We'll take the first question from the line of Karan Khanna from Ambit Capital.

Thanks for the opportunity. Just a couple of questions from my side. First is Shwetank on MMR, right? We've seen several quarters of relative RevPAR underperforming. So, if you can talk a bit about the strategy here, how's the booking window looking here, and more importantly, any big MICE activities that you're expecting, and some thoughts on how is competition ramping up, specifically the Fairmont next to JW Marriott Sahar?

Thanks, Karan. You know, as we have always said within MMR, if you look at our portfolio, it's basically three hotels. There is the FPS, there is the Powai hotel, and then there is JW Sahar. JW Sahar has always been an outperformer. We continue to outperform on the average rate side, and occupancies have stayed steady and at a very high level. So that's something that doesn't bother us at all. If you look at Powai, we have been under construction, but this is a pain that we're going through for a gain on the future. As I spoke in my opening statement, this is a complex that is transforming itself, and with 0.9 million of square foot of office sp ace in play and another 0.9 million under development, the potential of this campus is very high. We are going through this pain as the construction is ongoing on two accounts. One is that the porch is not available, which is why guests have stayed away from us. We have somehow

managed to cover up for some of that pain by taking smaller groups. Having said that, we have also lost some crew from that particular complex because of the noisy work that is going on. As we speak, the porch work will come to an end by the end of this quarter, so second half of the year, we are very confident that we'll be picking up business in the social segment. Even the noisy work is coming to an end, and by the end of another quarter, or quarter and a half, we should be out of the noisy work, and we'll be only doing fit-outs within the building. So, Powai should come back and roaring back, even though it has underperformed in the last few quarters. Having said that, FPS was also under renovation, as you are well aware. We have invested INR93 crores in that particular hotel, and we have a fresh new product which is ready to be fully launched. We already are at the fag end of that process. The rooms have been handed over to operations, and we will be announcing the rebranding over the next few weeks or so. So, my sense is that this current quarter will show improvement, but next quarter onwards, we should be back to the high levels of performance that can be expected from us, and has always been the case. With respect to the competition, I would say that it would be remiss of me to talk about Fairmont in particular, but I can tell you that in general, the supply seems to have been absorbed, and there is no major supply that's coming through at least in the next year or two. So, we do expect that market to sort of now start to grow back again, and we will be partaking in that growth as well.

Second and lastly, if you look at the leisure part of the portfolio, including all the three resorts which have done well this quarter. So, will that lead to any change in the long-term guidance of, let's say, 20% of your portfolio towards leisure? Would you look to allocate more in terms of expansion here? And on Inder Residency, given that it currently has about 144 keys with scope for expansion, so how much expansion potential in terms of expansion are you seeing here, and what are the timelines for that?

Okay. So very quickly on the leisure side, yes, it has done very well for us, and we continue to have faith in the resilience of the leisure market. It doesn't mean that we are changing our strategy quickly. As we are in a very long -gestation business, and changing it because of a quarter's performance or two-quarter performance even is not the best strategy. So, we continue to work on the same strategy as we have always had, 20% of our portfolio should be leisur e, and we'll stay in that space. Coming to Udaipur, we are very excited about that acquisition. We are clearly looking at expansion potential there. The reason why I refrain from telling you an exact number is because we have put some plans for planning permission. Once we have clarity on that, we will come back to you. There are two steps of approvals that are required in this hotel. One is from the local authorities, and the second is from the army cantonment, which is around us. We are in full dialogue with them, and we hope to bring good news to you. It'll be difficult to give you a direct timeline right now because there is a process that we have to go through, but we should expect all of this to get clarified over the next quarter or two. And at that stage, we'll

come back and I'm sure you'll be happy to note that the returns on this hotel are going to be very exciting. Whilst we are waiting for these approvals, we are not at a standstill. We have already started working on the internal designs, and for the existing building, we have the right to move in and start working, which we are doing as we speak. So, there will be progress on the existing building, it's just the expansion that we are waiting to hear from the authorities and the army.

We take the next question from the line of Vikas Ahuja from Antique Stock Broking. Please go ahead.

Hi! Thank you for the opportunity. So, my first question is we have three tailwinds on occupancy getting into FY2027 – Bangalore stabilization, Powai, Vashi construction renovation, and obviously, the resorts ramp-up. We started with a muted occupancy in Q1, but do we think with most properties stabilizing will help us to go back to 70% plus kind of occupancy maybe end of FY2027 or maybe in first half FY2028? Just addition to this, resort occupancy this quarter trended to 51%, and we have guided it towards 60%. So, is this tracking ahead of what we were estimating earlier?

Thank you, Vikas. I'm glad you picked up our expansion potential in the portfolio. Clearly, we are very hopeful on all those three accounts, and what I can tell you is that we are continuing to track well, and the run rate that we are seeing of growth is very exciting for us. So, we do expect all of these to stabilize and give us the growth impetus that we are looking for. With respect to resorts, I would say that resorts in general operate in a fully stabilized situation at around anywhere between 60% and 65% occupancy. So that's what we are trending towards, and that's what we are looking at as the potential. If we look at our resort occupancy for this quarter, it was about 51%, and we expect that to continue to improve and slide upwards. Particularly excited about Athiva, because we have seen a great traction. We have positioned it very well. And in particular in Khandala, I would like to let you all know that we are creating a new market. Today, especially in the MICE segment, that market operates at a very different price level, and we are educating the market that what we have to offer has to come at a premium pricing, and that's taking a little bit more time. On the weekends, we are already getting more than our fair share of business, and have managed to maintain the rates north of INR15,000. So, we're very excited about that property.

Thank you. We take the next question from the line of Achal Kumar from HSBC. Please go ahead.

Yes. Hi. Thanks for taking my question. So, coming back to MMR, could you please give us in terms of the color, what was the A RR and occupancy performance excluding Powai property, and what kind of delta you're expecting in terms of revenue as your Powai property, since you're quite excited once the CIGNUS II completes, what kind of revenue delta you're expecting? Thanks. That's my first question.

Yes, we are surprised and a little worried that the community is so focused on the last few quarters of MMR performance. Please don't write us off. We are on the path of creating long - term value, and that's why we don't get worried by these temporary blips. W e knew we had to go through some pain while the construction is going on, and we are willing to take that pain. Just as a quick reminder, another 0.9 million being added. So, for the first 0.9 million square foot at CIGNUS I is already more than 90% occupied. And the last run rate of rentals that we had is north of 150. So, we have already sort of started getting good traction there in that particular complex. Addition of another 0.9 million square foot will give us a very steady income of a serious quantity, w hich will help add further to the bottom line of the company. So, we are very clear that we are in the business of creating value in this particular complex. With respect to the hotel, I think most of the pain is getting behind us now. As I said earlier, with the porch back, second half of the year from a social perspective should be good. We should start getting larger groups as well. We have also looked at expanding our banquet facilities, and once we get planning permission on that, we should be able to come back with more details, but that should actually become one of the most major banqueting facilities that MMR has. And with that, we should add even further value to that particular complex. So, we are not worried. We are watching the space closely, but it doesn't bother us as of now.

Right. And my second question is around Athiva. So you mentioned that you're doing a lot to sort of increase awareness, doing marketing campaigns, but are you also thinking about doing something with the sales and distribution strategy or doing some kind of agreement with Marriott for this property? Is that going to help? So what exactly are you thinking about A thiva, and in general in, of course, your resort properties?

So let me talk about Athiva Khandala in particular because you've touched a raw nerve, and this is a conversation we constantly have in our boardroom. Athiva Khandala, and just to remind you what was earlier The Dukes, is a hotel that has been largely fed by domestic business, and it comes mainly from the Mumbai Metropolitan Region and Pune. So having said that, we have no plans, as of now, to sort of tie up with any other brand. This is our experiment at setting up Athiva, and from the signs that we have seen, we are very encouraged. That's number one. Number two, we continue to invest on the marketing side of it, and as I said, we have already received great traction on the weekend. We are getting more than our fair share. We have managed to hold our rates. Where we still need work is on particularly during the weekdays, because that's largely MICE, and for MICE, you need to knock on doors and let them know that we exist and that we h ave a portfolio, we have a hotel that has a lot to offer. As I said earlier, we are educating the market in the process as well because that market operated at a lower rate, but we believe that we have the product, and we want to position it at a higher level. And all of this, why we are actually most excited, is that if you look at our customer reviews, which are nearing 500 already online, we are at 4.9 plus rating. We have been accepted by our

customers, we have fantastic customer feedback, and that's what gives us the most confidence that we will do very well in this resort, and with Athiva in general.

Thank you. We take the next question from the line of Prashant Biyani from Elara Capital. Please go ahead.

Yes, thank you for the opportunity. Sir, can you give some granular details on Westin Rishikesh and Marriott Aravali, how they are doing? You have elaborated on Athiva, but on the other resort properties, how they are faring?

Okay. Westin Himalayas has been on fire this year, and we are actually growing year-on-year quite substantially there. We have managed to again, once again, sort of hold the rate there while growing occupancy, and that has always been our target. When we had acquired this hotel, we wanted to get to a certain revenue number to get ad equate returns on this, and we are well on track. In fact, we were tracking it against the feasibility that we had put in place, and we are bang on schedule. So, we are very encouraged by the performance there. If we carry the same thinking forward to Marriott Aravali, which used to be the Courtyard, and we have just literally just rebranded, we have had some sort of relook at that place and on how to reposition it. We have added a clubhouse, we have added further guest facilities, we have even created new meeting spaces. So that should all start to kick in as we speak. We have even made the area around the swimming pool, the bar facilities, etcetera, of a much higher level now. So, we would expect a higher rate positioning as we go into the year. So that's how we're viewing both our properties, and as I've always maintained, leisure portfolio is very exciting for us, and we want to continue to do well there.

Right. Sir, on Udaipur asset, while on the expanded portfolio, we are awaiting approvals, for the existing property, what would be the commercial timeline? When are we going to start to operate it?

So one of the biggest mistakes sometimes we can make in portfolios is to partially open a property. Whilst we can finish the interior works much sooner, we would like to open it in totality, especially because we are looking to brand it under Athiva. So we w ant to properly launch this place, but what we are doing with the property, vis-a-vis the way we have bought it, will be a complete transformation. And the look and feel would be several notches higher than what it is right now. We want to take the maximum advantage of that particular market, which is largely driven by socials, as you are aware. And we are creating fantastic facilities, both open and closed, banquet facilities with rooftops available, with open spaces available, and we are adding villas, we're making a fantastic swimming pool at the center of all of it, great F&B offering. So the whole thing is looking very, very good, and as soon as it all comes into play, it'll be a major revenue addition to our leisure portfolio and overall portfolio as well.

Thank you. We take the next question from the line of Jinesh Joshi from PL Capital. Please go ahead.

Yes. Thanks for the opportunity. Sir , my question is on the ARR growth. I mean, basically, I just wanted to know how much commission do we end up paying for our GDS and OTA bookings, and how much of this growth of 8.5% is a function of the changes in the distribution channel mix that we have highlighted in this quarter versus the function of actual price hike? I know it might be difficult to quantify, but if you can give some color over here, it may help, because the share of OTA bookings is down to about 7% in this quarter, and that could be the reason why the ARR could be slightly up?

Ladies and gentlemen, we have lost the line of the management. Please stay connected while I reconnect the management. Thank you. Thank you for your patience, ladies and gentlemen. We have the management line reconnected. Jinesh, if you could please repeat your question for the management? Thank you.

Sure. Sir, I just wanted to know how much commission do we end up paying for the GDS and OTA bookings, and how much of this ARR growth of 8.5% that we have reported in this quarter is a function of change in the distribution channel mix that we have highli ghted in the presentation versus the actual price hike that we may have taken?

Okay. Thank you, Jinesh. So the first thing is on the commission side, and with having tied up with really large chains like Marriott or Accor and so on and so forth, we are very confident that the commissions that we pay on any of the channels is at the bottom end of the market, and we are at the lowest end. And if you look at our EBITDA margins and our room margins, you can clearly pick up that we are at the top end of the heap when it comes to the industry. So without giving away specific numbers, it's not correct to sort of talk about contracts publicly, I can tell you that we are paying at the bottom end of the overall payouts. Having said that, in terms of what's happening on the segmentation or distribution channels, we haven't seen a major change on the distribution channels, it's pretty similar to what it was last year. And from a segmentation perspective, we do have small groups coming in, we have social movement as usual, and crew has gone up for us. We have also gone back to the special corporates and given them slightly more attractive rates, so that we can keep them within our property and not lose them to the competition. So all in all, we have managed to sort of maintain almost all of our segments and hold on to what we had, so that we can continue on our growth despite the fact that there has been disruption on the foreign tourist arrivals.

Sure, sir. Just one last question from my side. I think the hotels that are under construction, we have highlighted progress of all the hotels except for the South Goa one, and this one I think we are planning to open by FY28. So maybe can you just share what is the progress over here in terms of where are we in terms of the construction timelines?

Yes, so South Goa is a hotel that has continued to elude us. It is notoriously hard to start pouring concrete in Goa. But what we have done in the interim is that we are ready from a design perspective, we are ready from a contracting perspective to hit the ground as soon as we get the approvals. As we speak, we have taken baby steps. We still hope to start construction by the end of this quarter, essentially once the rainy season is behind us. With that in mind, we know that we can build fast. It's a G+1 structure, and therefore, we would hope to finish this sooner than what a usual 200-room hotel would look like, but more on this once we start pouring concrete, please. So give us some leeway on this.

Thank you. We take the next question from the line of Vaibhav Muley from Haitong India Securities. Please go ahead. Vaibhav, please un-mute your line and proceed with your question.

Hi. Am I audible?

Yes, please go ahead.

Great. My first question Shwetank was on our leisure portfolio. We have done a fantastic job of expanding occupancy by more than 500 bps. My question was related to whether this is sustainable and when do you think we can reach this mark of 60% to 65% of s tabilized occupancy, especially from the background that entire leisure industry itself has seen a very sharp improvement, partly because of this shift of travel that we have witnessed from foreign outbound destinations to internal destinations. So if there is any chance of this trend reversal that you expect once the global situation normalizes, and will there be again any impact on occupancy because of that trend reversal? That's my first question.

Look, that's where different portfolios work differently and actually you called it out yourself. We are not really a stable portfolio when it comes to our leisure setup, and therefore the growth up to the 60% mark is a given. Now the question is how quickly do we get there and that's where the work of our asset management teams and our operators start to come into play. All the dynamics of a leisure portfolio are at play and we can see that as we speak. The segments are strong, social continues to stay strong, MICE is beginning to move again. The FITs who are the individual travellers, still continue to fill up the weekends for us. So we are looking at a very strong sort of a growth when it comes to the leisure portfolio, and for us, we still have some headroom on the occupancy side, as we have always said. So all in all put together, we do expect this part of our portfolio to continue on its growth trend as it has been in the past.

All right. My second question was on our customer and distribution mix. I just wanted to understand we have seen a bit of a decline in the transient mix and OTA mix as well on the distribution front, while rest of the industry has seen improvement in the O TA mix as well as the transient travellers, mainly because lot of individual transient travellers are going towards your domestic destinations. So why is this a different trend that we are witnessing?

Correct. OTA channel as well as the transient mix.

Okay, I see what you're referring to and which slide you're referring to. Look these trends are not necessarily a particular trend. This could be very dependent on where we are situated in which micro market we are referring to. I wouldn't necessarily see this as a trend, this could go up and down as we go along, and a lot of this is also driven by what's happening in other segments. So the percentage tends to move because of maybe another particular segment goes up, for example, groups have gone up for us, or special corporate goes up, so the percentages may look different. So I wouldn't sort of read too much into it. I would just sort of focus on at the end of the day, we have to maximize our revenue and that's where we are focused, it doesn't really bother us if the percentages change by a few percentage points here and there.

Thank you. We take the next question from the line of Prateek Kumar from Jefferies. Please go ahead.

Yes. Hi, team. A question on like metro hotels have a strong skew towards corporate and business travellers as we know, and business travellers have seen some moderation due to software/FTA trends. Are you seeing opportunities to drive incremental leisure demand into some of these properties through things like staycation weekend packages or other things? Also, what would be our like current business mix – business versus leisure mix for a metro hotel?

I wish what you said was true, and we would love to do that. In fact, we are attempting to do that as we speak , in particularly , in Powai, which has basically small oas is within large metropolitan areas. And with the lake in front of us and excellent views, we are adding some leisure facilities, we have just recently added a pickle paddle court, we are adding some sporting facilities in an area which used to be actually a records room, which we have converted to a games room now. So that is indeed our thought. We hope that people use us on weekends specifically in larger cities, but in some places this is not possible. So we have made several attempts in, for example, Whitefield in Bangalore, but it's just that there's just no way to trigger leisure demand. So overall, it's a trend that we watch out for, but we don't want to dilute our positioning by going very low on the rates because very hard to trigger demand just with rates. So it's a trend, as I said, we watch out for at all times, but I wouldn't necessarily expect a major flip or blip coming because of this particular trend.

Thank you. We take the next question from the line of Akash Gupta from Nomura. Please go ahead.

Hi, am I audible?

Yes. Hi, sir. Congratulations on a good performance in a volatile quarter. So my first question is on your MMR portfolio. I see ADRs growing 8% year -over-year, but occupancy coming down. So how are we seeing this trend -- this quarter, or at least for the first month in July, how has occupancy and ADR been?

Why don't you ask that question to Mr. Trump, please? On a serious note, he seems to have lost the plot completely, and now every day it's an up and down situation. Only yesterday, I saw even Saudi is getting involved now, so that is getting broad-based, that war. But having said that, this particular quarter did start strongly, but it's getting increasingly hard to now forecast our business, because every 5 to 10 days that seems to be changing. August is overall positive and looking good, and September is still a little far out, so our hope is that we will sort of continue to be on that growth pattern. Overall, this quarter, it would be remiss of me to give you any sort of guidance, because we ar e ourselves monitoring the situation on a day-to-day basis.

