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Chalet Hotels Ltd. results were not comparable on YoY basis due to higher residential income in Q1FY26

ICICIdirect Research 30 Jul 2026 DISCLAIMER

News: Chalet Hotels Ltd. results were not comparable on YoY basis due to higher residential income in Q1FY26. Consolidated Revenues (ex-residential) witnessed 9.5% YoY growth to Rs.514cr (incl. other income) in Q1FY27 (in-line with our estimates of Rs.508.5cr). In the hotel segment, revenues grew by 8.5% YoY to Rs.418.5cr led by 10.5% YoY growth in room revenues and 8.6% YoY growth in F&B segment. RevPAR grew by 6.5% YoY to Rs.8582. ADR grew by 8.5% YoY to Rs.13247 which partially offset 120bps YoY decline in occupancy to 64.8% in Q1FY27. Hotel segment EBITDA margins improved 93bps YoY to 42.6%. Annuity segment revenues grew by 18.2% YoY to Rs.83.5cr continuing its strong double digit growth trajectory with EBITDA margins expanding 191bps YoY to 85% in Q1FY27. Consolidated EBITDA margins (ex-residential) improved by 229bps YoY to 46.7% led by strong performance in the annuity business and Hotel business. EBITDA ex-residential grew by 15.1% YoY to Rs.240cr (beat to our estimates of Rs.209cr). Overall including residential income, consolidated revenues/EBITDA stood at Rs.512.3cr/Rs.234cr with adjusted PAT at Rs.93.5cr. Adjusted for exceptional item Reported PAT stood at Rs.86.1cr in Q1FY27.

View: Chalet’s (ex-residential) revenues were in-line to our estimates while operating performance and margins were beat to our estimates. Domestic demand remained resilient during the quarter led by leisure while MICE and international business (Foreign tourist arrivals) remained impacted due to West Asia crisis during the quarter. Key cities such as Mumbai, Bengaluru and Hyderabad witnessed headwinds while leisure destinations such as Pune, Delhi and Rishikesh delivered good growth in ADR and occupancy supporting the mix improvement leading to better EBITDA margins in the hotel segment. Annuity business continued its double-digit growth led by improving rentals which overall aided margin expansion on consolidated basis. Key positive is strong demand in leisure segment is aiding scale up of margin accretive resort portfolio. We believe recovery in the business segment coupled with strong leisure demand shall fuel strong growth momentum in the hotel business while strong GCC demand coupled with upcoming CIGNUS II commercial property shall aid growth in the annuity business. We await management’s commentary on the current situation and guidance ahead over the near and medium term.

Impact: Positive

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