Latest news with #ChaletHotels
Time of India
7 hours ago
- Business
- Time of India
Hotel stocks lose steam, fall up to 14% in 2025. Time to check out?
Geopolitical tensions and the recent Air India tragedy have dampened sentiment around tourism, but hotel stocks have been under pressure for most of 2025, with declines of up to 14%. The disconnect between solid fundamentals and stock performance reflects investor caution — a trend mirrored across the broader tourism sector . EIH Limited , the flagship company of the Oberoi Group, has been among the worst hit, with its shares down 14% so far this year. Tata Group-owned Indian Hotels Company (IHCL) has seen a similar decline. Other notable laggards include Lemon Tree Hotels (-10%), Chalet Hotels (-9%), and Mahindra Holidays & Resorts (-5%). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Premium Apartments by Signature Global Signature Global Book Now Undo An outlier in the sector has been Valor Estate (formerly DB Realty), which has delivered over 34% returns in 2025. Despite being primarily a real estate firm with hospitality interests, the company reported a 347% YoY surge in Q4 revenue and managed to significantly narrow its losses. EIH posted a 12% growth in its Q4FY25 topline while its net profit in the January-March quarter remained flat. Meanwhile, IHCL reported strong quarterly earnings which grew 37% YoY in Q4 while the company recorded a 27% jump in its revenues. Chalet Hotels also posted an impressive set of numbers, delivering a 50% PAT growth and 25% revenue uptick. As for Mahindra Holidays, the sentiments have remained subdued because of lackluster results. The profit after tax (PAT) fell 13% YoY in the quarter under review while the topline plunged nearly 3%. Live Events Nifty Tourism index: Indigo flies solo The Nifty India tourism index, a collection of 14 stocks and a representative of the overall tourism sector has declined 3% in 2025. Only two stocks have managed to report positive returns -- one is Valor and the other is Interglobe Aviation . The stock of Indigo airline operator has outperformed Nifty with 18% returns versus 5% by the latter. The situation for travel and tourism has been pretty much the same despite impressive Q4 earnings growth. BLS International, for instance, saw a stellar 70% jump in PAT and 55% rise in sales but slumped over 23% YTD. Similarly, Westlife Foodworld reported a 99% PAT surge, yet fell nearly 12%. QSR company Devyani International which is synonymous with brands like KFC, Pizza Hut and Costa Coffee has seen its shares fall by over 9% despite a 16% growth in revenue and narrowing of Q4 losses. Restaurant Brands Asia shares have slipped 8.26 on the year-to-date basis. The Burger King and Popeyes owner narrowed its Q4 loss on the YoY basis while its revenue was up 6%. Likewise, Jubilant FoodWorks shares are down 4%. The company reported a sharp drop of 80% in its Q4 PAT though the revenue increased 34% YoY. In contrast, Interglobe Aviation (IndiGo) shares were driven by strong earnings momentum. The PAT was up 26% while revenue surged 62%. Hotel stocks: Check-in or check-out? Market expert, Kranthi Bathini , who is Director-Equity Strategy at WealthMills Securities said that he remains positive about the long term prospects of the Indian tourism industry, notwithstanding the recent setbacks and concerns around global economy and geopolitics. These factors have impacted the investor sentiments around hotel and travel stocks and this could continue in the medium-to-short term. With growing disposal incomes and return of corporate travel, the outlook remains positive, Bathini said. Stocks to buy Nuvama has a buy view on Lemon Tree Hotels shares with a marginal downward revision in the target price at Rs 166. It noted that the Bengaluru, Mumbai and Delhi markets clocked the highest RevPAR (Revenue Per Available Room) improvement among other micro markets on a YoY basis in Q4. "Across LTs, key brands, Aurika/Lemon Tree Premier/Lemon Tree/Red Fox/Keys reported a YoY RevPAR growth of 25%/11%/8%/20%/24%," the brokerage noted. JM Financial has a buy view in Juniper Hotels, a smallcap stock with a market capitalization of Rs 7,081.14 crore. The stock has a 29% upside for a price target of Rs 410. Bathini recommends a buy on SAMHI Hotels and IHCL for an upside of 20%. He has a long term view on both counters. Schloss Bangalore, which operates the Leela brand, was listed on June 2. The stock is currently trading below its issue price of Rs 435. Many top brokerages like Anand Rathi remain positive on the counter for a long term period. (Data Inputs by Ritesh Presswala) ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Skift
21-05-2025
- Business
- Skift
Indian Hotel Industry to Reach $13 Billion by 2027: What's Driving This Growth
Domestic and inbound tourism, along with a growing MICE segment, are the Indian hotel industry's biggest bets, as demand continues to outpace supply. The Indian hotel sector is expected to cross INR 1 trillion ($11.7 billion) by the end of the current financial year and touch INR 1.1 trillion ($13 billion) by 2026-27, according to risk management and monitoring platform Rubix Data Sciences. This figure stood at INR 820 billion ($9.6 billion) at the end of the 2024 fiscal year. In its recent industry report, the firm projected that the country's hospitality sector will grow 10.5% annually till March 2027. Three key factors are expected to drive this growth: domestic travelers, foreign arrivals, and MICE (meetings, incentives, conferences, and exhibitions) segment. Rubix estimates that domestic travelers will contribute 50% of the incremental growth in revenue, while foreign tourists are projected to account for a 30% revenue share. The MICE segment is expected to account for the remaining 20% increase in revenue, the report said. 'These drivers are expected to remain sustainable over the next three years and will significantly fuel the sector's expansion,' it said. On foreign tourist arrivals (FTAs), the report said that there was a positive correlation between foreign tourists and the average daily rates (ADRs) in the premium hotel segment. 