Chalet Hotels Expects Potential Upside In Occupancy, Tariffs
Supply has reduced from about 10 percent to mid-single digits in the luxury space, says Chalet Hotels.
Chalet Hotels Ltd. expects room for a potential uptick in occupancy and tariffs in the hotel industry due to favourable macroeconomic indicators and higher spending propensity of consumers, its Executive Director and Chief Financial Officer Rajeev Newar said.
The Mumbai-based hotel operator, which got listed on the National Stock Exchange in February this year, deals in upper-mid scale and luxury hospitality services—a segment currently facing supply concerns. “Supply is fairly muted in our segment,” Newar told BloombergQuint, adding that supply has reduced from about 10 percent to mid-single digits in the luxury space. “Considering the demand remains where it is, it is a positive arbitrage for the industry.”
A stagnant supply, according to Newar, is also expected to lead to improved rates and higher revenue per room.
Other Highlights:
- Expects headroom for the customers to pay more
- Maximum supply in the budget and mid-segment
- Chalet Hotels had 75 percent occupancy in the first half of FY19, as compared to about 70 percent industry-wide
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