Archive · 6 Nov 2025
Chalet Hotels Foresees Strong H2 FY26 Amidst Occupancy and Revenue Growth
Chalet Hotels, a hotel company, made a good profit in the last financial quarter, unlike last year when they lost money.
Their total sales also went up a lot!
Even though fewer people stayed in their hotels recently because they added more rooms and the weather wasn't great for vacations, they expect more people to come in the second half of the year.
This is because there will be more weddings and business trips.
They are also starting a new hotel brand called Athiva to attract younger, richer travelers.
They believe this new brand and the busy wedding season will help their hotels fill up and make more money soon.
Chalet Hotels anticipates strong performance in the second half of FY26, expecting occupancy to exceed 70% and average room rates to increase.
The company reported a consolidated net profit of $154 crore and revenue of ₹743 crore in Q2 FY26, a significant year-on-year increase.
Overall occupancy decreased to 66.7% in Q2 FY26 due to the addition of 166 rooms and external factors impacting the resort business.
Chalet Hotels launched a new brand, Athiva, targeting affluent young travelers, with properties set to transition to this brand.
Management is optimistic that business will normalize in the second half of FY26, leading to higher margins.
- Who
- Chalet Hotels, a K Raheja Corp-owned hotel chain
- What
- Reported a consolidated net profit of $154 crore and revenue of ₹743 crore in Q2 FY26, while expecting strong growth in H2 FY26 and launching a new brand, Athiva.
- When
- Second quarter of FY26, with expectations for the second half of FY26.
- Where
- India (properties in Bengaluru, Khandala, and Mumbai airport mentioned)
- Why
- Anticipates robust growth due to more auspicious wedding dates, stabilization after inventory additions, and the launch of a new brand targeting affluent young travelers.
Chalet Hotels Management
Factors Affecting Recent Performance
Future Occupancy Expectations vs. Current Levels
Chalet Hotels Management
Management anticipates overall occupancy to exceed 70% in the second half of FY26, driven by increased wedding dates and business stabilization.
Factors Affecting Recent Performance
Overall portfolio occupancy dropped to 66.7% in Q2 FY26 due to the addition of new inventory and external factors affecting the resort business.
Impact of New Inventory
Chalet Hotels Management
The addition of 166 rooms in Bengaluru and Khandala is considered a temporary 'blip' that will quickly normalize.
Factors Affecting Recent Performance
The recent addition of 166 rooms has put pressure on individual property performance and contributed to lower overall occupancy.
Performance of JW Marriot Mumbai Airport
Chalet Hotels Management
The hotel has performed well and registered a 3% growth in market share despite competitive pressure.
Factors Affecting Recent Performance
The JW Marriot hotel at Mumbai airport faced competitive pressure due to the opening of new hotels in its vicinity.
- Company
- Chalet Hotels (K Raheja Corp-owned)
- Reporting Period
- Q2 FY26
- Consolidated Net Profit (Q2 FY26)
- $154 crore
- Consolidated Revenue (Q2 FY26)
- ₹743 crore
- Hospitality and Commercial Real Estate Revenue Growth (YoY)
- 20%
- Overall Occupancy (Q2 FY26)
- 66.7%
- New Inventory Added
- 166 rooms
- New Brand Launched
- Athiva