'For businesses like Chalet Hotels, which derive 35%-40% of their revenue from foreign guests, FTAs are a key driver of ADR performance. Foreign tourists, with higher spending power and a preference for luxury services, are vital contributors to the demand for premium rooms.' It added that by 2028, foreign tourist arrivals in India are expected to reach nearly 30.5 million, up from 9.6 million in 2024. However, India is still struggling with low inbound numbers exacerbated by a low global tourism promotion budget. Growing Occupancy: According to the report, the occupancy rates of hotels is expected to reach 73% by 2026-27, up from 68% in 2024 financial year and the all-time low of 35% during the pandemic. This is expected as demand is projected to continue outstripping supply. 'Demand is projected to grow at a 10.5% annual rate, while supply is expected to increase by only 8% annually. This supply-demand imbalance is likely to reduce vacancy rates and drive higher occupancy levels, as hotels face increased pressure to meet the rising demand,' it said. This higher demand is driving more hotel companies into India. In April, six international hotel brands announced deals in India within a span of four days. Singapore-based The Ascott Limited announced its expansion plans with a focus on Tier-2 and 3 cities. Its Chief Operating Officer for EMEA & South Asia, Lee Ngor Houai said that there is a 'significant under-penetration of branded hotels' in smaller cities. For Accor's chairman and CEO Sébastien Bazin, India is 'one of the world's most exciting travel markets.' India also continues to be a cornerstone of Marriott International's future growth, with the company projecting that the country will become its third-largest market. Inside Radisson's Expansion Plans, Marketing Strategy Radisson Hotel Group's portfolio in India has expanded to 200 operational and developing properties. The chain has been present in the country for 26 years. Indians relate to Radisson as an Indian brand, Nikhil Sharma, managing director and chief operating officer for South Asia at Radisson Hotel Group told Skift. 'As an international brand, we are very local and nationalistic in our approach. We continue to grow because more than 50% of our portfolio is in smaller cities.' He said that over the next 5-7 years, India could go from 185,000 branded hotel rooms to 1 million operating rooms. The company is working on a program that aims to prepare its properties across the world for Indian travelers. The program, called Welcome India, is currently in the works, he said. Competition is intensifying in India as the brands present in India are increasing their inventory and more brands are entering. He said Radisson is counting on word of mouth and loyalty to help distinguish itself among an increasingly discerning customer base. Radisson is also upping its experiential offerings for sports enthusiasts, readers, and couples looking to get married soon. Indian Railways Unveils its SuperApp The Indian Railway Catering and Tourism Corporation (IRCTC) has unveiled its new mobile application SwaRail. The app is meant to be a unified platform for all railway-related services. SwaRail allows users to check their booking status, book meals, explore facilities on stations, and access tourist services. It also provides real-time train tracking service and eliminates the need for frequent logins. Last November, a report by Accenture revealed that Indians are dissatisfied with the existing travel planning options and are seeking a travel superapp. It added that travelers feel the booking process is the most complicated stage of a journey. Indian online travel agency MakeMyTrip is eventually planning to launch a travel superapp, while Skyscanner is also preparing to launch a new marketplace within its app offering a range of additional services. U.S. Imposes Restrictions on Indian Travel Agents The U.S. on Monday said it was imposing restrictions on the owners, executives, and senior officials of India-based travel agencies for knowingly facilitating illegal immigrants to the North American nation. It added that its India Mission was working 'actively' to identify and target individuals and agencies involved in facilitating illegal immigration and human smuggling operations. 'Our immigration policy aims not only to inform foreign nationals about the dangers of illegal immigration to the United States but also to hold accountable individuals who violate our laws, including facilitators of illegal immigration,' the U.S. Mission in India said in a statement. This comes just days after the U.S. warned Indian citizens against overstaying in the country. 'If you remain in the United States beyond your authorized period of stay, you could be deported and could face a permanent ban on traveling to the United States in the future,' the India mission of the U.S. said on Saturday. Delhi Airport Operator Divests in Aviation Services Company for $1.5 Million Delhi Airport operator DIAL has sold its entire 50% stake in Delhi Aviation Services (DASPL) for INR 130 million ($1.5 million). The stake has been sold to Bird Flight Services, which already held a 25% share in the company. Delhi Aviation Services was given the concession to run the operations of bridge-mounted equipment, including ground power units, pre-conditioned air units and supply of potable water to aircraft at Terminal 3 of the Delhi Airport. However, according to a regulatory filing, the company is currently not carrying any business operations. Evoke Experiences Announces New Experiential Hotels Experiential hotels company Evoke Experiences is undertaking a strategic expansion to grow its presence in the hospitality landscape. The company said Monday that the expansion would mark a shift in its operating model, which currently focused on immersive glamping retreats and cultural tent cities. Now, the company will widen its experiential properties portfolio and will look for asset leasing and management collaborations. Currently, it operates 750 keys and plans to expand this figure to 1,000 by the end of the year. It also said that while it has a property coming up in Ayodhya, the company is preparing to launch a new site in Gujarat's Gir.
