Chalet Hotels Limited

Sanjay Sethi

MANAGING DIRECTOR & CEO

Milind Wadekar

CFO

Ruchi Rudra

BUSINESS STRATEGY & INVESTOR RELATIONS CH A LET HOTELS

50%

d to the first wave indicative of resilience of travel and confidence of the travelers. US have 50% and UK 58% of its total population vaccinated, both are key source geographies for Chalet. The Eu

58%

rst wave indicative of resilience of travel and confidence of the travelers. US have 50% and UK 58% of its total population vaccinated, both are key source geographies for Chalet. The European Unio

36%

eral of them have also announced reopening days. For our overall portfolio April occupancies were 36%, May had a steep drop to 23% occupancies; however, June saw a smart recovery at 47% occupancy. Th

23%

ced reopening days. For our overall portfolio April occupancies were 36%, May had a steep drop to 23% occupancies; however, June saw a smart recovery at 47% occupancy. The month of July continue to f

47%

upancies were 36%, May had a steep drop to 23% occupancies; however, June saw a smart recovery at 47% occupancy. The month of July continue to follow the trend with portfolio occupancies at 54%. The

54%

ry at 47% occupancy. The month of July continue to follow the trend with portfolio occupancies at 54%. The month of July has actually recorded highest revenue, occupancy and RevPAR since the pandemic

131 million

nce of food and CH A LET HOTELS beverage. Contribution from F&B segment was 131 million for Q1 against 273 million for the previous quarter. On the P&L front in Q1 we received a rebat

273 million

CH A LET HOTELS beverage. Contribution from F&B segment was 131 million for Q1 against 273 million for the previous quarter. On the P&L front in Q1 we received a rebate from one of our operators

37 million

P&L front in Q1 we received a rebate from one of our operators on some past disputed liability of 37 million on reimbursements, excluding this the revenue for the quarter was 715 million higher 21% year-on-

715 million

isputed liability of 37 million on reimbursements, excluding this the revenue for the quarter was 715 million higher 21% year-on-year. Milind will take you through some of the details later. Our cost control

21%

f 37 million on reimbursements, excluding this the revenue for the quarter was 715 million higher 21% year-on-year. Milind will take you through some of the details later. Our cost control measures s

46%

ils later. Our cost control measures since the beginning of the pandemic have kept the fixed cost 46% lower as compared to the pre-COVID comparable quarter of Q1 FY2020. For the hospitality division

“Business continues to come from the segments of Bollywood shows, IPL, and social functions and now banking, financial services and project related businesses are showing a strong shoots of recovery.”

“Reported EBITDA for the quarter was negative 31 million this however includes a onetime charge of 94 million for interest payable on cancelation to six flat owners who have decided not to continue with the Koramangala project, as you know these cancelations are funded by the promoters on a cash flow front and we can elaborate this further in the Q&A session.”

“With the conversion of large part of The Orb at Sahar to commercial office space we will be hedging the portfolio of quarter.”

“There has been no new subscription from promoters on zero percent nonconvertible redeemable preference shares for funding the outflow relating to residential project at Koramangala during the period under review.”

“Since we have recommenced negotiations with the flat owners for a new plan a majority of existing owners barring nine have consented to continue with the project.”

“Of these six customers have exited from the project and payments have been made.”

“We are awaiting final clearances from regulatory authorities and court to recommence work at site a suitable announcement will be made for the same once the approvals are in place.”

“Overall our view is that the domestic business travel will be back in Q3 to at least 50% to 60% of pre-COVID numbers, international travel however will probably have a lag of a couple of quarters after that.”

“As a reference we were 1.22 when we listed the company we had come down to a little over 1.1 pre pandemic our target that time was one employee to a room, our fresh target on normalized basis is 0.9 employees to a room and when I say 0.9 I want to emphasize this includes contract employees, fixed term contracts, outsource employees, all of them, this is not just permanent employees.”

“The last question that I had was on our Koramangala project this has been in limbo ever since our IPO I just wanted to get a status update how do we see the pickup in that project, any timelines that you would like to share or at the time of an IPO there were various discussions that we did in terms of what kind of eventual NPV Chalet would realize if there are any indications that you can share that would be very helpful?”

Sanjay Sethi

17

Moderator

6

Milind Wadekar

6

Vikas Ahuja

6

Karan Khanna

5

Aditya Bagul

3

Ruchi Rudra

1

Ruchi Rudra

Good Morning, ladies and gentlemen. Welcome to Q1 FY2022 performance call for Chalet Hotels Limited. We have with us Mr. Sanjay Sethi, the Managing Director & CEO and Mr. Milind Wadekar, our CFO to take you through the performance and respond to your queries. Let me make the usual disclaimer on forward-looking statements and rounding of numbers. Kindly refer to our presentation, which has been made available on the Stock Exchanges and on our website for the details of the same. I now hand over the line to Mr. Sethi to share his opening remarks.

Sanjay Sethi

Thank you Ruchi. Good morning everyone, hope all of you are safe and doing well. As you are aware the second wave swept the nation and impacted businesses in Q1 of this year. The restrictions brought many cities to a standstill and hospitality business was hit hard. On a positive side we have seen a flattening of the curve in June reflecting well on the business. At the onset of the second wave in March 2021 the state of Maharashtra imposed full lockdown from April 4, 2021 till June 7, 2021 literally impacting two thirds of the quarter. Similar lockdowns were witnessed in Karnataka and Telangana also. There has been a phased opening in these states, Hyderabad has opened up a lot quicker, Maharashtra has been slow to open up, and still has restrictions till 4 pm. Now for some good news, the month of June and July saw improving consumer sentiments with sharp pickup in business and leisure segments. We see a similar trend for the month of August, the ramp up in occupancies were stronger p

Milind Wadekar

Thank you Sanjay. Good morning ladies and gentlemen. The first quarter of this year started in the midst of second wave, with resurfacing of lockdowns and our performance reflect the same. Reported revenue for the quarter was 753 million which includes a rebate received from an operating partner of Rs.37 million for past disputed liabilities. Adjusted for this the revenue was at 715 million for the quarter which was sequentially down by 30%. EBITDA for the quarter was negative 31 million which additionally included Rs.94 million on account of interest on cancelation of six flats in Koramangala. Adjusting for these rebates EBITDA for Q1 was positive of Rs.25 million. PBT post charges on depreciation and interest for the company were negative of 638 million as against negative of 475 million in the sequential quarter of Q4. After taking credit for deferred tax asset of 275 million losses after tax was at Rs.363 million. The hospitality segment contributed 66% of the total revenue of the