Chalet Hotels slides after Q1 PAT tanks 58% YoY to Rs 86 cr

Profit before tax (PBT) fell 50.66% year on year to Rs 132.53 crore in Q1 FY27. The company reported exceptional items of Rs 9.84 crore in Q1 FY27.

EBITDA stood at Rs 243.1 crore in Q1 FY27, down 34.49% compared with Rs 371.1 crore in Q1 FY26. EBITDA margin improved to 46.6% in Q1 FY27 as against 40.9% in Q1 FY26.

The hospitality segment reported total income of Rs 418.5 crore in Q1 FY27, up 8.5% from Rs 385.6 crore in the corresponding quarter last year. EBITDA increased 10.9% year on year to Rs 178.4 crore, while EBITDA margin improved to 42.6% from 41.7%. The average daily rate (ADR) rose 8.5% to Rs 13,247, while revenue per available room (RevPAR) increased 6.5% to Rs 8,582. Occupancy stood at 64.8%, compared with 66% in Q1 FY26.

The rental annuity segment posted total income of Rs 86.5 crore in Q1 FY27, up 18.2% from Rs 73.2 crore a year ago. EBITDA rose 20.9% year on year to Rs 73.5 crore, with EBITDA margin improving to 85% from 83.1% in the year-ago period.

The company said construction of CIGNUS II in Powai, Mumbai, is progressing as planned, with substantial completion expected by the end of FY27.

Construction of the Taj Delhi International Airport hotel in New Delhi is also progressing steadily. The company plans a partial opening in the fourth quarter of FY27, followed by a phased launch.

At the Ritz-Carlton, Hyderabad, excavation work has been completed and foundation work has commenced. The company said it is evaluating expansion potential and branding options for its Udaipur resort project. Meanwhile, foundation work and substructure waterproofing have commenced at the Hyatt Regency, Airoli in Navi Mumbai.

Shwetank Singh, MD & CEO, Chalet Hotels, said, Q1 has set a strong foundation for the full year ? overall performance has been resilient despite the challenging geopolitical situation. The demand scenario saw mixed sentiment this quarter ? air traffic stayed flat from April to June ? indicating some recovery in sentiment following the peak disruption in March. International business remained flat YoY due to the West Asia conflict. The recovery is being fuelled by domestic demand, indicating that overall demand will accelerate as business travel sentiment improves going ahead.

Our consolidated financials are not comparable YoY due to the revenue recognition trend in the Residential business. Our core businesses ? Hospitality and Annuity ? have witnessed strong momentum, underscoring the strength of our business model. Ex-Residential revenue grew 10% YoY, with margin expansion driving a 15% YoY growth in EBITDA. With two major projects ? Taj Delhi International Airport, New Delhi; and CIGNUS II, Powai ? nearing completion, the current fiscal looks promising. The domestic hospitality industry continues to enjoy favourable tailwinds, underpinned by strong consumption fundamentals, rising discretionary spending, and growing urban affluence. With our robust operating portfolio and visibility into our future growth pipeline, we remain confident in our ability to capitalise on this long-term growth opportunity.

Chalet Hotels (CHL), part of K Raheja Corp, is an asset-anchored owner-operator and developer of high-end hotels and luxury resorts in India. Its portfolio spans 11 operating hotels and resorts (3,389 keys) across globally recognized hospitality brands ? JW Marriott, The Westin, Marriott and Novotel ? with ~1,655 rooms under development with brands such as Ritz Carlton, Taj, Hyatt and more. This is complemented by an expanding commercial real estate platform, growing from 2.4 million to 3.3 million square feet.

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