loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Chalet Hotels has entered two binding Memorandums of Understanding with two SPVs of Mindspace Business Parks REIT

ICICIdirect Research 06 Aug 2026 DISCLAIMER

News: Chalet Hotels has entered two binding Memorandums of Understanding with two SPVs of Mindspace Business Parks REIT for availing of the premises on long-term lease. In Pune, the company will be availing grey shell lease (only structure without façade and high side MEP). The company will be adding 231 room hotel with 7000 sqft of banqueting space in the city with capex of ~Rs.1cr/key and expected launch in FY31. In Hyderabad, the company will be availing warm shell lease (including the structure, MEP) and will be adding 150 rooms with ~4300 sqft of banqueting space. Estimated capex per key will be ~Rs.1.3cr/key. The hotel is expected to be completed in FY29. Both the hotels will be positioned under Chalet’s new premium brand “ATHIVA”.

View: The addition is Chalet’s 2nd hotel in Pune and 4th hotel (incl. pipeline) in Hyderabad. In Pune, the demand continues to be robust driven by increasing scale and concentration of GCC leading to incremental foreign traveller visits, Global HQ set ups. The Hyderabad hotel will be strategically located in the upcoming financial district with high GCC concentration. Further, these hotels will be positioned near the existing assets which are already witnessing strong growth led by MICE and corporate events. Efficient long term lease agreements also lead to reduced capex requirements thereby leading to lower cash outflow and debt. The company has ~2036 rooms under pipeline taking total inventory (incl. pipeline to more than 5000 keys in the portfolio). Addition of upper up scale properties to the portfolio, scale of premium brand ATHIVA will further help the company improve its margin trajectory over the long term.

Impact: Positive

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere