Chalet Hotels Ltd. · NSE:CHALET
Chalet Hotels — Investor Presentation (August 2024)
34 slides from Chalet Hotels's investor presentation, Aug 13, 2024
Slide 1: Exchange filing cover letter for Corporate Presentation
August 13, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza Corporate Relationship Department Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (East), Dalal Street, Fort, Mumbai 400 051. Mumbai 400 001. Scrip Code: CHALET Scrip Code: 542399 Dear Sir / Madam, Subject: C
Slide 2: Chalet Hotels Limited Corporate Presentation August 2024
CHALET HOTELS LIMITED CORPORATE PRESENTATION August 2024 NSE|BSE: CHALET
Slide 3: Disclaimer
Disclaimer This presentation is issued by Chalet Hotels Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offer or invit
Slide 4: K Raheja Corp – Group Overview
K Raheja Corp – Group Overview Office Hospitality Malls Residential Retail Leaseable Area 3,144 (2) 4 Developed Operates 240+ >54 msf(1) operational keys operational residential spaces retail outlets across malls across 5 cities India Group Hotels Partner with Marriott, Accor Group, Hyatt and IHCL(3
Slide 5: Chalet Overview
Chalet Overview Hotels Keys Brands Commercial Assets (msf) 10 2 3,052 865* 11# 2 2.4 0.9 Operational Pipeline Operational Pipeline In Existing assets In Pipeline assets Operational Pipeline Active Asset Management & Operating Model Growth From Quality Developments & Acquisitions ❑ New developments a
Slide 6: Chalet: At the inflection point
Chalet : At the inflection point Focused on remaining at the forefront of growth Operating Efficiencies & Margins amongst best# ▪ Addition of 418 keys and 1.2 msf office space in the ▪ Improvement in Adjusted EBITDA margins from 41.3% in operating portfolio during FY24. FY23 to 43.8% in FY24 ▪ Build
Slide 7: Right Hotels in Right Locations with Right Brand Partnerships
Right Hotels in Right Locations with Right Brand Partnerships 3,052 Operational Keys MUMBAI JW Marriott Mumbai Sahar The Westin Mumbai Powai Lake Lakeside Chalet, Mumbai - Four Points By Sheraton Navi 588 Keys 604 Keys Marriott Executive Apartments Mumbai, Vashi 173 Keys 152 Keys PUNE KHANDALA NCR N
Slide 8: Complementary Commercial Spaces
Complementary Commercial Spaces MUMBAI BENGALURU The Orb - Retail & Office Tower CIGNUS Powai® Tower I CIGNUS Whitefield Bangalore® Tower I 0.5 Mn Sq. ft. 0.9 Mn Sq. ft. 0.7 Mn Sq. ft. Leasing underway CIGNUS Whitefield Bangalore® Tower II 0.3 Mn sq. ft Leasing underway Strategically maximizing deve
Slide 9: Chalet commits to Net Zero GHG
Chalet commits to Net Zero GHG Continued commitment to sustainability 8
Slide 10: Poised to Benefit from Industry Trends
Poised to Benefit from Industry Trends 9
Slide 11: Strong India story
Strong India story Governments emphasis on ‘Make in India’ & ‘Dekho Apna Desh’* 8.9% CAGR growth expected in per-capita income (FY 23 – FY29) India GDP Strong push on Toursim related infrastructure development Growth Rate 6.3% Hotel Sector’s GDP contribution to grow 25x to US$1 tn by 2047$ Expected
Slide 12: Tourism and Infrastructure growth to boost hospitality demand
Tourism and Infrastructure growth to boost hospitality demand Tourism on the rise Tourism showing a sustained growth Air Traffic Resurgence – 26% With Access Infrastructure Establishing presence in cities handling 52% of above 2022 levels Improving India’s Air traffic Air Traffic (in Mn) Through Pla