Yahoo
14-05-2025
- Business
- Yahoo
Chalet Hotels Ltd (BOM:542399) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic ...
Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Chalet Hotels Ltd (BOM:542399) reported its strongest year-to-date performance in FY25, with record revenue and profitability driven by robust business fundamentals and strategic acquisitions. The company achieved the highest ever average room rate (ARR) of INR 14,345 at the portfolio level, marking a 21% year-on-year increase. Hospitality segment revenue grew by 20% to INR 4.6 billion for the quarter, with room revenue rising 27% year-on-year. Chalet Hotels Ltd (BOM:542399) has a strong focus on cost control, achieving an EBITDA margin of 48.5% in the hospitality division, up 60 basis points year-on-year. The company is expanding its portfolio with new projects, including a 170-room luxury hotel in Goa and additional rooms at the Bangalore Marriott Hotel Whitefield, aligning with its strategy of working with scale. The geopolitical situation in the subcontinent poses potential risks to business operations, with the company closely monitoring and implementing contingency plans. There has been an unexpected delay in some projects due to changes in NGT regulations, impacting several projects within a 5-kilometer radius of the national park. Despite strong performance, the company is 9% below its internal revenue targets for May due to recent geopolitical developments. The company has a significant net debt of INR 19.9 billion as of March 31, 2025, which may impact future financial flexibility. There are concerns about potential occupancy dilution in some properties, although the company expects positive growth in occupancy rates. Warning! GuruFocus has detected 2 Warning Sign with BOM:542399. Q: With many international players entering the market, how does Chalet Hotels plan to maintain its competitive edge, especially with rising real estate and labor costs? Additionally, how will potential interest rate cuts affect your financial strategy? A: (Unidentified_2, MD and CEO) Chalet Hotels focuses on asset ownership, with efficient cost management in building and operating hotels. Our strategic design and cost control allow us to maintain a competitive edge. (Unidentified_3, CFO) Our current cost of capital is 8.4%, and we anticipate further reductions as interest rates are reset, potentially lowering our finance costs. Q: How have recent geopolitical developments affected your occupancy rates and revenue, particularly in the leisure and business segments? A: (Unidentified_2, MD and CEO) The geopolitical situation has caused volatility, but we are still experiencing a 12% year-on-year growth in May, despite being 9% below our internal targets. We have seen some cancellations in the MICE segment, but the overall growth trajectory remains positive. Q: What is your outlook on the Goa market, and how do you assess the demand-supply scenario there for the next few years? A: (Unidentified_2, MD and CEO) We see Goa as a deep market with strong mid- and long-term potential. Our investments in North and South Goa reflect our confidence in the region's growth, and we anticipate double-digit revenue growth in the coming years. Q: Can you provide details on the acquisition and expected performance of your second hotel in Goa? A: (Unidentified_2, MD and CEO) The acquisition cost is approximately INR 136 crore, primarily for land. We expect the hotel to be completed in about three years, with average room rates between INR 18,000 and INR 21,000. The hotel will be positioned in the upper upscale luxury segment. Q: How do you plan to manage your debt and leverage, especially with your growth targets and potential acquisitions? A: (Unidentified_2, MD and CEO) We maintain a strong balance sheet and are prepared for strategic growth opportunities. Our internal accruals and prudent debt management will support our expansion plans, aiming for a debt-to-EBITDA ratio below 3.5 times. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Business Standard
14-05-2025
- Business
- Business Standard
New properties and office leasing to drive growth for Chalet Hotels
