Chalet Hotels adds two Athiva hotels to pipeline, enters Hyderabad market

The K Raheja Corp-backed hospitality firm adds 381 keys across Hyderabad and Pune under its Athiva brand, taking its total inventory, including the pipeline, close to 5,500 keys

Chalet Hotels Limited (CHL), part of K Raheja Corp, on Wednesday added two new hotels to its development pipeline, adding a total of 381 keys, including 150 in Hyderabad and 231 in Pune. The hotels will operate under the company's Athiva brand.

 

"The announcement is a significant milestone for Chalet, and more importantly Athiva, as it strengthens our growth pipeline. It helps us consolidate our position in the deep markets of Pune and marks our entry into the fast-growing Financial District of Hyderabad," Shwetank Singh, managing director and chief executive officer of Chalet Hotels, said, adding that this takes the hotelier's total inventory, including its pipeline, close to 5,500 keys. Athiva is a premium lifestyle hotel brand launched by Chalet Hotels.

 

 

The hotels will be operated under a long-term lease by Chalet Hotels from special purpose vehicles (SPVs) owned by Mindspace Business Parks REIT.

 

The Hyderabad property is owned by an SPV of Mindspace REIT and will be repurposed by Chalet Hotels. In Pune, Mindspace REIT will construct the building up to the grey shell stage, while Chalet Hotels will complete the remaining interior work.

 

"Grade A office remains our core business, but hospitality adds a stable, complementary income stream while making our campuses more vibrant and premium, which in turn strengthens tenant experience and retention, especially for GCCs seeking a true live-work-play environment," Ramesh Nair, managing director and chief executive officer of Mindspace REIT, said.

 

The company said the development structure would allow it to defer capital expenditure (capex) to the later stages of the project. It added that the model aligns with its strategy of having hospitality assets within business parks, providing a ready customer base from a multi-use ecosystem.

 

The structure also helps avoid land acquisition risks and speeds up time-to-market.

 

CHL currently owns 11 operating hotels and resorts in India, including properties under brands such as JW Marriott, The Westin, Marriott and Novotel. It also has a commercial real estate portfolio, which it expects to expand to 3.3 million square feet from 2.4 million square feet.