Chalet Hotels will continue to invest in large inventory hotels

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₹2,000 crore as current capital work-in-progress, the expansion will increase its total room count to 5,000 in the next three to four years. Sanjay Sethi, the company's managing director and chief executive, told Mint that Chalet Hotels' strategy hinges on capitalizing on demand generated by office spaces in proximity to their hotel properties, ensuring a robust and continuous customer base. In an industry trend moving towards reduced asset ownership and a focus on hotel management, Sethi said that Chalet Hotels stands out by pursuing growth in both its balance sheet and Ebitda (earnings before income, tax, depreciation, and amortization).

"We delivered high Ebitda margins purely because of strategies like having different hotel operators to work with," he said. For the first nine months of the current fiscal year (April-December), the company reported a net profit of ₹195 crore, an increase of 33% year-on-year. “Hotels make money, and especially in good cycles like the one that is currently going on.

In fact, they make a lot of money, if the location and operator is right," Sethi said. He attributed the company's success over two decades to its investment in asset-intensive, large-scale hotels located in prime markets of tier-one and emerging cities. Chalet Hotels boasts collaborations with operators such as Accor, Marriott, Hyatt, and Taj, managing properties including the JW Marriott Mumbai Sahar, Four Points by Sheraton Navi Mumbai, The Westin Hyderabad Mindspace, and Bengaluru Marriott Hotel Whitefield, among others.