Chalet Hotels Ltd. · NSE:CHALET
Chalet Hotels — Investor Presentation (November 2019)
35 slides from Chalet Hotels's investor presentation, November 2019
Slide 1: Corporate Presentation November 2019
Corporate Presentation November 2019 1
Slide 2: What Defines Us
What Defines Us Pedigree K Raheja Corp Leading real estate developer in India for over Four Decades Proficiency Right Assets Right Location Right Partnership Right Team Performance Robust Operating Performance 2
Slide 3: K Raheja Corp – A Group Overview
K Raheja Corp – A Group Overview 4 Decades of experience Pan India presence 9,500+ employees Office Hospitality Malls Residential Retail Developed residential spaces Leading retail platform - Developed >25 msf 2,700+ (1) operational keys 2.5 msf area across 6 malls across 6 key cities 290 stores acr
Slide 4: About Chalet
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Slide 5: Well Positioned to Benefit from Industry Trends
Well Positioned to Benefit from Industry Trends Located in INR 10,348 Mn INR 3,668 Mn High Density / 35.5% Hospitality the leading Business Districts About the Company Mumbai, Bengaluru, EBITDA and EBITDA business driver Total Income – FY2019 Hyderabad Margin – FY2019 (FY19 Total Income) Others Comm
Slide 6: Our Hotel Portfolio
Our Hotel Portfolio JW Marriott Mumbai Sahar Bengaluru Marriott Hotel Whitefield The Westin Hyderabad Mindspace (427 Keys) (588 Keys) (391 Keys) Strategically Chosen Brands at Key Locations Leading to Market Leadership Four Points by Sheraton Navi Renaissance Mumbai Convention Centre Hotel (600 Keys
Slide 7: Portfolio of High-End, Globally Recognized, Branded Hotels
Portfolio of High-End, Globally Recognized, Branded Hotels 588 Top tier 600 173 5 star 2,179 Deluxe Luxury Keys 152 * Luxury – Upper Upscale Mumbai Hyderabad 152 4–5 Bengaluru Keys star Upscale 3-4 Upper-Midscale star 2-3 391 427 Midscale-Economy star * Under Franchise Agreement, Leasehold Land 7
Slide 8: 65% of Current Inventory in the Financial Capital of India
65% of Current Inventory in the Financial Capital of India Located in Central Business District and New Business Centers of Mumbai Metropolitan Region Favorable Demand/Supply Current Inventory Proposed Pipe-line Dynamics (1,513 Keys) Inventory (~410 keys) + 1 Infrastructure Opportunities augurs well
Slide 9: Strategically placed in Business Cities
Strategically placed in Business Cities Located in New Business Centers Bengaluru Hyderabad Current Inventory 391 427 Mindspace Whitefield ~170 Proposed Pipe-line Inventory 1 Ongoing Infrastructure Developments in the Micro Markets Bengaluru Hyderabad • Metro Line • Metro Line • Improved road infras
Slide 10: Hospitality City-wise performance
Hospitality City-wise performance FY19 Segment Revenue Rs 9,137 Mn FY19 FY18 FY17 CAGR Total Keys 2,331 2,328 2,259 1.6% Bangaluru ADR (Rs.) 17% MMR 8,086 7,629 7,700 2.5% Bengaluru 8,756 8,620 8,9681 -1.2% Hyderabad Hyderabad 8,205 7,896 7,792 2.6% MMR 18% Combined 8,218 7,840 7,822 2.5% 65% Occupa
Slide 11: Business Model Built Upon Principles of Active Asset Management
Business Model Built Upon Principles of Active Asset Management ✓ Market Leading Operating Parameters Actively engage with hotel management team at each hotel to set operational and financial targets Employee Cost as a % of ✓ 14% Revenue (FY19) Drive performance through structured monthly review Sta
Slide 12: Development of Hotels at Optimal Cost, Design and Build
Development of Hotels at Optimal Cost, Design and Build Identification of Location, Land Acquisition (In Rs. Mn) • Comprehensive market selection process • Management’s expertise and know-how plays a vital role in location selection Gross Block per Key Project Planning 11.5 11.4 11.4 • In-house team
