800-plus rooms by 2021

K Ra­heja Corp’s hos­pi­tal­ity com­pany has am­bi­tious growth plans through both green­field and brown­field ac­qui­si­tions apart from adding about 800-odd rooms by 2021.

TravTalk - India - - HOTELS -

San­jay Sethi, Man­ag­ing Di­rec­tor & CEO, Chalet Ho­tels, is back with Chalet Ho­tels in Mum­bai af­ter just a six-month stint at ITC Ho­tels. Pick­ing up from where he left off, Sethi sounds ex­tremely up­beat about the com­ing year. “We have about four ho­tels un­der de­vel­op­ment right now. Th­ese will add roughly about 800 more rooms to our cur­rent port­fo­lio of 2800-odd rooms. Th­ese will take about two to three years to build,” Sethi re­veals.

Chalet Ho­tels cur­rently has about eight ho­tels, of which seven are owned by Chalet Ho­tels 100 per cent and op­er­ated by Mar­riott. One out of the eight is run by Chalet Ho­tels. Speak­ing about the route that the ho­tel com­pany will take for growth, Sethi says, “We have am­bi­tious plans. We are look­ing at ac­qui­si­tion op­por­tu­ni­ties in the mar­ket and we want to grow through both green­field and brown­field ac­qui­si­tions.”

While chart­ing th­ese plans, Chalet Ho­tels will stay true to its port­fo­lio which is largely up­per, up­scale and lux­ury seg­ments. “We are also look­ing at up­scale as­sets. We are do­ing a cou­ple of de­vel­op­ments in that seg­ment. We will stay in the up­scale and up­per up­scale be­cause that’s a sweet spot for us. We might do se­lect lux­ury, or mid-seg­ment ho­tels as well,” Sethi adds. Sethi feels that the ho­tel com­pany is in for a good run. “The in­dus­try is likely to do ex­tremely well, given the macro-dy­nam­ics of the busi­ness. The de­mand-sup­ply sit­u­a­tion is look­ing favourable for a healthy growth. I think we have a good five to six-year run, not tak­ing into con­sid­er­a­tion the healthy growth that we pre­dict on ac­count of the re­cent eco­nomic ac­tiv­i­ties. We still think we will grow at about eight to nine per cent. And if things go pos­i­tive on that side, we might even touch low teens,” he pre­dicts. For the year ended March 2017, Chalet Ho­tels’ turnover for its to­tal seven ho­tels stood at 950 crore with earn­ings be­fore in­ter­est, de­pre­ci­a­tion, tax and amor­ti­sa­tion (EBIDTA) of 350 crore. Af­ter in­clud­ing the per­for­mance of the com­pany’s co-owned ho­tel in Juhu, the turnover stood at 1,100 crore and EBIDTA at ` 400 crore.

Th­ese will add roughly about 800 more rooms to our cur­rent port­fo­lio of 2800-odd rooms. Th­ese will take about two to three years to build

San­jay Sethi Man­ag­ing Di­rec­tor & CEO Chalet Ho­tels

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