Chalet Hotels Ltd. · NSE:CHALET
Chalet Hotels — CLSA - India Real Estate & Hospitality Access Day (May 2023)
37 slides from Chalet Hotels's conference presentation, May 16, 2023
Slide 1: Intimation of Investor Conference
May 16, 2023 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, Sub: Intimati
Slide 2: Corporate Presentation May 2023
Corporate Presentation May 2023
Slide 3: Poised on the Springboard for Growth
Poised on the SPRINGBOARD for GROWTH The Fly Wheel Effect 2
Slide 4: Strong Tailwinds
Strong Tailwinds Strong travel rebound Passenger Air Traffic touching life-time highs Strong demand outpacing supply ADRs in most domestic markets at 10-year highs India story continues to be positive 3
Slide 5: About Chalet
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Slide 6: Operating Portfolio
Operating Portfolio The Orb – Retail & Office Tower, 0.5 mn sq. ft. Westin Mumbai Powai Lake, 600 keys Lakeside Chalet, Mumbai-Marriott Executive JW Marriott Mumbai Sahar, 588 keys Apartments, 173 Keys Four Points by Sheraton Navi The Dukes Retreat, 80 Keys Novotel Pune Nagar Road Hotel, 223 Keys Mu
Slide 7: Strategic entry into leisure space
Strategic entry into leisure space Acquired The Dukes Retreat, Lonavala To be upgraded to a 5 Star Lifestyle Resort ~7.5 acres land with 80 rooms Top destination for leisure travelers, Proximity to Mumbai and Pune To be expanded to ~130 room weddings and corporate events 6
Slide 8: Strong year, stronger progress
Strong year, stronger progress Entered a new geography With the signing of ~ 400 room hotel New Delhi Airport Forayed into leisure segment Acquisition of The Dukes Retreat, Lonavala Projects on the verge of operationalizing Cignus Powai at Westin Complex Powai ~0.78 msf Cignus Whitefield Bangalore T
Slide 9: Strongest quarter ever – Q4FY23
Strongest quarter ever – Q4FY23 Touching all-time highs Vs Q4FY23 Vs Q3FY23 Vs Q4FY22 ADR Rs 11,304 +11% +108% Hospitality Revenue Rs 3,097 mn +17% +2.5x Consolidated Revenue Rs 3,458 mn +17%* +2.3x Hospitality EBITDA Rs 1,473 mn +36% +5.0x Hospitality EBITDA Margin 47.6% +7 pp +24 pp Consolidated E
Slide 10: Announced pipeline – Hospitality
Announced pipeline – Hospitality ~40% of the additional room capacity is on existing assets which is expected to yield high EBIDTA margins Keys 3,760 FY26 ~680 FY25 DIAL - ~400 rooms 2,634 ~190 Airoli – ~280 rooms Marriott Bengaluru Whitefield - ~140 rooms The Dukes Retreat - ~50 rooms FY24 FY23 256
Slide 11: Announced pipeline – Commercial
Announced pipeline – Commercial STRATEGIC RISK HEDGE – 3.0 msf leasable Commercial office space by FY27 3.0 Leasable Area in msf FY27 0.8 msf Cignus Powai Tower 2 0.5 FY24 1.8 msf Cignus Powai Tower 1 – 0.8 msf FY23 Cignus Whitefield Bangalore Tower 1 – 0.7 msf FY27 Cignus Whitefield Bangalore Tower
Slide 12: Project Update
Project Update
Slide 13: Westin Hyderabad Hitec City – 168 rooms
Westin Hyderabad Hitec City – 168 rooms To be operational from June 2023 ACTUAL SHOT 12
Slide 14: Ongoing Projects - Hospitality
Ongoing Projects - Hospitality Addition of 88 rooms at Novotel Pune Rooms ready, full OC awaited 5-star Hotel at Terminal 3, Delhi Airport ~400 rooms Expected hotel commissioning FY26 The office space in the erstwhile Accenture Learning Centre Tower to be converted to additional ~140 guest rooms Des
Slide 15: Bengaluru Commercial Complex