Slide 13: Hospitality Sector in India is Significantly underpenetrated
Hospitality Sector in India is Significantly underpenetrated… Number of Hotel Keys per Mn Sq Office Space (Dec 2023) 651 529 289 174 149 106 94 78 New York San Francisco London Pune Hyderabad Bangalore Mumbai NCR Source: Horwath HTL Data as on 31 Dec 2023 12
Slide 14: Long-term demand growth outpacing supply growth
…with Long-term demand growth outpacing supply growth Segmental Share of Supply (FY 23 – FY 27) Demand - Supply Growth (FY 23 – FY 27) 11.2% 9.5% 10.3% 7.2% 11.6% 5.3% Pan India 9.0% 6.0% Pune 2.5% 10.0% Bengaluru 5.9% 10.0% Delhi 4.6% 80% hotel inventory * of Chalet Hotels Hyderabad 8.0% ~87% hotel
Slide 15: Leasing Activity Remains Buoyant
Leasing Activity Remains Buoyant Pan India Net Leasing Volume in Q3 2023 Pan India Development Completions in Q3 2023 8.27 msf (+31.8% QoQ) 10.68 msf (-31.23% QoQ) Bengaluru, had the second highest in quarterly net leasing with Q3 CY 2023 leasing of 1.79 msf (21.6% of India Office Market). Overall l
Slide 16: Q1FY25 Updates
gi CHALET Q1FY25 Updates
Slide 17: Overview of the quarter
Overview of the quarter HIGHEST Q1 STABLE & RESILIENT REVENUE : 17% SUSTAINABLE PERFORMANCE OPERATIONAL METRICS Adj EBITDA : 14% GROWTH ✓ 7% Expected GDP growth over FY25 ✓ Strong Pipeline & diversified portfolio Strong Resilient ✓ Focused infrastructure development Macro Story Business ✓ Resilient
Slide 18: Historical Best Q1 Performance
Historical Best Q1 Performance In Mns Revenue Performance Adjusted EBITDA Performance ₹3,691 ₹3,146 ₹2,553 ₹1,483 ₹1,299 ₹1,052 Q1FY23 Q1FY24 Q1FY25 Q1FY23 Q1FY24 Q1FY25 In a quarter that witnessed unique challenges, we continued on the growth trajectory Extreme heat wave Subdued quarter for leisure
Slide 19: Financial Highlights Q1FY25
Financial Highlights Q1FY25 YoY Growth % CONSOLIDATED HOSPITALITY ₹ 3,691 Mn 17% ₹ 3,255 Mn 15% Revenue ₹ 1,483 Mn ₹ 1,341 Mn 12% 14% Adjusted EBITDA 40.2% 1.1 pp 41.2% 1.3 pp Adj EBITDA Margin ₹ 777 Mn 109% PBT All adjustments detailed in Slide 12 18
Slide 20: Hospitality Revenue breakup
Hospitality Revenue breakup In Rs. Mn. Room Q1FY24 1,747 865 2,822 F&B Other Q1FY25 2,004 1,039 3,255 15% Total Revenue Mix Guest Profile Q1FY25 5% 4% Diversification from 30% 35% 13% 64% to 59% YoY 59% 19% 70% 65% Q1FY24 Q1FY25 MMR Hyderabad Bengaluru Pune/Lonavala NCR Domestic Guests Foreign Guest
Slide 21: Hospitality Performance
Hospitality Performance Portfolio level Q1FY25 Q1FY24 YoY% Same store YoY% ADR (Rs.) MMR 10,530 10,826 -3% -3% Others* 10,339 9,555 8% 8% Combined 10,446 10,317 1% 1% Occupancy (%) MMR 78.0% 73.7% 430 bp 430 bp Others* 62.7% 64.3% -158 bp -77 bp Combined 70.5% 69.6% 85 bp 191 bp RevPAR (Rs.) MMR 8,2
Slide 22: Hospitality: Retained Efficiencies
Hospitality: Retained Efficiencies Total expenses % of Revenue 59.6% 58.8% Q1FY24 Q1FY25 Staff to room ratio* Utilities % of Revenue Payroll Costs % of Revenue 0.96 14.8% 6.4% 6.5% 13.4% 0.94 Jun-23 Jun-24 Q1FY24 Q1FY25 Q1FY24 Q1FY25 *Includes full time and contractual employee 21
Slide 23: Rental/Annuity: Performance Highlights
Rental/Annuity: Performance Highlights Msf. (Rs. Mn.) Q1FY25 Q4FY24 FY24 Total Revenue 355 354 1,241 2.4 2.4 EBITDA 264 272 988 * 1.2 EBITDA% 74% 77% 80% 1.1 New towers under leasing Mar' 24 Jun' 24 Leasable Area Leased Area Artists’ rendering Artists’ rendering CIGNUS Powai® Tower I CIGNUS Whitefie
