Q2 2026 Chalet Hotels Ltd Earnings Call Transcript
Key Points
- Chalet Hotels Ltd (BOM:542399) launched a new premium lifestyle brand, Ativa Hotels and Resorts, targeting affluent young travelers, which is expected to enhance brand value and market presence.
- The company reported a 94% year-on-year increase in total revenue to INR7.4 billion, with consolidated EBITDA growing by 98% to INR3.1 billion, indicating strong financial performance.
- Hospitality revenue increased by 13% year-on-year, driven by a 16% growth in average room rates, showcasing effective pricing strategies.
- The commercial real estate business saw a 76% year-on-year revenue growth, with EBITDA increasing by 88%, reflecting robust performance in this segment.
- Chalet Hotels Ltd (BOM:542399) declared an interim dividend of INR one per share, marking its maiden dividend declaration and demonstrating a commitment to shareholder value.
- The company faced challenges due to rain-related disruptions and geopolitical tensions, particularly affecting travel sentiment and occupancy in some business areas.
- Occupancy rates dropped by 7 percentage points year-on-year, with overall occupancy standing at 67%, impacted by weather conditions and new inventory additions.
- The hospitality segment's EBITDA margins moderated to 40% from 41.4% last year, partly due to the ramp-up phase of newly added assets.
- The addition of new properties led to a temporary dip in occupancy, with stabilization expected to take time, affecting short-term performance.
- Leasing activity in the commercial real estate segment was muted this quarter, with ongoing discussions on key accounts delaying potential revenue growth.
(technical difficulty) (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Dr. Sanjay Setti, MD and CEO of Shelley Hotels Limited.
Thank you and over to you, doctor.itti.
Thank you, Janesh. Good morning, ladies and gentlemen, and thank you for joining us for the Q2 F5 26 call.
As many of I'll be stepping down as the managing director and CEO of Shelley Hotels Limited on 31st of January 2026.
After 26 consecutive quarters of leading these calls, today marks my final one in this role.
It's a deeply personal and reflective moment, not just the close of a chapter, but a celebration of a journey we've shared since listening. Every quarter has been more than a set of numbers. It's been a story of resilience, growth, and purposeful evolution.
This quarter, very excitingly also marks the launch of a new brand, Ativa Hotels and Resorts, a premium lifestyle brand for the
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