Chalet Hotels delivers strong Q3 FY26 growth driven by hospitality and annuity assets

Consolidated revenue rises 27% year-on-year

Chalet Hotels Limited reported a robust financial performance for the third quarter of FY26, ended December 31, 2025, supported by sustained demand across its hospitality portfolio and steady growth in its annuity-led commercial real estate business. Consolidated revenue for the quarter stood at ₹5.9 billion, reflecting a 27 percent year-on-year increase, while consolidated EBITDA rose 29 percent to ₹2.7 billion.

EBITDA margin expansion and profit growth

The company’s consolidated EBITDA margin expanded to 46.3 percent, improving by 76 basis points compared to the same quarter last year, driven by pricing strength and operating leverage. Profit before tax increased sharply by 41 percent year on year to ₹1.7 billion, while net profit rose 29 percent to ₹1.2 billion, despite a higher tax outgo. Earnings per share for the quarter stood at ₹5.67.

Hospitality business remains the primary growth engine

Hospitality continued to anchor overall performance, with segment revenue increasing 23 percent year on year to ₹4.9 billion. The growth was supported by a 16 percent rise in average daily rate to ₹14,970 and a 12 percent increase in RevPAR to ₹10,162. Occupancy remained resilient at 68 percent, even as renovations at Four Points by Sheraton Vashi and construction activity at Powai temporarily affected Mumbai Metropolitan Region performance.

Portfolio additions and new asset ramp-up

During the first half of FY26, Chalet Hotels added 129 keys in Bengaluru, while the 147-key Athiva Resort & Spa, Khandala became fully operational from mid-November 2025. Q3 FY26 marked the property’s first full quarter of operations, with early performance indicating positive guest traction and contribution to portfolio revenue.

Commercial real estate strengthens annuity income

The rental and annuity segment continued to deliver stable cash flows. Segment revenue rose 29 percent year on year to ₹744 million, supported by incremental leasing at Powai, Mumbai. EBITDA from this segment increased 37 percent to ₹621 million, with margins improving to 83.5 percent. Approximately 150,000 square feet of additional leasing, including letters of intent, was achieved during the quarter.

Development pipeline and strategic initiatives

Construction of The Taj at Delhi Airport remains on track, with completion expected by Q4 FY27, while Cignus II, the second commercial tower at The Westin Powai Lake, is scheduled for completion in FY27. During the quarter, the company also completed the rebranding of Courtyard by Marriott Aravali Resort to Aravali Marriott Resort & Spa, Delhi-NCR, and was certified as a Great Place to Work for the seventh consecutive year, reinforcing its focus on workforce stability.

Management outlook

Commenting on the results, Managing Director and CEO Shwetank Singh highlighted strong traction across operating metrics, driven by double-digit RevPAR growth and sustained demand from leisure, MICE, and wedding segments. He expressed confidence in maintaining operating momentum in the coming quarters, supported by portfolio expansion and demand visibility.