Chalet Hotels FY26 revenue hits ₹20.7 billion, tops 5,000 keys
Chalet Hotels FY26 reports ₹20.7 billion revenue with 18% growth, while expanding its portfolio beyond 5,000 keys and advancing major hotel developments.
nishathapa 
Mumbai, May 16, 2026: In a year when travel demand kept swinging between spikes and slowdowns, Chalet Hotels quietly leaned on pricing power and real estate income to keep its numbers moving up.
Chalet Hotels Limited reported consolidated revenue of ₹20.7 billion for FY26, marking an 18 percent year-on-year increase, as the company expanded its portfolio beyond 5,000 keys and advanced multiple hotel developments across key Indian markets.
The company’s performance reflects steady operational growth despite a year hit by geopolitical disruptions, aviation sector friction, and extreme weather conditions. Chalet Hotels’ dual play—hospitality plus commercial real estate, helped it push both revenue and margins higher for the financial year ending March 31, 2026.
Revenue Growth and Profitability Metrics
For FY26, Chalet Hotels reported consolidated EBITDA of ₹9.6 billion, up 21 percent year-on-year, with margins improving to 46.2 percent. Consolidated Profit After Tax (PAT) stood at ₹6.5 billion for the year. Room pricing did the heavy lifting. Average Room Rate (ARR) rose 13 percent to ₹13,727, while Revenue Per Available Room (RevPAR) increased 5 percent to ₹9,226, showing the company held firm on rates even as demand stayed uneven.
In Q4 FY26, total income reached ₹5.7 billion, up 6 percent year-on-year. EBITDA came in at ₹2.8 billion with margins at 49.1 percent, while quarterly PAT stood at ₹1.6 billion.
Hospitality Segment Performance
The hospitality segment remained the core engine, generating ₹17.3 billion in revenue for FY26, a 14 percent increase year-on-year. EBITDA for the segment rose 12 percent to ₹7.6 billion. But the fourth quarter showed cracks. Hospitality revenue stood at ₹4.7 billion, up just 3 percent. ARR climbed 8 percent to ₹15,456, but occupancy dropped to 68 percent, down 7.7 percentage points year-on-year. RevPAR slipped 3 percent to ₹10,544.
In simple terms: higher rates, fewer rooms filled.Segment EBITDA for Q4 FY26 was ₹2.2 billion with margins at 47.4 percent, showing the business held steady even as occupancy softened.
Commercial Real Estate Drives Annuity Growth
This is where Chalet’s model stands out. Its commercial real estate arm delivered sharp growth, with FY26 revenue rising to ₹3.06 billion, up 55 percent year-on-year. EBITDA jumped 65 percent to ₹2.54 billion, with margins crossing 83 percent.
That kind of margin doesn’t come from hotel rooms. In Q4, annuity revenue reached ₹847 million, up 37 percent, while EBITDA rose 42 percent to ₹708 million. The exit rental income run rate hit ₹280 million, pointing to steady leasing momentum.
Portfolio Expansion and Development Pipeline
Chalet crossed the 5,000-key mark during FY26, backed by ongoing builds and pipeline additions. It now has seven projects under development, adding roughly 1,655 keys.
Key projects include:
– A 330-key luxury hotel in Hyderabad
– A 144-key premium resort in Udaipur
Both are aimed at strengthening presence in high-demand business and leisure markets. Construction activity is spread across multiple locations. The CIGNUS II project in Powai, Mumbai is moving toward completion by the end of FY27. The Taj Delhi International Airport hotel is also underway, with a phased opening starting Q4 FY27.
Other developments include the Ritz-Carlton in Hyderabad and the Hyatt Regency in Airoli, Navi Mumbai, where groundwork has begun. The Udaipur resort acquisition is complete, with expansion options under review.
Operational Resilience Amid Market Challenges
FY26 wasn’t a clean run. Geopolitical tensions, aviation disruptions, and weather events all hit travel patterns at different points in the year. But Chalet held its line on pricing. And its mixed portfolio helped offset volatility between hotel performance and steady rental income. The company also reported an ESG score of 82 in the S&P Global Corporate Sustainability Assessment, ranking second globally in its category.
It was also certified as a Great Place To Work for the seventh straight year. With a growing pipeline, rising annuity income, and a premium-heavy hotel portfolio, Chalet Hotels is continuing to scale across India, betting on a mix of steady rentals and rate-driven hotel growth to carry momentum forward.