Bengaluru Commercial Complex Cignus Whitefield Bangalore (Tower 1) is a premium office space Cignus Whitefield Bangalore (Tower 2) with leasable area ~0.3 msf. with leasable area ~0.65 msf. To be ready for handover to tenants from Q2FY24 Handover to tenants has commenced ACTUAL SHOT 14
Slide 16: Powai Commercial Complex
Powai Commercial Complex ACTUAL SHOT Cignus Powai at Westin Complex, Powai is a premium office space Commercial Tower-2 at Westin Complex, Powai a ~0.78 msf. premium office space ~0.75 msf. 15 In final stage of completion Dates to be announced
Slide 17: Real-estate Development in Bengaluru
Real-estate Development in Bengaluru ❖ 9 residential towers of 10 floors each ❖ 2 residential towers of 11 floors each ❖ New Commercial block for strata sale ❖ ~Rs. 4,250 mn estimated cost to completion ❖ Project expected to be completed by FY26 Approval in place from existing customers for revised
Slide 18: Sustainability Focus
Sustainability Focus
Slide 19: For a Sustainable Tomorrow
For a Sustainable Tomorrow Environment Social Governance ▪ 75%*of power sourced through renewable ▪ Empowering employees’ though developing ▪ IFC funding on ESG parameters resources in March 2023 employee centric policies, benefits learning ▪ Creating long term value with ethical business ▪ EV charg
Slide 20: Conscious at Every Step
Conscious at Every Step Chalet Hotels Limited ESG Score TICKER: CHALET _ Industry: TRT Hotels, Resorts & Cruise Lines ESG Score Result TEE Chalet Hotels yyy industry Best Industry Mean Environmental Environmental Chalet Hotels Ltd. 39 Industry Mean 18 Industry Best 77 <<< Chalet Hotels Ltd. 39 | Ind
Slide 21: Climate Group commitment
Climate Group commitment First hospitality company globally to sign up for all the three initiatives of The Climate Group ✓ 100% of the vehicle fleet ✓ Chalet Hotels commits to ✓ All properties in the used for guest transport, will double its revenue per unit Company’s portfolio to transition to Ele
Slide 22: Operational Overview
Operational Overview
Slide 23: Robust ADRs throughout Q4FY23
Robust ADRs throughout Q4FY23 ADR (Rs.) Occupancy % RevPar (Rs.) Breached Rs 12,000 mark Highest ever (~USD 150) 14,000 quarterly ADR 12,000 Highest ever quarterly RevPAR 12,000 10,000 12,239 70% 9,877 11,304 11,160 10,000 10,462 10,168 61% 8,000 8,363 8,207 8,000 56% 56% 60% 7,153 7,930 6,000 6,640
Slide 24: ADR growth – strong momentum
ADR growth – strong momentum 12,000 11% 11,304 120% 10,168 10,000 28% 100% 8,482 6% 31% 33% 37% 8,000 41% 80% 57% 7,930 6,000 7,457 60% 4,000 40% 69% 67% 63% 59% 2,000 43% 20% 0 0% FY20 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Domestic guests Foreign guests ADR (Rs) QoQ ADR growth 23
Slide 25: Hospitality Revenue breakup
Hospitality Revenue breakup (In Rs. Mn) 10,281 738 8,755 739 3,386 2,798 3,097 4,100 2,653 340 2,298 2,233 229 6,157 199 1,565 148 162 946 5,218 894 803 743 1,922 2,195 1,347 1,328 1,560 1QFY23 2QFY23 3QFY23 4QFY23 FY20 FY22 FY23 Room Revenue F&B Revenue Others Total Revenue 24
Slide 26: Highest operating performance in Q4FY23 - Hotels
Highest operating performance in Q4FY23 - Hotels 12000 48% 50% 41% 41% 39% 10,281 36% 42% 40% 330 10000 bps 8,755 30% 8000 FY23 Vs FY20 EBITDA Margin 18% 20% 6000 10% 4,100 4,318 4000 3,389 3,097 0% 2,653 2,298 2,233 2000 1,473 1,084 -10% 950 811 739 0 -20% 1QFY23 2QFY23 3QFY23 4QFY23 FY20 FY22 FY23
