K Raheja Corp-backed Chalet Hotels Limited is expanding its focus to deeper leisure markets including Jaipur, Jodhpur, and Pune, while evaluating opportunities in Hyderabad's financial district. According to reports from Mint, managing director and CEO Shwetank Singh stated the company is scaling steadily across city hotels, airport properties and leisure resorts as demand continues to outpace supply despite short-term disruptions. The underlying demand-supply story remains strong with demand growing faster than supply, driving healthy RevPAR (revenue per available room) expansion across key markets.
Chalet Hotels reported FY26 revenue of ₹2,769.75 crore, up about 61% from ₹1,717.8 crore in the previous year. Net profit rose significantly to ₹645.3 crore from ₹142.3 crore in FY25. In Q4, the company achieved an average room rate of ₹15,456, up 8% year-on-year, though average occupancy stood at 68%, down 7.7 percentage points from Q4 FY25. The company currently operates 3,389 keys under brands such as JW Marriott, The Westin and Novotel, with 1,655 rooms under development.
A key part of Chalet's strategy is increasing exposure to leisure-led destinations, particularly drive-to markets within 1.5-2 hours of major airports. According to Mint, Singh noted that Jaipur and Jodhpur offer strong domestic tourism demand and relatively stable occupancy cycles compared to metro city hotels. The company's leisure portfolio already includes properties in Goa, and in February 2025, it acquired The Westin Resort & Spa Himalayas in Rishikesh for ₹530 crore. A year earlier, it bought the 158-room Marriott Aravali Resort for ₹315 crore.
Operational performance in some city clusters remains uneven, particularly in Mumbai's airport micro-market where new luxury supply has risen sharply. As reported by Mint, Singh noted that new supply has impacted demand flows across the micro-market. Despite these challenges, the company remains bullish on the long-term outlook, with Singh stating there will be short-term shocks but post-COVID, there is no stopping the industry. India's hospitality sector is expanding steadily, with branded inventory expected to cross 350,000 rooms by FY30.
The company's upcoming pipeline includes the Taj Delhi International Airport hotel, slated to open in Q4 FY27, while the Ritz-Carlton Hyderabad and Hyatt Regency Airoli remain under construction in FY27. Most projects are structured through group-linked land parcels or partnership models to reduce acquisition risk. Despite an aggressive expansion cycle, Singh emphasized that growth remains largely self-funded, stating the company is not restricted by capital but by clean capital discipline. The company's commercial real estate portfolio also maintained strong momentum with rental income continuing to scale steadily throughout the year.
