Chalet Hotels Bets On Business And Leisure Travel To Drive Double-Digit Growth In H2

Chalet Hotels Ltd. is poised to achieve double-digit growth in its revenue per available room for the second half of the year, driven by robust performance in both the business and leisure travel segments, the company’s Managing Director and Chief Executive Officer Sanjay Sethi has said.

In Q2, the company’s RevPAR grew 10% YoY to Rs 775.6 crore from Rs 703.4 crore in the corresponding quarter of the last fiscal.

Talking to NDTV Profit, Sethi claimed that Chalet Hotels will “significantly” outperform its FY24 H2 RevPAR.

“I'm comfortable with stating that a double-digit RevPAR growth over the same period last year is pretty much on the cards. It was a good H2 last year. So, we are going to outperform that significantly,” he said.

The second half of the current fiscal is going to witness a comfortable double-digit growth, he noted.

“I'm pretty confident that this season looks very strong, both on the leisure and the business travel side. Both of them would be supported by MICE (Meetings, Incentives, Conferences and Exhibitions), and the wedding businesses segments. They are clearly going to be very strong,” he said.

“So far, the trends for H2 look like (we will have a) comfortable double-digit growth,” Sethi added.

The top executive noted that H2 is the “primary season” for corporate travellers.

“October to March is the season for, especially, international business travellers to come into India. That's going to drive the growth. Weddings and MICE are going to be big-ticket items,” he explained.

Chalet Hotels has announced that by 2027, it will have a total of over 4,000 keys. Sethi said that the company will “probably” add more keys to its pipeline by then.

“Expect us to continuously grow. Our internal target in the next three or four quarters is to get to the pipeline plus operating hotels of 5,000 rooms, which means we should be able to add, through business development activities, another 1,000 rooms to the portfolio. Our balance sheet allows us that opportunity. We'd like to leverage it,” he said.

Chalet Hotels Ltd. is trading 1.41% lower at Rs 915.50 apiece on the NSE. Meanwhile, benchmark Nifty 50 was up 0.11% at 24,645.45 points.