Chalet Hotels revenues rose 21.3% in fiscal 25, but profits dropped higher fees and tax adjustments

Chalet Hotels Limited, supported by real estate company K Raheja Corp, and owners of prominent properties such as JW Marriott, Mumbai, Sahar and Westin Powai, reported strong revenue growth in fiscal 25 years. However, net profit fell due to higher operating expenses and one-time tax adjustments.

The company’s revenue from operations rose to ₹17.178 million, versus ₹14.172 million fiscal year. However, after tax profits fell to ₹142.3 million, 48.8% lower ₹2.773 million in the previous year.

The main reasons for the decline in profits are increased employee welfare expenses, higher power and fuel costs, and more operational supply consumption. Depreciation and financial costs also rose during the year.

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However, compared with real estate, rental and other unallocated businesses, the revenue of the hotel business has increased significantly – ₹Q4FY25’s 1.89 million ₹1.51 million in Q4FY24, to ₹FY 54.47 billion FY 25 ₹4.593 million in fiscal year 24.

One year’s EBITDA is ₹77219 million, compared to ₹The previous year’s 6.0438 million marks a significant increase of 27.8%. This growth emphasizes increased profitability, which may be due to increased revenue, better costs, or a combination of both. The rise in EBITDA shows that the company is able to generate more operating profit despite increased expenses.

In addition, changes in capital gains tax rules announced in August 2024 have caused the company to reverse the tax credit ₹20217 million in the September quarter will affect its profit and loss statement. This is after the government’s decision to withdraw the index benefits, which earlier allowed companies to adjust the purchase price of inflation to reduce taxable income. Chalet also reverses deferred tax liability ₹553,600 million is related to land revaluation, which is adjusted according to retained income under the new tax system.

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“Our entry into the Goa and Rishikesh markets reflects our strategy to strengthen our portfolio and diversify our client portfolio. Over the coming year, we aim to increase strong revenue growth to improve our business, which has led to our efforts to expand our efforts to expand, thus making efforts to implement our efforts toward North Goa.”

Expansion Plan

In December 2024, MINT reported that Chalet Hotels plans to add 1,000 new rooms in major cities in the coming years and expand its capacity by about one-third. This growth will focus on metropolitan cities through acquisitions and new developments. It will be expanded through internal accrual funding. Managing Director Sanjay Sethi said there was strong demand for hotel rooms, noting that despite the slow supply of new rooms, the demand for accommodation in the Indian hotel industry remains high.

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In February 2025, Chalet Hotels acquired Westin Resort & Spa in the Himalayas in Rishikesh to expand its luxury footprint. The company purchased 141-room luxury properties from Mahananda Spa and Resorts, a subsidiary of Mahananda Spa and Mankind Pharma Ltd. for use ₹Rs 530 crore, need to adjust the current net assets. This is the second purchase from the human pharmaceutical family. The first is the courtyard at the Alavali Marriott Hotel in Delhi in May 2024.

There are about 200,000 organized hotels in India, which are expected to grow to 300,000 by 2030.