Chalet Hotels To See Double-Digit Revenue Growth In FY25: CEO Sanjay Sethi
Sanjay Sethi also projected a 10% compound annual growth rate for the industry.
Chalet Hotels Ltd. is set to log double-digit growth in the Revenue Per Available Room and total revenue in fiscal 2025, according to Managing Director and Chief Executive Officer Sanjay Sethi.
Speaking to NDTV Profit, Sethi highlighted that the growth expectation is driven by a big gap between demand and supply in the hospitality industry, with demand overriding supply. Upbeat about the encouraging second quarter numbers, he expected the trend to continue in the remaining fiscal.
“Double-digit RevPAR growth or total revenue growth is pretty much on the cards (for FY25), given that there’s a massive gap in demand and supply, favouring demand. Pan India, demand is expected to outstrip supply by roughly around 260 basis points. On the back of favourable demand and supply arbitrage, we expect the industry to do very well and Chalet to be one of the leaders on that front,” he said.
Sethi also projected a 10% compound annual growth rate for the industry.
Chalet Hotels Ltd. recently acquired freehold land in Goa, with plans to build a 5-star luxury hotel. The property will add 170 rooms to the company's existing capacity.
“Our pipeline now has gone up to a little over 1,000 rooms and we operate around 3,050 rooms. Between pipeline and operations, we are already more than 4,000 rooms,” Sethi said.
The land parcel in Goa already had a majority of approvals (to build the hotel) in place as part of the deal, he noted. “We should be off the ground fairly quickly, in a quarter or two. But it will take around two and a half to three years to build it out there,” the top executive said.
