Hospitality arm of K Raheja Corp Group plans Rs. 2,000 crore IPO

Chalet Hotels Limited, a subsidiary of K Raheja Corporation, owns and operates a chain of luxury and upscale hotels situated in prominent Indian cities.

K Raheja Corp group is India's leading real estate developers. The proposed Rs. 2,000 crore IPO is expected to hit the equity markets in October, reported a leading business daily citing bankers.

The company's premier hotel assets are held under Chalet Hotels Private Limited. It operates hotel and apartment units with over 288 rooms. The properties owned by Chalet Hotels include Lakeside Chalet Marriott Apartments and Renaissance Mumbai Hotel, Four Points by Sheraton, Navi Mumbai; Westin, Hyderabad; JW Marriott, Sahar and Bengaluru Marriott Hotel, Whitefield.

Beside, Chalet Hotels has a large asset base with land banks. The company has a steady cash flow from the existing properties and enjoys the legacy of real estate development experience from its parent K Raheja Corp. Also the company benefits from its partnership with renowned global hospitality brand Marriot.

During FY2017, the company's portfolio of hotels registered a blended occupancy of 67 per cent and Average Room Rate (ARR) of Rs. 7,675, reporting a 12 per cent year on year growth in Revenue Per Available Room (RevPAR) at Rs. 5,142. For FY2017, Chalet Hotels' standalone PAT was at Rs. 73.67 crore on an operating income of Rs. 643.19 crore, compared to a net loss of Rs. 204.85 crore for an operating income of Rs. 572.74 crore, in FY2016.