Chalet Hotels (CHALET) Q3 24/25 earnings summary

Executive summary

• Achieved best-ever quarter with consolidated revenue up 22% year-over-year to INR 4.6 billion and EBITDA up 22% to INR 2.1 billion, with a margin of 45.5%.

• Hospitality segment saw 18% growth in average room rates and steady 70% occupancy, driving a 16% RevPAR increase.

• Annuity portfolio revenue surged 92% year-over-year to INR 577 million, with significant leasing momentum and 400,000 sq ft of new leases confirmed.

• Residential segment maintained strong sales velocity, selling 18 apartments at an average rate of INR 22,000 per sq ft.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2024, with results reviewed by statutory auditors and published as per regulatory requirements.

Financial highlights

• Consolidated revenue for the quarter reached INR 4.6 billion, up 22% year-over-year; EBITDA at INR 2.1 billion, up 23% year-over-year, with a margin of 45.5%.

• Consolidated PBT was INR 1.2 billion versus 0.9 billion last year; PAT was INR 965 million, up 37% year-over-year.

• 9MFY25 total income grew 20% YoY to INR 12.17 billion; EBITDA for 9MFY25 at INR 5.15 billion, up 24% YoY.

• Hospitality division revenue grew 17% to INR 4 billion, with room revenue up 21%.

• Rental & Annuity: Q3FY25 revenue at INR 577 million, EBITDA at INR 455 million (79% margin); 2.4 msf leased area as of Dec'24.

Outlook and guidance

• Management expects Q4 performance to further augment nine-month EBITDA and maintains confidence in double-digit RevPAR growth.

• Strong pipeline with ~1,175 new rooms and 0.9 msf of leasable area under development across key cities.

• Demand expected to continue outpacing supply, supported by improving air traffic and macroeconomic growth.

• CapEx plan of INR 20 billion over the next three years, largely funded through internal accruals.