Chalet Hotels revenue jumps 21.3% in FY25 but profit drops on higher expenses and tax adjustments | Company Business News

Chalet Hotels Limited, backed by real estate company K Raheja Corp and owner of notable properties such as JW Marriott Mumbai, Sahar, and Westin Powai, reported strong revenue growth for FY25. However, net profit declined owing to higher operating expenses and one-time tax adjustments. 

The company’s revenue from operations rose to ₹1,717.8 crore, a 21.3% increase from ₹1,417.2 crore in FY24. However, profit after tax dropped to ₹142.3 crore, a 48.8% decrease from ₹277.3 crore the previous year.

The dip in profit was largely driven by an increase in employee benefit expenses, higher power and fuel costs, and greater consumption of operating supplies. Depreciation and finance costs also rose during the year. 

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However, segment revenue from the hotels business grew substantially – when compared to real estate, rentals and other unallocated businesses – to ₹189 crore in Q4FY25 from ₹151 crore in Q4FY24, and to ₹544.7 crore in FY25 from ₹459.3 crore in FY24.

Ebitda for the year was ₹772.19 crore, compared to ₹604.38 crore in the previous year, marking a significant 27.8% increase. This growth highlights improved profitability, which could be due to increased revenue, better cost management, or a combination of both. The rise in Ebitda suggests the company has been able to generate more operating profit despite challenges such as rising expenses.

In addition, a change in capital gains tax rules announced in August 2024 led the company to reverse tax credits worth ₹202.17 crore in the September quarter, impacting its profit and loss statement. This followed the government’s decision to withdraw the indexation benefit, which earlier allowed companies to adjust the purchase price of assets for inflation to lower taxable gains. Chalet also reversed a deferred tax liability of ₹55.36 crore related to land revaluation, adjusting it in retained earnings under the new tax regime.

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Sanjay Sethi, MD & CEO, Chalet Hotels Limited, said in a statement, “Our entry into Goa and Rishikesh markets reflects our strategy of strengthening our portfolio and diversifying our customer mix. For the year ahead, we aim to drive strong revenue growth whilst deepening our operational efficiencies, maintaining a sharp focus on executing our expansion pipeline. We are equally excited to work on the acquisition of the new land parcel in North Goa.”

Expansion plan

In December 2024 Mint reported that Chalet Hotels planned to add 1,000 new rooms in key cities over the next few years, expanding its capacity by about a third. This growth will come through acquisitions and new developments, with a focus on metro cities. It will fund the expansion through internal accruals. Managing director Sanjay Sethi said there was strong demand for hotel rooms, pointing out that while the supply of new rooms remains slow, the need for accommodation in India’s hospitality sector is still very high.

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In February 2025, Chalet Hotels acquired The Westin Resort & Spa, Himalayas in Rishikesh to expand its luxury footprint. The company bought the 141-room luxury property on the foothills of Uttarakhand from Mahananda Spa and Resorts, a subsidiary of Mankind Pharma Ltd, for ₹530 crore, subject to adjustments for net current assets. This was its second purchase from the Mankind Pharma family. The first was Courtyard By Marriott, Aravali, in Faridabad, Delhi NCR in May 2024.

India has about 200,000 organised hotels, a number that’s expected to grow to 300,000 by 2030.