Chalet Hotels is firm on projecting an improvement in operating margins driven by recently added hotel properties and increased office leasing activity. The company, which has added assets such as The Westin Resort and Spa, Himalayas and Courtyard by Marriott, Aravali, expects these assets to contribute significantly as they mature. The continued office space leasing and property stabilisation would provide a business uplift in the Q1 & Q2/FY26.

Chalet Hotels has around 640 rooms in its development pipeline and 1,250 more under approval. Future expansion will primarily be funded through internal accruals. It expects occupancy to grow by 100-200 basis points in FY26. Currently,  with a portfolio’s occupancy of around 76 percent, it further, anticipates double-digit growth in Revenue per Available Room (RevPAR), with the industry surpassing 2024 levels.

Chalet Hotels currently has 70 percent of its office space leased across India, contributing 13-14 percent of its total revenue, while the remainder comes from its hospitality segment. Mumbai is the company’s largest revenue contributor, led by JW Marriott, Sahar and Westin and Marriott Executive Apartments, Powai. Hyderabad and Bengaluru are the next significant regions in its portfolio.