Slide 13: Hotel-led Complementary Mixed-Use Commercial and Retail Developments
Hotel-led Complementary Mixed-Use Commercial and Retail Developments Strategy of co-locating projects augur well for Business Demand coupled with optimal utilization of available land Office and Retail (0.9 Mn sqft) Inorbit Mall Office Tower Whitefield, Bengaluru Whitefield, Bengaluru 260K sq ft of
Slide 14: Proposed Development Pipeline in Key Business Districts
Proposed Development Pipeline in Key Business Districts Hotel and Convention Center Hotel Commercial Location Renaissance Complex, Powai Airoli, Navi Mumbai Renaissance Complex, Powai Proposed Brand ‘W’3 Hyatt Regency 4 - Est. opening 20221 20221 20211 Keys / Total Build Up Area ~150 Keys & ~40k Sqf
Slide 15: Sustainable Development & A Better Tomorrow
Sustainable Development & A Better Tomorrow Energy Initiatives ✓ 42% of electricity sourced from renewable energy sources (FY19) ✓ Power consumption down 9% per key (FY16 to FY19) Minimizing Plastic Usage ✓ Shifting to Bio-degradable plastic Water Management wherever possible ✓ Rain-water harvesting
Slide 16: Socially Responsible
Socially Responsible Partnering with TRRAIN Creating Livelihood and skilling Differently Abled People through an initiative called Pankh by TRRAIN • Chalet Hotels Limited training 40 young people • Targeting to train ~100 individuals by the end of FY20 TRRAIN is a public charitable trust formed in 2
Slide 17: Awards & Certifications
Awards & Certifications Loved By Guest Award Winner 2019 - Expedia – Four Points by Sheraton, Vashi USGB Gold Leed Certification – JW Marriot Mumbai Sahar Most Luxurious Spa Treatment 2019 - Marriott Whitefield Bengaluru – J W Marriott Mumbai Sahar Best Business Hotel in Maharashtra Business Leaders
Slide 18: The Board of Directors
The Board of Directors Independent Chairman #1 8 6 1 5 3 #5 #2 Promoter Directors 4 2 7 #6 Independent #3 Directors #7 In the order of Standing (Left to Right) #4 Executive Directors Rajeev Newar Neel Raheja Hetal Gandhi Ravi Raheja Joseph Conrad D’Souza Executive Director & CFO Non-Executive Direct
Slide 19: Clear Strategy to Drive Future Growth
Clear Strategy to Drive Future Growth Active Asset Accretive Prudent Capital Management Acquisitions Allocation Pipeline Rebranding Opportunities 1 1 The Westin Hyderabad Mindspace: Dec 31 2021; Renaissance Mumbai Convention Centre Hotel and Lakeside Chalet, Mumbai-Marriott Executive Apartments Powa
Slide 20: Business Performance
Business Performance 20
Slide 21: Consolidated Profit / Loss Statement
Consolidated Profit / Loss Statement (In Rs. Mn) CAGR Particulars H1FY20 FY19 FY18 FY17 FY17-FY19 Revenue from Operations 4,756 9,872 7,955 6,803 20.5% Hospitality the leading Other income 110 476 557 2,187 business driver Total Income 4,867 10,348 8,513 8,990 7.3% (Total Income FY19) Total Expendit
Slide 22: Hospitality Portfolio Performance
Hospitality Portfolio Performance ADR (Rs.) Occupancy % (In Rs. Mn) 8,218 76% 75% 7,947 73% 7,822 7,840 67% FY17 FY18 FY19 H1FY20 FY17 FY18 FY19 H1FY20 Revenue Segment Profit* 3,720 8,395 9,137 3,399 6,807 2,476 4,244 1,602 FY17 FY18 FY19 H1FY20 FY17 FY18 FY191 H1FY20 * Segment Profit before Interes
Slide 23: Hospitality: Driving Returns
Hospitality: Driving Returns Combined with efficient Delivering Robust Improving Profitability development cost Return Ratios (In Rs. Mn) Segment Profit* Per Key Segment Profit* Margin ROCE 2 40.7% 18% 1.6 40.5% 16% 1.5 1.1 12% 36.4% FY17 FY18 FY19 1 FY17 FY18 FY19 1 FY17 FY18 FY19 * Segment Profit