Chalet Hotels expects margin growth from recent hotel additions and office leasing. The company has added properties like The Westin Resort and Spa, Himalayas, and Courtyard by Marriott in Aravali, among others. 'There is a lot happening because some of the assets that we have added in the last few quarters are still maturing, as they mature, the margins will improve in those assets (the above-mentioned properties),' Sanjay Sethi, managing director and chief executive officer, Chalet Hotels, told Business Standard. He further added that as the company continues to lease more office spaces and the maturing of newly added properties will help the company improve its margins and further strengthen its business in Q1FY26 and Q2FY26, which are generally considered slow quarters for the industry. The hotel company has around 640 rooms in its pipeline and approximately 1,250 rooms under approval. All future expansion plans will be funded primarily through internal accruals, Sethi added. 'I expect occupancy to grow by 100-200 basis points in FY26, Currently, our portfolio's occupancy is around 76 per cent,' Sethi said. He also anticipates the RevPAR (Revenue per Available Room) to see double-digit growth, with the industry overtaking 2024 level in room rates, which was the highest in the Indian hospitality industry. Chalet Hotels reported a 50.2 per cent rise in consolidated net profit to ₹123.9 crore in Q4FY25 compared to the last quarter. Sethi noted that the current geopolitical situation between India and Pakistan has resulted in a temporary dip in bookings across the country due to the decline in foreign tourist inflows. May's monthly performance is below expectations, but he emphasised that it is still higher than last year. He anticipates stability in booking patterns across India by June. The company has about 70 per cent of its office spaces leased out across India and office rentals contribute about 13 to 14 per cent of its overall revenue and the rest from the hospitality business. Mumbai remains the highest contributor for revenue with two prime properties, JW Marriott, Sahar and Westin and Marriott Executive Apartments, Powai. After Mumbai, Hyderabad and Bengaluru hotel properties contribute the most to the company. The company's net sales rose 24.8 per cent to ₹522 crore in Q4FY25 on a year-on-year basis (Y-o-Y), while PBIDT jumped 35.9 per cent to ₹256.9 crore in the January-March quarter on a Y-o-Y basis. Mumbai remains the highest contributor to revenue, followed by Hyderabad and Bengaluru.
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Business Standard
13-05-2025
- Business
- Business Standard
Recently added hotel assets, office leasing to boost Chalet's margins
Chalet Hotels expects margin growth from recent hotel additions and office leasing. The company has added properties like The Westin Resort and Spa, Himalayas, and Courtyard by Marriott in Aravali, among others. 'There is a lot happening because some of the assets that we have added in the last few quarters are still maturing, as they mature, the margins will improve in those assets (the above-mentioned properties),' Sanjay Sethi, managing director and chief executive officer, Chalet Hotels, told Business Standard. He further added that as the company continues to lease more office spaces and the maturing of newly added properties will help the company improve its margins and further strengthen its business in Q1FY26 and Q2FY26, which are generally considered slow quarters for the industry. The hotel company has around 640 rooms in its pipeline and approximately 1,250 rooms under approval. All future expansion plans will be funded primarily through internal accruals, Sethi added. 'I expect occupancy to grow by 100-200 basis points in FY26, Currently, our portfolio's occupancy is around 76 per cent,' Sethi said. He also anticipates the RevPAR (Revenue per Available Room) to see double-digit growth, with the industry overtaking 2024 level in room rates, which was the highest in the Indian hospitality industry. Chalet Hotels reported a 50.2 per cent rise in consolidated net profit to ₹123.9 crore in Q4FY25 compared to the last quarter. Sethi noted that the current geopolitical situation between India and Pakistan has resulted in a temporary dip in bookings across the country due to the decline in foreign tourist inflows. May's monthly performance is below expectations, but he emphasised that it is still higher than last year. He anticipates stability in booking patterns across India by June. The company has about 70 per cent of its office spaces leased out across India and office rentals contribute about 13 to 14 per cent of its overall revenue and the rest from the hospitality business. Mumbai remains the highest contributor for revenue with two prime properties, JW Marriott, Sahar and Westin and Marriott Executive Apartments, Powai. After Mumbai, Hyderabad and Bengaluru hotel properties contribute the most to the company. The company's net sales rose 24.8 per cent to ₹522 crore in Q4FY25 on a year-on-year basis (Y-o-Y), while PBIDT jumped 35.9 per cent to ₹256.9 crore in the January-March quarter on a Y-o-Y basis. Mumbai remains the highest contributor to revenue, followed by Hyderabad and Bengaluru.