Slide 27: Enhanced Efficiencies – Hospitality
Enhanced Efficiencies – Hospitality Staff to room ratio* 1.18 0.93 Dec-19 Mar-23 Payroll Costs % of Revenue Utilities as a % of Revenue 21% 15% 12% 11% 7% 6% FY20 FY22 FY23 *Includes contractual employees 26
Slide 28: Hospitality City-wise Performance
Hospitality City-wise Performance Q4FY23 Revenue Rs. 3,097 Mn Q4FY23 Q3FY23 QoQ% Q4FY22 YoY% FY23 FY22 ADR (Rs.) 4% MMR 11,976 11,037 9% 5,797 107% 9,741 4,714 17% Bengaluru 10,818 9,495 14% 5,572 94% 8,825 4,403 Hyderabad 12,532 10,462 20% 4,974 152% 9,624 4,850 Pune 5,819 5,582 4% 3,914 49% 5,460
Slide 29: Rental / Annuity Business
Rental / Annuity Business (In Rs. Mn) Steady Rental from Commercial Portfolio Q4FY23 FY23 FY22 Total Revenue 281 1,000 1,050 EBITDA 260 838 789 Margin % 93% 84% 75% 28
Slide 30: Consolidated Profit / Loss Statement
Consolidated Profit / Loss Statement Particulars Q4FY23 Q3FY23 QoQ% Q4 FY22 YoY% FY23 FY22 YoY% (In Rs. Mn) Total Income 3,458 3,218 7% 1,535 125% 11,780 5,297 122% Total Expenditure 1,855 1,763 5% 1,166 59% 6,757 4,093 65% EBITDA 1,603 1,455 10% 369 334% 5,023 1,204 317% Margin % 46% 45% 1% 24% 22%
Slide 31: Consolidated Segmental
Consolidated Segmental Particulars Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 FY23 FY22 Segment Revenue Hospitality 3,097 2,653 2,233 2,298 10,281 4,100 Rental & Annuity 281 244 244 231 1,000 1,050 Corporate 80 321 27 70 499 181 Total Revenue 3,458 3,218 2,505 2,599 11,780 5,331 Segment EBITDA Hospitality 1,47
Slide 32: Leverage Position
Leverage Position (In Rs. Mn) Growth 2,030 Investment *Acquisition price + net working capital 31
Slide 33: Strengthening Balance Sheet
Strengthening Balance Sheet (In Rs. Mn) Under construction assets to generate ~20% returns (EBITDA on Invested capital) Mar-21 Mar-22 Mar-23 Allocable to operating assets 14,403 14,147 11,757 Allocable to under-construction/to be operationalized assets 4,308 8,191 12,611 Total Debt 18,711 22,338 24,
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet (In Rs. Mn) Particulars Mar 23 Mar 22 Fixed Assets 20,975 19,758 Capital Work in-progress 9,557 8,191 Investment Property 7,895 5,692 Goodwill 562 226 Other Non-Current assets 2,971 3,549 Cash and Cash Equivalents 1,328 1,255 Other Current Assets* 5,716 5,167 Total Assets
Slide 35: Profit & Loss Statement – 5 year trend
Profit & Loss Statement – 5 year trend Particulars (Consolidated) FY23 FY22 FY21 FY20 FY19 ADR 9,169 4,576 4,040 8,482 8,210 Occupancy 72% 51% 30% 71% 77% RevPAR 6,605 2,355 1,214 6,022 6,283 Total Income 11,780 5,297 3,075 10,087 10,348 Total Expenditure 6,757 4,093 2,785 6,380 6,680 EBITDA from co
Slide 36: Disclaimer
Disclaimer This release has been prepared by Chalet Hotels Limited (CHL) and the information on which it has been based has been derived from sources that we believe to be reliable. Whilst all reasonable care has been taken to ensure the facts stated are accurate and the opinions given are fair and
Slide 37: Thank You!
Investor Relations Contact Ruchi Rudra / Meghna Luthra E-mail: ruchi.rudra@chalethotels.com meghna.luthra@chalethotels.com investorrelations@chalethotels.com Thank You! Chalet Hotels Limited Raheja Towers, 4th Floor, Block G, BKC, Mumbai 400 051
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