Chalet Hotels Ltd. IPO
IPO Timeline
Category-wise Subscription
| Category | Sub (x) | Offered | Bid For | Amt (Cr)* |
|---|---|---|---|---|
| QIB | — | 29,306,785 (50%) | — | ₹82,059 Cr |
| NII (HNI) | — | 8,792,036 (15%) | — | ₹24,618 Cr |
| Retail | — | 20,514,750 (35%) | — | ₹57,441 Cr |
| Σ Total | — | 58,613,571 (100%) | — | ₹1,641,180 Cr |
Only available investor categories are shown. Amount is auto-calculated when shares offered and issue price are available.
Issue Details
Minimum Investment (Lot-wise)
| Category | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail (Min) | 1 | 53 | ₹14,840 |
| Retail (Max) | 13 | 689 | ₹192,920 |
| S-HNI (Min) | 14 | 742 | ₹207,760 |
| B-HNI (Min) | 67 | 3,551 | ₹994,280 |
Financial Statements Amount in Crore
| Metric | 30-Sep-18 | 31-Mar-18 | 31-Mar-17 |
|---|---|---|---|
| Revenue | 497 | 930 | 925 |
| Profit After Tax | -44 | 31 | 127 |
| Total Assets | 3,739 | 3,830 | 3,738 |
Valuation & Key Ratios
Grey Market Premium (GMP)
GMP is an unofficial grey market indicator and does not guarantee actual listing price. Invest at your own risk.
Objects of the Issue
- 1 Repayment/prepayment of certain indebtedness – 720.00
- 2 General corporate purposes. – 196.13
Company Overview
Incorporated in 1986, Mumbai based Chalet Hotels Limited is a company engaged in the business of owning, developing and asset management of high-end hotels in major metro cities across India. It is a part of K. Raheja Corp group which is a leading business group in the country.
The company's hotels are currently branded with global hospitality brands such as JW Marriott, Westin, Marriott, Marriott Executive Apartments etc. Its hotel platform includes 5 operating hotels located in the Mumbai Metropolitan Region, Hyderabad and Bengaluru.
The total revenue of the company was Rs 9,295.14 million for 2018, and the total revenue grew at a CAGR of 14.83% between 2014 and 2018.
Chalet Hotels Key Highlights
- International tie-ups with Marriott and relationships. The Chalet Hotels was the first partner in India for Marriott 20 yrs ago.
- Locations of the cities and location within micro-city
- Active asset manager model
- EBITDA CAGR double-digit growth
- RoCe ratio positive
- Valuation ratios comparable to Indian Hotels (Taj) in terms of Price to Book Value or EV/ EBITDA and P/E lower than that of Lemon Tree
- Demand (FY18-22: 12%) growth outpacing supply growth (FY18-22: 7%)
- Occupancies have reached 75% for Chalet portfolio - ARR growth to follow
- Chalet EBIDTA (FY18) at 41% Vs industry (All India 5 star Deluxe Average) is at 34%
- Highest return on capital - Lower per room construction cost
- JW Sahar built at Rs 1.4 Crs per key (1,100 sq ft per key)
- Most hotels are built at the higher cost (average of 1,500 - 2,000 sq ft per key)
- Renovation cost of Rs 15 lacs per key at Renaissance Vs others at over Rs 1 cr per key
- Consolidated land spend Rs 208 crs vs others much higher
- Returns to key investors:
- HDFC returns (1999 - 2012) - IRR 14.46%
- IDFC returns (2012 - 2015) - IRR 12.73%
- Shoppers stop returns: (Since IPO) - 7.9%
- Annualized EBIDTA
- FY20 - Rs 500 Crs
- FY22 - Rs 700 Crs
Competitive Strengths of the Company
1. Luxury upscale properties located in major metro cities
2. Part of K. Raheja Corp group
3. An active asset management model