Home News HOSPITALITY EBITDA RS. 367 MN, UP 167% QoQ :Chalet Hotels results announcement

HOSPITALITY EBITDA RS. 367 MN, UP 167% QoQ :Chalet Hotels results announcement

by Our Corresspondent - Jan 27, 2022
HOSPITALITY EBITDA RS. 367 MN, UP 167% QoQ :Chalet Hotels results announcement, News, KonexioNetwork.com

REVPAR AT RS. 3,035 UP 40% QoQ

HOSPITALITY REVENUE RS. 1,420 MN, UP 55% QoQ

HOSPITALITY EBITDA RS. 367 MN, UP 167% QoQ

 

Mumbai : Chalet Hotels Limited, owner, developer, and asset manager of high-end hotels in key metro cities in India, announces its results for the third quarter and nine months ending December 31, 2021.

Highlights for Q3FY22:

  • Total Income grew by 21% to Rs. 1,657 mn as compared to Q2FY22
  • EBITDA (from continuing operations) was at Rs. 419 mn
  • Hospitality segment performance as compared to Q2FY22:

          o   Revenue growth for Q3FY22 was 54%

         o   REVPAR for Q3FY22 at Rs. 3,035 up by 40%

         o   Occupancy for Q3FY22 was at 60% as against 56% for Q2FY22 an expansion of 4 PP

  • Retail & Commercial segment (Incl Discontinued) : Revenues were at Rs. 221 mn with EBITDA at Rs. 175 mn for Q3FY22

The Board of directors today approved the change in the use of the proposed new 150 room Hotel at Renaissance Complex Powai to a Commercial office space. The decision was taken after evaluation of the demand dynamics for Hospitality and office rental segments within the market. The project can potentially have ~0.75 mn sqft of leasable area, subject to requisite approvals.

Performance for Q3FY22

                                                                                                                                                           Rs. Million

 

Q3FY22

Q2FY22

Var %

9MFY22

9MFY21

Var %

Total Income

1,657

1,374

21%

3,762

2,086

80%

EBITDA

419

448

(6%)

835

229

264%

Adj EBITDA*

474

261

82%

758

158

380%

PAT

(144)

(138)

 

(700)

(1,131)

 


*Notes:

1.  Q3FY22: Rs. 54 mn has been considered for expenses towards repurposing to commercial and asset write off for the same

2.  Q2FY22:

     1.  Received Rs. 161 mn on early contract termination of a commercial tenant, accounted under revenue

     2.  Received a rebate amounting to Rs. 4.6 mn from a hotel operator in respect of past disputed liability, accounted as "Other Income"

    3.   Cancellation of 3 flats for the residential project: Interest paid of Rs. 34 mn has been accounted as Real Estate Development Cost & exceptional items

   4.    EBITDA includes SEIS Income of Rs. 50 mn

Segmental Performance for Q3FY22

                                                                                                                                                             Rs. Million

 

Q3FY22

Q2FY22

Var %

9MFY22

9MFY21

Var %

Hospitality

 

 

 

 

 

 

Occupancy

60%

56%

4 PP

50%

27%

23 PP

RevPAR (Rs.)

3,035

2,161

40%

2,153

1,084

99%

Revenue

1,420

919

55%

2,837

1,297

119%

EBITDA

367

138

167%

413

(232)

 

Retail & Commercial (Incl Discontinued)

 

 

 

 

 

 

Revenue

221

377

(41%)

664

668

(1%)

EBITDA

175

326

(46%)

532

509

4%


Development Pipeline Update:

  • Company’s project comprising of residential buildings and a commercial building for strata sale at Koramangala Bengaluru is at development approval stage and expected to be completed by FY26
  • The commercial project at Renaissance Complex, Powai, Mumbai is on track, and scheduled to be completed by Q4FY23
  • Due to change in project specification and other lockdown related delays the completion of the commercial project at Marriott Complex, Whitefield, Bengaluru may get delayed by a quarter, from the earlier target of Q4FY22
  • Re-purposing of retail space at Whitefield Bengaluru to commercial space is underway, scheduled to be completed by Q3FY23. The re-purposing of The Orb at Sahar Mumbai is in its leasing stage.
  • Shortly to commence of work on the partly built 88 rooms in Novotel Nagar Road Pune (existing 223 rooms), with launch expected in early H2FY23
  • We continue to evaluate the demand dynamics to assess the opening of the new hotel in Hyderabad

Speaking on the results, Mr. Sanjay Sethi, MD & CEO, Chalet Hotels Limited, said, “The 3rd quarter saw the hospitality segment demonstrating strong recovery with segment revenue growing QoQ by 55% and segment EBIDTA was up 167%. Sweating of real estate assets in our balance sheet and repurposing underperforming assets are expected to be P&L accretive.

The impact from the 3rd wave has been lower and the pick-up is likely to be faster than the earlier waves giving visibility of full recovery in the near future. Throughout these challenging times, Chalet has diligently focused on its core business strategy of prudent capital & asset management and ESG commitments, paving the way for long term returns.”