1. Opening Hook
Just when the hospitality sector was recovering from monsoon mayhem, tariff tantrums, and surprise room supply in Mumbai, Chalet Hotels decided to flip the script. They unveiled a shiny new lifestyle brandAthiva, launched theirmaiden dividend, booked a94% revenue spike, and oh yes—bid a dramatic farewell to their long-time CEO on the same call.
Talk about mixing emotions with EBITDA.
And yes, the real masala comes later—wedding season demand, Marriott vs. new competition at Sahar, and why Bengaluru and Hyderabad ARR are flexing like gym bros. Read on, because it only gets spicier.
2. At a Glance
- Consolidated revenue up 94%– Vivarea apartment handover basically carried the quarter.
- Hospitality revenue up 13%– Tariffs rising, rains ruining.
- ADR up 16%– Chalet said “inflate this”, market obeyed.
- Occupancy down 7pp– Weather + new rooms = empty beds.
- Commercial revenue up 76%– Renters finally paying, slowly.
- EBITDA up 98%– Real estate > hotels this quarter.
- Net debt: ₹2,090 Cr– Still very manageable.
- Interim dividend announced– Proof the CFO is in a good mood.
3. Management’s Key Commentary (Quotes + Translations)
Quote:“This is my last concall as MD & CEO after 26 quarters.”(Translation: I’m leaving on a high, don’t ask me about next quarter guidance.)
Quote:“Athiva is built on joy, wellness and sustainability.”(Translation: Instagram-friendly hotels for Gen Z who vacation like influencers.) 😏
Quote:“Hospitality revenue was ₹3.8 bn, up 13% YoY.”(Translation: Pricing power saved us from rain-induced occupancy heartbreak.)
Quote:“Commercial real estate EBITDA margins at 82%.”(Translation: Hotels hustle; offices relax and print money.)
Quote:“Bengaluru and Hyderabad drove ADR strength.”(Translation: Tech bros still travelling. Bless them.)
Quote:“We remain optimistic about H2.”(Translation: Weddings, MICE, festivals = money season arriving.)
Quote:“New supply in Sahar is impacting banquets.”(Translation: Fairmont just stole some kitty parties and conferences.)
Quote:“Vivarea cash flows are strong; promoter loans repaid.”(Translation: No more debt hanging like a chandelier over us.)
Quote:“Athiva is not a pivot, it’s an evolution.”(Translation: We’re not ditching Marriott anytime soon, relax.)
4. Numbers Decoded
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Metric Q2 FY26 Q2 FY25 Trend
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Hospitality Revenue (₹ Cr) 380 336 ↑ 13%
Hospitality ADR (₹) 12,170 10,500 est. ↑ 16%
Occupancy (%) 67 74 ↓ 7pp
RevPAR (₹) 8,115 7,735 ↑ 5%
Commercial Revenue (₹ Cr) 73.8 42 ↑ 76%
Commercial EBITDA (₹ Cr) 60.7 32 ↑ 88%
Consolidated Revenue (₹ Cr) 740 382 ↑ 94%
Consolidated EBITDA (₹ Cr) 310 156 ↑ 98%
Inventory Sold (Vivarea) 55 units NA Major boost
Net Debt (₹ Cr) 2,090 2,300 ↓
Average Cost of Debt (%) 7.62 7.9 ↓
----------------------------------------------------------------------------Post-table one-liners:
- Real estate is Chalet’s secret protein supplement this quarter.
- Hospitality margins held up surprisingly well given rain, new rooms, and competition.
- Commercial leasing is slow but premium pricing compensates nicely.
5. Analyst Questions – Summaries + Translations
Q1: Is Athiva getting traction?Mgmt: Very positive reviews, strong rates.(Translation: Guests like new wallpapers and spa vibes.)
Q2: Occupancy dipped due to new rooms—will it recover above 70%?Mgmt: Yes, H2 is strong.(Translation: Wedding season is our Brahmastra.)
Q3: Leasing muted—why?Mgmt: Quality over pace.(Translation: We’re selective. Renters can wait.)
Q4: Athiva asset-light?Mgmt: Maybe later.(Translation: We’re flirting with the idea but not ready for marriage.)
Q5: Mumbai performance weak?Mgmt: New supply hit us, but we still gained market
