Chalet Hotels improves its revenue per available room in the third quarter
NEW DELHI : Chalet Hotels Ltd – owner, developer and asset manager of hotels like Lakeside Chalet, Renaissance Mumbai Convention Center Hotel, etc. – announced its results for the third quarter as well as for the nine months ending in December 2021 at ₹165.7 crore.
The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations was ₹41.9 crores in the quarter ended December, compared to the second quarter ended September 30, 2021.
Revenue growth for the period, it said, was 54% from last quarter and REVPAR or revenue per available room for the third quarter was ₹3,035 up 40% and the occupancy rate was 60%. RevPAR is calculated by multiplying a hotel’s average daily room rate (ADR) by its occupancy rate.
The company said its board also approved the change of use of the proposed new 150-room hotel at the Renaissance Mumbai Convention Center Hotel in Powai to commercial office space. The company is renaming the Renaissance Mumbai Convention Center Hotel in Powai to Westin. In addition, the 150-room hotel proposed in the Renaissance complex is transformed into commercial office space, the basis of the dynamic demand for the office rental segment. The decision, he said, was made after an assessment of demand dynamics for the hotel and office rental segments in the market.
The Company’s hotel portfolio also includes JW Marriott Mumbai Sahar, Four Points by Sheraton Navi Mumbai; The Westin Hyderabad Mindspace and the Bengaluru Marriott Hotel Whitefield.
Due to changes in project specifications and other lockdown-related delays, completion of the retail project at Marriott Complex, Whitefield, Bengaluru is likely to be delayed by a quarter, compared to the previous target in Q4FY22.
Sanjay Sethi, MD and Managing Director of the company, said the third quarter saw the hospitality segment demonstrate a strong recovery with segment revenue growing 55% QoQ and segment EBIDTA up 167%.
“The impact of the third wave has been weaker and the recovery is expected to be faster than previous waves, giving the visibility of a full recovery in the near future. Throughout these difficult times, we have focused on our core business strategy of prudent capital and asset management and environmental, social and governance commitments, paving the way for long-term returns.”
According to the India Brand Equity Foundation, a government export promotion agency, India’s hotel market, including domestic, inbound and outbound, was estimated at $32 billion in FY20 and is expected to reach $52 billion. by FY27, driven by growing traveler demand and continued efforts by travel agents to energize the market.
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