Slide 24: Focus on Sustainability & Growth
Focus on Sustainability & Growth 23
Slide 25: Focused on ramping-up in-house capabilities in hotel management
Focused on ramping-up in-house capabilities in hotel management • Pipeline : Hyatt Regency at Airoli and Taj at Delhi • Apart from traditional asset management, Chalet International Airport will be under franchising has also been focused on building capabilities model Adding the and talent pool for
Slide 26: Our Sustainability story
Our Sustainability story DJSI SCORE ENERGY MANAGEMENT WATER & WASTE MANAGEMENT E Mobility Corporate Sustainability Assessment Wet waste treated through 100% 57 61% Organic Waste Composters Placed 8th in the world Renewable energy Operational assets have EV charging Recycling of wastewater among cate
Slide 27: Climate Change Actions
Climate Change Actions Company has signed up for all the three initiatives of The Climate Group The Company sourced 61% of The Company is All our operational assets are its electricity from renewable strategically investing in equipped with EV charging sources till March 2024 to technology and IoT-
Slide 28: Upcoming New Projects
Upcoming New Projects MUMBAI DELHI Taj at Delhi International Airport CIGNUS Powai® Tower II Hyatt Regency at Airoli 385-390 rooms 0.9 msf ~280 rooms Artist’s renderings 27
Slide 29: Hospitality Pipeline
Hospitality Pipeline 3,917 Keys 3,637 Keys ~865 3,247 Keys rooms 3,052 Keys Mar 2024 FY25 FY26 FY27 + 418 Keys + 195 Keys + 385-390 Keys + 280 Keys +88 Keys ~125 - 130 Keys ‘Taj’ at Terminal 3, Delhi ‘Hyatt Regency’ at Airoli, Novotel Pune Bengaluru Marriott Hotel Airport Mumbai 168 Keys Whitefield
Slide 30: Rental/Annuity: Growth and Announced pipeline
Rental/Annuity: Growth and Announced pipeline 3.3 msf 37% 2.4 msf FY24 FY27 0.9 msf 0.9 msf CIGNUS Powai® Tower I CIGNUS Powai® Tower II 0.3 msf CIGNUS Whitefield Bangalore® Tower II Focus on maximizing development potential and creating an additional diversified revenue stream 29
Slide 31: Real-estate Development in Bengaluru
Real-estate Development in Bengaluru No. of Avg Sale Price As of June 2024 (Msf) Units (Rs. psf) Residential (A+B+C+D) 0.85 321 A Historical sales 0.28 83 7,672 New Sales (B+C) 0.33 138 19,193 B Sold in FY24 0.29 121 18,839 C New sales Q1FY25 0.04 17 21,548 D Unsold 0.25 100 Commercial 0.15 9 2 1 Re
Slide 32: Profit & Loss Statement
Profit & Loss Statement Particulars (Consolidated) (in Rs. Mn) FY21 FY22 FY23 FY24 Q1FY25 ADR 4,040 4,576 9,169 10,718 10,446 Occupancy 30% 51% 72% 73% 70% RevPAR 1,214 2,355 6,605 7,776 7,361 Total Income 3,075 5,297 11,780 14,370 3,691 Total Expenditure 2,785 4,093 6,757 8,327 2,208 EBITDA from co
Slide 33: Capex / Debt Position
Capex / Debt Position in Rs. Mn Mar-22 Mar-23 Mar-24 Jun-24 Net Debt 22,338 24,368 25,086 15,319 We raised ~Rs. 10bn in QIP in April 2024, of which Rs. Investment Outflow YTD # 3,489 5,985 6,596 1,313 9bn was utilised against debt Interest Rate (%) 7.52 8.75 8.9 8.43 Capital Employed 35,821 38,531 3
Slide 34: Thank You
Chalet Hotels Limited Thank You Raheja Towers, 4th Floor, Block G, BKC, Mumbai 400 051 Investor Relations Contact: Ruchi Rudra ruchi.rudra@chalethotels.com Shuchi Aggarwal Shuchi.aggarwal@chalethotels.com investorrelations@chalethotels.com