The company said the projects shall be leased from SPVs of Mindspace Business Parks REIT under a long-term lease arrangement. The Hyderabad hotel involves the repurposing of an existing building owned by an SPV of Mindspace REIT. As regards the Pune hotel, Mindspace REIT will develop the building structure on a grey shell basis, while Chalet will undertake the balance scope including interior fit-outs.
The company said the structure ensures Chalet’s capital expenditure gets deferred to the latter part of the development cycle. “Furthermore, this move aligns with Chalet’s overarching strategy of embedding hospitality assets within large-scale business parks, unlocking captive demand from a vibrant mixed-use ecosystem while mitigating site-acquisition risks and expediting time-to-market,” Chalet Hotels said in a statement.
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The property in Pune will be Chalet’s second hotel. The chain said it sees increased demand driven by increasing concentration of GCCs, MICE, global HQ visits, and extended corporate stays. The ATHIVA hotel in Hyderabad marks Chalet’s fourth hotel in the city. The company said it sees ‘high-quality’ demand driven by strong infrastructure connectivity and high GCC concentration in the city. Chalet aims to launch the Pune and Hyderabad hotels in financial year 2031, and financial year 2029 respectively.
Shwetank Singh, MD and CEO, Chalet Hotels said the announcement is a ‘significant’ milestone for Chalet, and more importantly ATHIVA, as it strengthens the brand’s growth pipeline. “It helps us consolidate our position in deep markets of Pune and marks our entry into fast-growing Financial District of Hyderabad. This takes our total inventory, including pipeline close to 5,500 keys, highlighting our growth trajectory,” he said.
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“Chalet has evolved as a leading hospitality player with the current leg of growth witnessing rapid diversification and expansion with multiple projects being executed simultaneously. What makes this journey more exciting, for us, is the significant investment towards building and ramping-up our in-house brand – Athiva, as we move towards a hybrid-model with a growing number of self-operated properties and keys,” he added.