Chalet Hotels Limited Launches ATHIVA Hotels & Resorts: A New Era in Upper-Upscale Hospitality
Chalet Hotels Limited has recently embarked on an ambitious journey by introducing its new upper-upscale hospitality brand, ATHIVA Hotels & Resorts. This strategic move will unfold through six distinct properties boasting over 900 keys, reflecting a significant commitment to enhancing its presence in the hospitality sector. With an investment of approximately INR 1,500 crore, the majority of which has already been deployed, the launch showcases Chalet’s robust financial health and prudent management of debt.
The Pioneering Property: The Dukes Retreat
The inaugural hotel under the ATHIVA banner is set to be the revamped Dukes Retreat, a 147-room gem nestled in Khandala, Maharashtra. Scheduled to commence operations this week, this property signifies a significant milestone for ATHIVA’s entry into the Indian hospitality landscape. The focus here is on providing refined stays at prime leisure and business destinations, positioning the brand to cater to discerning travelers seeking quality experiences.
Expansion Blueprint: The Future of ATHIVA
Beyond its first property, Chalet has plans for an extensive portfolio expansion. The forthcoming hotels include an upgraded business hotel located in Navi Mumbai and the Resort at Aksa Beach, which is also part of the K Raheja Corp Group. Additionally, ATHIVA has three notable greenfield projects in the pipeline, with two in Goa and one in Thiruvananthapuram. These upcoming developments are eagerly anticipated, with operational dates targeted by 2029, adding significantly to the ATHIVA name’s presence in the market.
Financial Stability: A Solid Foundation for Growth
Chalet Hotels’ Managing Director and CEO, Sanjay Sethi, emphasized the company’s strong financial structure, highlighting a positive debt-to-EBITDA ratio that grants flexibility for future growth. This healthy financial position enables Chalet to explore various funding avenues, although Sethi reiterated an intention to primarily utilize internal accruals for upcoming projects. Such a strategy not only mitigates risks associated with external borrowing but also reflects confidence in the company’s operational capabilities.
Planned Growth Trajectory
The vision for ATHIVA is ambitious, with the company aiming to add approximately 300 to 400 keys annually over the next three years. This expansion would bring ATHIVA’s total capacity to nearly 1,800 rooms, aligning with Chalet’s broader strategy to enhance its footprint in India’s upper-upscale and premium hotel segments. This growth plan is particularly focused on tier-I markets and high-demand leisure regions, ensuring that every new property will thrive in its respective locale.
Target Markets and Future Opportunities
Sethi has articulated a clear growth roadmap for ATHIVA, targeting vital cities and regions across India. The immediate focus will concentrate on tier-I markets while also exploring enticing opportunities in leisure-centric areas like Goa, Rajasthan, and the picturesque Himalayan states. Southern markets, particularly Thiruvananthapuram, are also on the radar, driven by robust business and tourism demands that indicate a promising environment for new developments.
Chalet’s Portfolio and Increased Autonomy
Chalet Hotels Limited, an integral part of the K Raheja Corp, currently manages 11 hotels and resorts with around 3,351 keys affiliated with prominent international brands such as JW Marriott, The Westin, and Novotel. The advent of ATHIVA not only signifies a leap into the upper-upscale segment but also affords Chalet the autonomy to manage its own properties directly, further complementing its collaborations with established hospitality partners. This strategic dual approach allows for greater flexibility in branding and customer engagement.
Each aspect of this launch brings an exciting opportunity to rethink luxury and refinement in the Indian hospitality landscape, setting the stage for ATHIVA Hotels & Resorts to become a distinguished player in the industry.