Mumbai, Aug 6 : Chalet Hotels Limited , a hospitality player in India, announced the strategic addition of two new hotel developments to its pipeline. Set to operate under its own brand, ATHIVA, these properties will add 150 keys in Hyderabad and 231 keys in Pune. The additions not only consolidate Chalet’s presence in two of India’s most critical commercial hubs but also accelerate ATHIVA’s journey to becoming a prominent Pan-India premium lifestyle hospitality brand.
The projects shall be leased from SPVs of Mindspace Business Parks REIT under a long-term lease arrangement. The Hyderabad hotel involves the repurposing of an existing building owned by an SPV of Mindspace REIT. As regards the Pune hotel, Mindspace REIT will develop the building structure on a grey shell basis, while Chalet will undertake the balance scope including interior fit-outs. This structure ensures Chalet’s capital expenditure gets deferred to the latter part of the development cycle. Furthermore, this move aligns with Chalet’s overarching strategy of embedding hospitality assets within large-scale business parks, unlocking captive demand from a vibrant mixed-use ecosystem while mitigating site-acquisition risks and expediting time-to-market.
Details of both hotel properties
|
Particulars |
Pune |
Hyderabad |
|
Proposed Brand/ Positioning |
ATHIVA® Upper-Upscale |
ATHIVA® Upper-Upscale |
|
Strategic importance |
This will be Chalet’s 2nd hotel in Pune – demand driven by increasing concentration of GCCs, MICE, global HQ visits, & extended corporate stay |
This marks Chalet’s 4th hotel in Hyderabad and entry into fast-growing Financial District with high-quality demand driven by strong infrastructure connectivity and high GCC concentration |
|
Room count (including standard rooms & suites) |
231 keys |
150 keys |
|
F&B outlets |
3 |
3 |
|
Banquet space |
~7,000 sq. ft. |
~4,300 sq. ft. |
|
Type of Lease Arrangement |
Grey shell (including the structure without façade & high-side MEP) |
Warm Shell (including the structure, façade and high-side MEP; conversion of existing office building) |
|
Cost of fit-out |
Rs 10.8 million per key |
Rs 13.5 million per key |
|
Capex Timeline |
FY 2030/ FY2031 |
FY 2028/ FY2029 |
|
Launch Timeline |
FY 2031 |
FY 2029 |
On the announcement, Shwetank Singh, MD & CEO, Chalet Hotels said,
“The announcement is a significant milestone for Chalet, and more importantly ATHIVA®, as it strengthens our growth pipeline. It helps us consolidate our position in deep markets of Pune and marks our entry into fast-growing Financial District of Hyderabad. This takes our total inventory, including pipeline (~2,036 keys), close to 5,500 keys – highlighting our growth trajectory. Chalet has evolved as a leading hospitality player with the current leg of growth witnessing rapid diversification and expansion with multiple projects being executed simultaneously. What makes this journey more exciting, for us, is the significant investment towards building and ramping-up our in-house brand – Athiva, as we move towards a hybrid-model with a growing number of self-operated properties and keys.”
“These two transactions reflect how we’re building an integrated portfolio. Grade A office remains our core business, but hospitality adds a stable, complementary income stream while making our campuses more vibrant and premium, which in turn strengthens tenant experience and retention, especially for GCCs seeking a true live-work-play environment. This transaction was structured to deliver long-term value for our unitholders.” said Ramesh Nair, MD & CEO, Mindspace REIT.