Slide 24: Retail & Office Space
Retail & Office Space (In Rs. Mn) Revenue Segment Profit* Margin % 64% 459 296 391 241 24% 93 19% 22% 141 70 27 FY17 FY18 FY19 H1FY20 FY17 FY18 FY19 H1FY20 FY17 FY18 FY19 H1FY20 The Orb at Sahar jumjoji – The Orb Dragonfly – The Orb * Segment Profit before Interest Depreciation and Tax Includes Stra
Slide 25: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement (In Rs. Mn) Particulars Sep 30, 2019 March 31, 2019 March 31, 2018 Fixed Assets 20,131 20,492 21,211 Capital Work in-progress 498 342 218 Investment Property 6,951 6,810 6,737 Goodwill 226 226 226 Other Non-Current assets 1,828 1,735 1,711 Current Assets 1 5,923
Slide 26: Debt Position
Debt Position 27,093 (In Rs. Mn) 22,173 14,942 14,494 13,141 12,706 4,920 1,801 1,788 Mar-18 Mar-19 Sep-19 ECB Loans Rupee Loan Consolidated March 31, 2018 March 31, 2019 Sep 30, 2019 Total Debt / Equity 5.5 1.0 1.0 Total Debt / EBITDA 9.0 4.1 - USD:INR Conversion rate used 65.04 69.17 70.69 Excludi
Slide 27: H1FY20 Performance
H1FY20 Performance 27
Slide 28: Consolidated H1FY19 Performance
Consolidated H1FY19 Performance (In Rs. Mn) Total Income * EBITDA** Margin % PBT 5,028 1,721 405 4,867 35.4% 1,412 28.1% (583) H1FY19** H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 * Treasury income lower by Rs 103 mn **Includes Exchange loss of Rs 389 Mn (CY NIL) 28
Slide 29: Highlights of the April – September 2019
Highlights of the April – September 2019 Industry Industry • Impact of Elections • Positive demand supply arbitrage • General economic slowdown • Shutting down of a major airline • Extended and disruptive Monsoon Chalet Hotels Limited Chalet Hotels Limited • ADR driven RevPAR growth • Lower Banquet
Slide 30: Hospitality City-wise performance
Hospitality City-wise performance H1FY20 Revenue Rs 4,244 Mn H1FY20 H1FY19 YoY% FY19 ADR (Rs.) Bengaluru MMR 7,735 7,558 2% 8,086 19% Bengaluru 8,686 8,442 3% 8,756 Hyderabad Hyderabad 7,967 7,713 3% 8,205 MMR 62% 19% Combined 7,947 7,742 3% 8,218 Occupancy % MMR 73.6% 73.7% -10 bps 76% Bengaluru 79
Slide 31: Hospitality Segment H1FY20
Hospitality Segment H1FY20 (In Rs. Mn) Revenue Segment Profit* Margin % Revenue Break-up H1FY20 37.7% 4,244 4,244 1,602 30.0% 1,272 F&B 31% Room 60% Others H1FY19 H1FY20 H1FY19 ** H1FY20 H1FY19 H1FY20 9% * Segment Profit before Interest Depreciation and Tax ** Includes Exchange loss of Rs 367 Mn (CY
Slide 32: Retail & Office Space H1FY20
Retail & Office Space H1FY20 (In Rs. Mn) Revenue Segment Profit* Margin % 459 64% Updates: 296 • SLM impact Rs 270 mn (PY: Rs. 31 mn) 170 26% 45 • Sahar Office Tower • Phase 1: Fit-outs completed and occupancy H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 achieved • Two-third occupied • The Orb - Sahar
Slide 33: Consolidated Profit / Loss Statement
Consolidated Profit / Loss Statement (In Rs. Mn) Particulars H1FY20 H1FY19 YoY% FY19 Total Income 4,867 5,028 -3% 10,348 Total Expenditure 3,146 3,616^ -13% 6,679 EBITDA 1,721 1,412 22% 3,668 Margin % 35.4% 28.1% 35.5% Depreciation and Amortisation 565 569 1,154 Finance costs 726 1,399 -48% 2,657 Ex
Slide 34: Disclaimer
Disclaimer This release has been prepared by Chalet Hotels Ltd (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 reas
Slide 35: Thankyou
Thankyou Investor Relations Contact: Ruchi Rudra E-mail: ruchi.rudra@chalethotels.com / investorrelations@chalethotels.com Phone: 022 2656 4000 /4332 Chalet Hotels Limited Raheja Towers, 4th Floor, Block G, BKC, Mumbai 400 051 35
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