1. At a Glance – Champagne Revenues, EMI Hangover
If hotel stocks were IPL teams, Chalet Hotels Ltd would be the franchise that owns the stadium, the parking lot, the food court, and still asks the bank for more loans to build a new VIP box.
As of Feb 2026, Chalet commands a market cap of ₹18,751 Cr, trades at ₹856, and is down 11% over the last 3 months—clearly the stock market had one drink too many after the hotel party. Yet, fundamentals? Those are still checking in with luggage.
- Q3 FY26 Revenue: ₹5.9 bn (+27% YoY)
- Q3 FY26 EBITDA: ₹2.7 bn (+29% YoY)
- Q3 FY26 PAT: ₹1.24 bn
- Operating Margin: ~46% (hotelier’s dream, banker’s nightmare)
- ROCE: 11.1%
- Debt: ₹2,489 Cr
- Net Debt (FY25): ~₹2,600 Cr (down from ₹3,000 Cr)
Hotels are full, ADRs are flexing, RevPAR is strutting like it owns Bandra, and promoters still control 67.3%—though with 31.9% pledged, because luxury always comes with collateral damage.
So the big question:
Is Chalet a cash-generating hospitality beast… or a beautifully decorated leverage machine?
Let’s check in. 🛎️
2. Introduction – From Pandemic PTSD to Five-Star Swagger
Chalet Hotels is what happens when a real estate heavyweight (K Raheja Corp) decides that selling square feet isn’t enough—you also need to sell experiences, buffets, weddings, corporate offsites, and overpriced room service coffee.
Pre-COVID, Chalet was bleeding patience.
During COVID, it bled money.
Post-COVID, it is bleeding… confidence.
From FY21 to FY25, the company pulled off a classic hospitality comeback:
- Occupancies bounced back to 73%
- ADR crossed ₹12,000
- RevPAR hit ₹8,781
- EBITDA margins entered “luxury hotel porn” territory
But this is not a simple hotel story. Chalet is:
- Hotels (87% of revenue)
- Commercial annuity real estate (11%)
- Residential development (2%)
In short:
You sleep here, work here, buy a flat here, and indirectly pay EMI interest for all of it.
Sounds fun? Let’s decode the madness.
3. Business Model – WTF Do They Even Do?
Explaining Chalet’s business is like explaining Mumbai real estate prices—confusing, impressive, and slightly terrifying.
A. Hospitality – The Crown Jewel
Chalet operates 3,314 hotel keys across India under global luxury brands:
- Marriott
- Westin
- JW Marriott
- Novotel
- Courtyard by Marriott
- Hyatt (pipeline)
- Taj (coming soon)
Geographic sweet spot?
- MMR (Mumbai): 53% of revenue
Because Mumbai never sleeps—and neither do hotel tariffs.
Revenue mix within hotels:
- Rooms: 61%
- F&B: 33%
- Others: 6%
Basically, rooms pay the bills, weddings pay the bonuses.
B. Commercial Annuity – The Silent Cash Machine
Chalet owns 2.4 million sq ft of commercial office space.
- Leased: 1.7 mn sq ft
- Occupancy: 57–70%
Key assets:
- The Orb, Mumbai
- CIGNUS Powai
- CIGNUS Whitefield, Bengaluru
This segment doesn’t party, doesn’t fluctuate, and doesn’t complain.
It just quietly sends rent cheques. 🧾
C. Residential – Blink and You’ll Miss It
- Bengaluru Koramangala project
- 321 units
- 138 sold as of Q1 FY25
Revenue contribution? 2%
Importance? Mostly balance sheet optics.
4. Financials Overview – The Numbers That Matter
