Chalet Hotels Ltd.

Incorporated in 1986, Mumbai based Chalet Hotels Limited is a company engaged in the business of owning, developing and asset management of high-end hotels in major metro cities across India. It is a part of K. Raheja Corp group which is a leading business group in the country.The company's hotels are currently branded with global hospitality brands such as JW Marriott, Westin, Marriott, Marriott Executive Apartments etc. Its hotel platform includes 5 operating hotels located in the Mumbai Metropolitan Region, Hyderabad and Bengaluru.The total revenue of the company was Rs 9,295.14 million for 2018, and the total revenue grew at a CAGR of 14.83% between 2014 and 2018. Chalet Hotels Key HighlightsInternational tie-ups with Marriott and relationships. The Chalet Hotels was the first partner in India for Marriott 20 yrs ago.Locations of the cities and location within micro-cityActive asset manager modelEBITDA CAGR double-digit growthRoCe ratio positiveValuation ratios comparable to Indian Hotels (Taj) in terms of Price to Book Value or EV/ EBITDA and P/E lower than that of Lemon TreeDemand (FY18-22: 12%) growth outpacing supply growth (FY18-22: 7%)Occupancies have reached 75% for Chalet portfolio - ARR growth to followChalet EBIDTA (FY18) at 41% Vs industry (All India 5 star Deluxe Average) is at 34%Highest return on capital - Lower per room construction costJW Sahar built at Rs 1.4 Crs per key (1,100 sq ft per key)Most hotels are built at the higher cost (average of 1,500 - 2,000 sq ft per key)Renovation cost of Rs 15 lacs per key at Renaissance Vs others at over Rs 1 cr per keyConsolidated land spend Rs 208 crs vs others much higherReturns to key investors:HDFC returns (1999 - 2012) - IRR 14.46%IDFC returns (2012 - 2015) - IRR 12.73%Shoppers stop returns: (Since IPO) - 7.9%Annualized EBIDTAFY20 - Rs 500 CrsFY22 - Rs 700 Crs Competitive Strengths of the Company1. Luxury upscale properties located in major metro cities2. Part of K. Raheja Corp group3. An active asset management model

Chalet Hotels Ltd. proposes to utilise the net proceeds from the Issue for the following objects: