Chalet Hotels Limited CC-Sep23.pdf · 2023-10-25
Sanjay, sir, I heard you, you were talking about double digit growth in ARR, and you expect this trend to continue for few years . So, that's a very good thing to happen . Having said that all, I understand that the current rates are high and the supply side not much of response because the IRR on the new hotels are still not that healthy that people are infused to invest. Barring these two things, if I want to have a view that this AR R growth will continue in the double digit for a couple of years , I don't get more insights or more colors into it . So, the conviction level on that kind of growth remains a bit low. So, if you can share some data points which probably can help us to improve our conviction and then maybe to look at what are the key things to look for to have that kind of confidence the way you have?
So, that's a very detailed answer, sir, but in this also I have two more questions. One is the supply side and what you said is I completely agree, because those things are very much measurable, and we know what is happening there. But on the demand side, there is a price elasticity, and I don't know how much it will work against us going forward as the rates goes up, because we are talking about couple of years of the double-digit growth. And on the high base, if you keep on adding double digit growth, the base, it becomes very large, and with that into context.