'Wedding Season, Surge In Travel': How Is Chalet Hotels Eyeing A Rebound In H2FY26?

Chalet Hotels expects strong performance in the second half of the current financial year, fuelled by the upcoming wedding season and a rebound in demand. The second half of any financial year has been traditionally more rewarding for the company as it accounts for 55% of overall business compared to 45% in the first half, according to Shwetank Singh, Executive Director, Chalet Hotels.  

This seasonal strength is set to be amplified by deferred auspicious wedding dates and a strong "business on books" for November and February, typically the highest-performing months.

“Seasonality in hospitality is about 45:55 with 45% in the first half and 55% in the second half. Typically, the weather helps you. Auspicious dates are moving into the second half as well.  There is also business on books that we see in November. Typically, November and February are the two highest performing ones,” he said during a conversation with NDTV Profit on Thursday.

With a resurgence in international travel, the company also expects it to contribute significantly to the business in H2FY26. "Direct flights are coming in from international destinations. And therefore, the expat movement is coming back to pre-pandemic levels," said Singh.

He highlighted that this specific traveller segment is highly valuable, as "not only do they give you better ADRs (Average Daily Rates), but they also have much better F&B (Food and Beverage) consumptions."

Addressing the company's capital expenditure, Singh confirmed the capex agenda was robust and funding was not a concern. He revealed the company was in a "great situation" where "debt servicing is happening purely from the lease rental that we are getting," effectively freeing up all cash from the hospitality business for growth.

With current debt levels at approximately Rs 2,100 crore, he stated the company has "enough headroom to grow," operating at a comfortable 2.8 debt-to-Ebitda multiple, well below the target ceiling of 3.5.

Portfolio occupancy for the company declined around 7% year-on-year (YoY) in Q2FY26. He emphasised this was not uniform across segments. Additionally, the absence of auspicious dates for weddings in the quarter (compared to four or five last year) and fewer extended weekends further hit resort bookings.