Chalet Hotels Ltd. · NSE:CHALET
Chalet Hotels — Investor Presentation (March 2024)
35 slides from Chalet Hotels's investor presentation, Mar 5, 2024
Slide 1: Exchange filing cover letter
March 5, 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: Cor
Slide 2: Corporate Presentation March 2024
CHALET HOTELS LIMITED CORPORATE PRESENTATION March 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 3,052 870* 10# 2 1.2 2.0 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 498 keys and 0.7msf office space in the ▪ Improvement in Adjusted EBITDA margins from ~40.41% in operating portfolio in last 12 months* FY23 to 42.69% in 9m F
Slide 7: High-end Hotels Strategically Located in CBDs of Key Metro Cities & leisure locations
High-end Hotels Strategically Located in CBDs of Key Metro Cities & leisure locations 6
Slide 8: 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 LONAVALA NCR N
Slide 9: 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 commenced, CIGNUS Whitefield Bangalore® Tower II handover soon to start 0.3 Mn sq. ft Strategically maximiz
Slide 10: Real-estate Development in Bengaluru
Real-estate Development in Bengaluru Avg Sale Price As of Dec’23 (Msf) No. of Units (Rs/sq ft) Residential (A+B) 0.85 321 Sold in YTD FY24 0.11 42 17,871.45 Total sales till date 0.39 125 10,356.01 (A) Unsold (B) 0.46 196 Commercial 0.15 9 2 Rs. 1,735.76 Mn 1 Commercial Tower Residential Towers clos
Slide 11: Development Pipeline
Development Pipeline New Keys Location Target Completion Date Brownfield Expansions The Dukes Retreat (Renovation and Expansion) ~65-70 Keys Lonavala Q3 FY25 Existing rooms – 80 Bengaluru Marriott Hotel Whitefield ~125 - 130 Keys Bengaluru Q4 FY25 (expansion) Existing rooms – 391 Greenfield Developm
Slide 12: Development Pipeline
Development Pipeline Commercial Leasable area Location Target Completion Date Ready for handovers from CIGNUS Whitefield Bangalore® Tower II 0.3 msf Bengaluru Q4 FY24 Handover to tenants CIGNUS Powai® Tower I 0.9 msf Mumbai beginning shortly CIGNUS Powai® Tower II 0.8 msf Mumbai FY27 Information as
Slide 13: Poised to Benefit from Industry Trends
Poised to Benefit from Industry Trends 12
Slide 14: 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 15: 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 16: 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 15
Slide 17: 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 18: 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 19: Active Asset Management & Operating Model
Active Asset Management & Operating Model 18
Slide 20: Consolidated Performance Highlights
Consolidated Performance Highlights Highest 9 month Revenue and EBITDA In Rs. Mn. REVENUE ADJUSTED EBITDA PAT 22% 40% 38% 43% 37% 33% 11,779.54 4,760.19 1,957.41 10,126.31 4,323.25 1,832.90 8,321.71 1,466.59 3,157.83 FY23 9mFY23 9mFY24 FY23 9mFY23 9mFY24 FY23 9mFY23 9mFY24 EBITDA Margin (%) Note: YT
Slide 21: Hospitality: Performance Highlights
Hospitality: Performance Highlights In Rs. Mn. Revenue ADR (in Rs.) Room 27% 22% 9mFY24 5,614.41 2,823.48 9,099.74 F&B 9,168.61 10,297.79 8,444.42 Other 9mFY23 4,234.60 2,439.45 7,186.63 Total FY23 6,157.02 3,385.90 10,280.93 FY23 9mFY23 9mFY24 Adjusted EBITDA Occupancy (%) 35% 4pp 9mFY24 3,847.21 7
Slide 22: Hospitality: City-wise Performance
Hospitality: City-wise Performance Q3FY24 Q3FY23 YoY% 9MFY24 9MFY23 YoY% FY23 ADR (Rs.) MMR 11,509.71 11,036.63 4.29% 10,746.23 8,972.09 19.77% 9,741.45 Others* 10,234.64 8,817.09 16.08% 9,693.90 7,631.50 27.02% 8,169.91 Combined 10,974.43 10,167.98 7.93% 10,297.79 8,444.42 21.95% 9,168.61 Occupancy
