Chalet Hotels Ltd. · NSE:CHALET
Chalet Hotels — Investor Presentation (June 2024)
34 slides from Chalet Hotels's investor presentation, Jun 6, 2024
Slide 1: Exchange filing cover letter
June 6, 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: Corp
Slide 2: Corporate Presentation June 2024
CHALET HOTELS LIMITED CORPORATE PRESENTATION June 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 in last 12 months* FY23 to 43.8% in FY24 ▪
Slide 7: Milestones achieved during the year – FY24
Milestones achieved during the year – FY24 ESG Wins Business Performance Portfolio Expansion ESG Wins Best Q4 & Fiscal ever 418 keys added 3 msf green footprint ✓ Revenue Rs.4.2 bn & Rs. 14.4 bn • New launch - 168 keys All women run DJSI Score of 57 ✓ EBITDA Rs. 1.9 bn & Rs. 6.0 bn Placed 8th in the
Slide 8: 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 7
Slide 9: 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 10: 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 11: Real-estate Development in Bengaluru
Real-estate Development in Bengaluru Avg sales price As of Mar’24 (Msf) No. of Units (psf) Residential (A+B) 0.85 321 Sold in FY24 0.29 121 18,839 Total sales till date (A) 0.57 204 Unsold (B) 0.29 117 Commercial 0.15 9 2 Rs. 3,196 Mn 1 Residential Towers close to New Residential Towers Receivables
Slide 12: Poised to Benefit from Industry Trends
Poised to Benefit from Industry Trends 11
Slide 13: 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 14: 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 15: 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 14
Slide 16: 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 17: 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 18: Active Asset Management & Operating Model
Active Asset Management & Operating Model 17
Slide 19: Q4FY24 - Consolidated Performance Highlights
Q4FY24 - Consolidated Performance Highlights Best quarter ever – Highest Revenue, EBITDA & PAT In Rs. Mn. REVENUE ADJUSTED EBITDA PAT 23% 23% 2.25x 4,244 824 3,799 1,971 706 3,458 1,722 1,603 366 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24* Q4FY23 Q3FY24 Q4FY24 YoY *Q4FY24 EBITDA Adjusted towards one-
Slide 20: Hospitality: Best Q4 & Fiscal
Hospitality: Best Q4 & Fiscal In Rs. Mn. Revenue Revenue Room Q4FY23 1,922 946 3,097 Room F&B FY23 6,157 3,386 10,284 F&B Q3FY24 2,054 1,134 3,434 Other Other FY24 7,993 4,009 12,930 Q4FY24 2,379 1,190 3,830 Total Total 24% 26% EBITDA EBITDA Q4FY23 1,472 FY23 4,321 Q3FY24 1,589 FY24 5,742 Q4FY24 1,8
Slide 21: Hospitality: Key Metrics
Hospitality: Key Metrics Q4FY24 Q4FY23 YoY% FY24 FY23 YoY% ADR (Rs.) Same store MMR 12,173 11,976 2% 11,121 9,741 14% Q4FY24 ADR Others* 11,474 10,228 12% 10,188 8,277 23% at Rs. 12,159 Combined 11,862 11,304 5% 10,718 9,169 17% up by 8% Occupancy (%) MMR 81% 77% 4 pp 77% 74% 3 pp Others* 70% 70% 1
Slide 22: Hospitality: Enhanced Efficiencies
Hospitality: Enhanced Efficiencies Total expenses % of Revenue 58.0% 55.6% 52.2% 52.5% Q4FY24 Q4FY23 FY24 FY23 Staff to room ratio* Utilities % of Revenue Payroll Costs % of Revenue 0.93 0.93 12.8% 12.2% 11.9% 5.8% 10.6% 5.2% 4.1% 4.6% Mar-24 Mar-23 Q4FY24 Q4FY23 FY24 FY23 Q4FY24 Q4FY23 FY24 FY23 *I
Slide 23: 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 24: Rental/Annuity: Performance Highlights
Rental/Annuity: Performance Highlights Msf. (Rs. Mn.) Q4FY24 FY24 FY23 Total Revenue 354 1,241 1,000 2.4 EBITDA 272 988 838 1.2* EBITDA% 77% 80% 84% 1.1 0.5 New towers under leasing Mar' 23 Mar' 24 Leasable Area Leased Area Artists’ rendering * Leasing for 0.7 mn CIGNUS Whitefield Bengaluru started
Slide 25: 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 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 65% 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 65% of its The Company is strategically investing All our operational assets are equipped electricity from renewable sources in technology and IoT-enabled with EV charging points acces
Slide 28: Chalet's Pipeline: Growth From Quality Development & Acquisitions
Chalet’s Pipeline : Growth From Quality Development & Acquisitions leading to Value Creation 27
Slide 29: Hospitality Pipeline
Hospitality Pipeline 3,917 Keys 3,637 Keys ~865 3,247 Keys rooms 3,052 Keys 2,634 Keys Mar 2023 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
Slide 30: Rental/Annuity: Growth and Announced pipeline
Rental/Annuity: Growth and Announced pipeline 3.3 msf 37% 2.4 msf 1.2 msf Mar’23 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: Profit & Loss Statement
Profit & Loss Statement Particulars (Consolidated) (in Rs. Mn) FY21 FY22 FY23 FY24 ADR 4,039.52 4,576.35 9,168.61 10,718.44 Occupancy 30.05% 51.45% 72.04% 72.55% RevPAR 1,213.61 2,354.53 6,604.71 7,776.23 Total Income 3,075.20 5,297.39 11,779.79 14,370.41 Total Expenditure 2,785.16 4,093.30 6,756.50
Slide 32: Strong Balance Sheet
Strong Balance Sheet Successfully raised Rs. 10 Bn Net Debt Rs. Bn QIP concluded on April 03rd 2024 -9 • Funds utilized for paring down debt – Rs. 9 Bn • General corporate purposes & issue expenses – Rs. 1 Bn 31
Slide 33: Capex / Debt Position
Capex / Debt Position in Rs. Mn Mar-22 Mar-23 Mar-24 Net Debt 22,338 24,368 25,086 Investment Outflow YTD # 3,489 5,985 6,596 Interest Rate (%) 7.52 8.75 8.9 Capital Employed 35,821 38,531 38,368 Total investments in excess of INR 15 Bn while the Net worth 13,410 15,415 18,509 corresponding increase
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