Chalet Hotels (CHALET) Q1 24/25 earnings summary

Executive summary

• Achieved the strongest Q1 performance in company history, with consolidated revenue up 17% year-over-year to ₹3,691 million and adjusted EBITDA up 14% to ₹1,483 million, despite challenges from elections, heatwave, and subdued MICE and leisure demand.

• Hospitality revenue grew 15% YoY, rental & annuity revenue rose 25%, and residential sales increased with higher average prices per sq. ft.

• Announced acquisition of an 11-acre beachfront land in South Goa for a five-star deluxe resort, with approvals in place and construction expected to begin soon.

• Maintained focus on asset-led growth, operational efficiency, and sustainability, committing to net-zero GHG emissions by 2040.

• Board approved unaudited standalone and consolidated financial results for the quarter ended 30 June 2024.

Financial highlights

• Consolidated revenue grew 17% year-over-year to ₹3,691 million in Q1 FY25; consolidated adjusted EBITDA rose 14% to ₹1,483 million, with a margin of 40.2%.

• Hospitality segment revenue increased 15% to ₹3,255 million; rental & annuity revenue up 25% to ₹355 million; residential sales saw higher average prices.

• Portfolio occupancy reached 70.5%, up 85 bps year-over-year; ADR stable at ₹10,446 (+1%); RevPAR up 2% to ₹7,361.

• Consolidated PBT doubled to ₹777 million from ₹400 million year-over-year; net profit was ₹606 million, down from ₹887 million due to a high base effect from tax credits in Q1 FY24.

• Q1FY25 EPS: ₹2.79 (vs. ₹4.32 in Q1FY24).

Outlook and guidance

• Expecting improved flow-throughs and higher margins for the rest of the year as renovations complete and seasonality improves.

• Double-digit revenue growth targeted for subsequent quarters, with July already showing strong trends.

• Pipeline of 1,000 rooms to be added over the next three years, with occupancy expected to rise to mid-70% on a same-store basis.

• Margin expansion above 40% expected to be sustained.

• Multiple new projects in the pipeline, including hotel expansions and new commercial towers, with phased openings from Q2 FY25 through FY27.