Slide 23: Hospitality: Enhanced Efficiencies
Hospitality: Enhanced Efficiencies EBITDA Margins (%) 42.96% 42.00% 39.64% FY 23 9MFY23 9MFY24 Staff to room ratio* Utilities % of Revenue Payroll Costs % of Revenue 0.93 0.93 0.9 12.23% 12.91% 13.21% 5.84% 6.35% 5.72% Mar-23 Dec-22 Dec-23 FY23 9MFY23 9MFY24 FY23 9MFY23 9MFY24 All the figures above
Slide 24: 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 25: Rental/Annuity: Performance Highlights
Rental/Annuity: Performance Highlights Msf. (Rs. Mn.) Q3FY24 9MFY24 9MFY23 Total Revenue 301.97 887.16 719.06 1.2 EBITDA 250.63 715.46 578.36 0.8 EBITDA% 83.00% 80.65% 80.43% 0.5 0.5 Coming Soon: FY23 Q3FY24* CIGNUS Powai® Tower I - 0.9 msf (0.04 msf leased in Q3FY24) Leasable Area Leased Area CIGNU
Slide 26: Led by an Experienced Board
Led by an Experienced Board Mr. Hetal Gandhi Mr. Arthur De Haast Chairman & Independent Director Independent Director Co-Founder & MD Tano India Advisors Pvt. Ltd. Chairman of JLLs Global Capital Markets Advisory Council Mr. Joseph Conrad D’Souza Ms. Radhika Piramal Independent Director Independent
Slide 27: Our ESG Highlights
Our ESG Highlights ENERGY MANAGEMENT WATER & WASTE MANAGEMENT E Mobility GREEN BUILDINGS 100% 4 USGBC LEED Gold 65% Wet waste treated through Operational assets have EV charging certified properties Organic Waste Composters Renewable energy stations^ Recycling of wastewater The Westin Hyderabad YTD
Slide 28: Climate Change Actions
Climate Change Actions Company has signed up for all the three initiatives of The Climate Group The Company sourced 78% of its The Company is strategically 7 of our operational assets are electricity from renewable sources in investing in technology and IoT- equipped with EV charging points FY23 to
Slide 29: Growth From Quality Development & Acquisitions leading to Value Creation
Chalet’s Pipeline : Growth From Quality Development & Acquisitions leading to Value Creation 28
Slide 30: Hospitality Pipeline
Hospitality Pipeline 3,922 Keys 3,642 Keys ~1,368 3,252 Keys rooms 3,052 Keys 2,554 Keys Dec-22 Mar 01, 2024 FY25 FY26 FY27 + 498 Keys + 200 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 Mum
Slide 31: Rental/Annuity: Growth and Announced pipeline
Rental/Annuity: Growth and Announced pipeline 3.2 msf 2.4 msf ~6.4 x 1.2 msf 0.5 msf Dec’22 Dec’23 FY24 FY27 0.7 msf 1.2 msf 0.8 msf CIGNUS Powai® Tower II 0.7 msf 0.9 msf CIGNUS Whitefield Bangalore® Tower I CIGNUS Powai® Tower I 0.3 msf CIGNUS Whitefield Bangalore® Tower II Focus on maximizing dev
Slide 32: Acquisition Case Study: Dukes Retreat, Lonavala
Acquisition Case Study : Dukes Retreat, Lonavala FY 23 EBITDA: Rs. 130 Mn Enterprise Value – Rs. 1330 Mn (10x trailing EV /EBITDA) Asset under complete renovation Repositioned to an Upper-upscale eco- resort Inventory to increase from 80 to 150 rooms Focus On Prudent Deployment Of Capital To Generat
Slide 33: Profit & Loss Statement
Profit & Loss Statement Particulars (Consolidated) (in Rs. Mn) FY21 FY22 FY23 9MFY23 9MFY24 ADR 4,039.52 4,576.35 9,168.61 8,444.42 10,297.79 Occupancy 30.05% 51.45% 72.04% 71.40% 71.44% RevPAR 1,213.61 2,354.53 6,604.71 6,029.16 7,357.11 Total Income 3,075.20 5,297.39 11,779.54 8,321.71 10,126.31 T
Slide 34: Capex / Debt Position
Capex / Debt Position in Rs. Mn Mar-22 Mar-23 Dec-23 Net Debt 22,338.00 24,368.00 24,054.43 Investment Outflow YTD # 3,488.57 5,985.00 3,000.00 Interest Rate (%) 7.52 8.75 8.74 Capital Employed 35,821.25 38,531.38 41,052.05 Total investments in excess of INR 10,000 Mn while the Net worth 13,409.92 1
Slide 35: 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