Chalet Hotels Ltd has expanded its luxury portfolio by acquiring The Westin Resort & Spa, Himalayas in Rishikesh. The company purchased the 141-room luxury property located in the foothills of Uttarakhand from Mahananda Spa and Resorts, a subsidiary of Mankind Pharma Ltd, for ₹530 crore, subject to adjustments for net current assets, as disclosed in a filing with the BSE. This acquisition highlights Chalet’s increasing focus on premium leisure destinations.
Mankind Pharma stated that the proceeds from the sale of non-core assets will be used to reduce part of its debt, with the transaction expected to be finalized by February 28. The Westin Resort & Spa in Rishikesh commenced operations in January 2023, with total capital employed amounting to ₹407 crore and a net worth of ₹401 crore as of December. For the nine months ending in December, the resort reported revenues of ₹71.86 crore and earnings before interest, taxes, depreciation, and amortization (EBITDA) of ₹26.86 crore. In FY24, the property generated ₹74.33 crore in revenue and ₹21.35 crore in EBITDA.
Sanjay Sethi, managing director and CEO of Chalet Hotels, remarked, “This proposed acquisition will be a key milestone in our strategy to expand our footprint in the high-growth luxury and leisure segment. This property will enhance our leisure portfolio.” Sethi previously indicated that the company is considering further acquisitions and new hotel developments to reach its goal of adding 1,000 rooms.
Supported by K Raheja Corp., Chalet Hotels owns several prominent properties, including JW Marriott Mumbai Sahar and Westin Powai. In 2024, the company also acquired an 11-acre site near Varca Beach in Goa, along with The Dukes Retreat in Khandala and Courtyard by Marriott Aravali Resort in Delhi-NCR. Additionally, Chalet manages rental properties in Mumbai and Bengaluru.
In March of the previous year, Chalet acquired the Courtyard by Marriott Aravali in Faridabad from Ayushi and Poonam Estates LLP, associated with the family of RC Juneja, co-founder and chairman of Mankind Pharma. This resort, launched in July 2022, reported average daily rates exceeding ₹15,000 at the time of acquisition. Chalet primarily focuses on hotel asset ownership and competes with Samhi Hotels Ltd and Juniper Hotels.
Recently, it was reported that in Q3 FY25, Chalet’s revenue increased by 22% to ₹457.7 crore, up from ₹373.6 crore a year earlier, with a net profit of ₹96.3 crore compared to ₹73.5 crore in Q3 FY24. However, a deferred tax liability of ₹55.3 crore in Q2 FY25, resulting from changes in capital gains rules, impacted the company’s FY25 profit, reducing its nine-month net profit to ₹18.6 crore from ₹195.7 crore during the same period in FY24.
