New Delhi: Hospitality chain Chalet Hotels has reported a profit after tax of Rs 10.3 crore for quarter two of financial year 2019 compared to a loss of Rs 12.5 crore in the same quarter of the previous year.
Its revenue per available room increased by 2 per cent to Rs 5,802 as compared to Rs 5,672 for the same quarter last year. Revenues for mixed use commercial development were at Rs 31 crore compared to Rs 10.5 crore in the same quarter in FY19 with segmental profit margin before interest depreciation and tax at 72 per cent.
Chalet’s hotel portfolio comprises of five operating hotels located in Mumbai, Hyderabad and Bengaluru, including a hotel with a co-located serviced residence.
“While the hospitality segment revenue hasn’t grown too well because of the general economic scenario we have been able to keep costs under control. Last year we had some foreign exchange losses that got reported. That’s not there this year. With the IPO proceeds we reduced our forex exposure and the dollar is more stable this year. We have had some non hotel assets coming into play over the last two three quarters. Our office building in Sahar got leased out. So, all that income started trickling in,” said CEO Sanjay Sethi.
Chalet’s upcoming hotels include a W hotel in Powai, a Hyatt Regency in Navi Mumbai and a Westin in Hyderabad. The chain’s retail F&B outlet The Orb now has 15 outlets open as of October 2019.
It also has an upcoming office tower in Powai and another one in Bengaluru. “We have decided to hedge our risks by putting in some non hotel assets in the same land parcel as the hotels. Our upcoming hotels like The Hyatt Regency in Navi Mumbai and the new Westin in Hyderabad all will have one plus one restaurants. We will lease out extra space to other restaurant brands. We find them to be more nimble in terms of changing concepts and all big cities have seen successful standalone restaurants. Some are revenue share arrangements while some are rental arrangements for us,” he said.
Source: Economic Times