Chalet Hotels: Margin Boost on New Assets & Leasing

Chalet Hotels projects improved operating margins, driven by newly added hotel assets and rising office leasing activity. Recent additions like The Westin Resort & Spa, Himalayas, and Courtyard by Marriott, Aravali, are expected to contribute significantly as they stabilize. The company anticipates a business uplift in Q1 and Q2 of FY26, supported by continued leasing momentum and property maturation.

With approximately 640 rooms under development and another 1,250 pending approvals, future expansion will primarily be funded through internal accruals. Chalet expects occupancy to increase by 100–200 basis points in FY26 from the current portfolio average of 76%, alongside double-digit growth in Revenue per Available Room (RevPAR), outpacing 2024 levels.

Currently, about 70% of the company's office space is leased, contributing 13–14% to total revenue. The hospitality segment accounts for the remainder. Mumbai remains the largest revenue contributor, anchored by JW Marriott Sahar and Westin and Marriott Executive Apartments, Powai. Hyderabad and Bengaluru follow as key markets.

News by Rahul Yelligetti.