCDs, subject to shareholder approval.

• International arrivals nearly back to pre-COVID levels, with 33% of Q2 room nights from foreigners.