Chalet Hotels Q3 net loss widens to Rs144cr; Stock ends lower

28 Jan 2022 , 03:52 PM

Chalet Hotels Limited, owner, developer, and asset manager of high-end hotels in key metro cities in India, announced results for the third quarter and nine months ending December 31, 2021. The company posted a loss of Rs144cr in Q3FY22 widening from Rs138cr in Q2FY22.

The company’s total income grew by 21% qoq to Rs165.7cr as compared to 137.4cr in Q2FY22. EBITDA (from continuing operations) was at Rs41.9cr, a decline of 6% qoq from Rs44.8cr in Q2FY22. Adjusted EBITDA at Rs47.4cr, up 81% qoq from Rs26.1cr.

Chalet Hotels Ltd ended at Rs234.65 per piece down by Rs7.2 or 2.98% from its previous closing of Rs241.85 per piece on the BSE.

The Board of directors 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

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.”