Thank you. We take the next question from the line of Abhishek Khanna from Kotak Securities. Please go ahead.

Hi, sir. I had one quick question on the leased assets in Airoli and Hyderabad. Could you share the details of the lease rentals that you'd be paying to Mindspace, the lease rentals, and/or the lease deposits that you would have paid to them?

Yes. So the only one asset that's in play right now where lease rentals are active is the Westin Hitec. And even though it's a group company, everything for us is at an arm's length, and we end up paying rentals which are, very clearly, what's prevalent in the market. That's how we look at these. So, to give a specific number won’t be right, but you can sort of judge what's going on in the market and sort of take a cue from that.

Thank you. We take the next question from the line of Anuj Upadhyay from Investec. Please go ahead.

Yes. Hi, thanks for the opportunity. Majority of my questions have been answered. Shwetank, this is related to the Westin Hyderabad Hitec . I believe we had some 3 -years contract with the Deloitte, which was supposed to get expired in the current fiscal. Just to get an update on that, whether it's still continuing or about to expire, and if yes, so how exactly should we proceed out here? Would there would be extension to this, or will now we keep it open?

We have actually renewed it for 1 more year. So it' s been a learning curve for both us and Deloitte, and Deloitte has been monitoring the occupancy on that. In fact, one of the things that did change, just for your understanding, is that earlier they were not insisting on Deloitte people necessarily staying at our hotel and using it only for their university purposes, but since the time the situation became bad, particularly in the Middle East, they have actually collated all thei r customers from other hotels and are forcing them to stay with us. So that's the current situation. We've renewed it for 1 year. We'll again come back to it by the end of this fiscal to see where we want to take this, both in terms of rental growth and whether

or not they continue to stay interested. Right now, the conversation is in a very positive manner, and we are looking at it as a partnership and helping each other sort of work through these difficult times of this.

Thank you. We take the next question from the line of Rahul Jain from PhillipCapital. Please go ahead.

Hi, sir. Congratulations on the RevPAR improvement over previous quarter. My question pertains to the Mumbai MMR portfolio. From a medium -term perspective, how do you see the occupancy shaping, given that you previously said that supply is getting absorbed and the market is starting to resume to its previous trajectory. So from a medium-term perspective, what could be the occupancy ceiling that you envision for this portfolio? Can it reach the previous highs of 77%, go towards 80% or perhaps even higher? Just wanted your thoughts on that. Thank you.

That's a great question, but just look at this in two parts, please. So the supply side has not impacted JW Sahar, we continue to have strong occupancies there, so there is no risk there of occupancies dropping. Powai and FPS have had temporary sufferance, mainly because of problems that we created for ourselves for a future. So, we definitely should come back to where we were originally, and that should not be a problem at all. And if we were at 77%, as you are reminding us, there is no doubt that we will build up to that. We have been market leaders in both of these hotels ag ainst our compset for a very, very long time. If you look at just FPS, for example, our fair share against the fair share of the market, we were at almost a 140% pre-going into refurbishment. So there is no reason why we shouldn't be starting to hit those numbers and even go beyond, particularly as that market becomes stronger. Powai again, with the problems gone of construction, we should go back to our heyday, and with the commercial business helping us, the revenue growth should be quite phenomenal from that complex.

Thank you. We take the next question from the line of Dipak Saha from Ashika Institutional Equity. Please go ahead.

Hi, thanks for the opportunity. Just one question, sir. So far, we have seen domestic travellers really giving a strong push to the overall industry. Just trying to understand how long do you think this is -- this can continue? The perspective I'm coming from, is this sufficient enough for -- to offset the foreign tourist loss that we have seen so far? So just from that point of view, trying to understand how is it sufficient enough, how long this can continue to overall keep the momentum quite buoyant for the Indian hospitality industry? And more relevant from our end?

Yes, look, the strength of the Indian consumer, I think, is still not fully realized. And if you look at all trends of per capita income, how we are growing, households that are earning above a certain amount, all of that, that base is growing quite rapidly, and they're also very keen on traveling now and COVID having taught them that experiences are meant to be valued. So having said that, I don't think we are anywhere near having fully utilized the peak of that ability. A great surrogate of this would be the Indian stock markets when foreign investors

started to pull out of the SIP business, you saw what happened to the markets with Indian investors coming into and fully understanding the SIP play. So we are not at all worried about Indian domestic market consumption at any point waning to a point where it'll be a concern to us.

Thank you. We take the next question from the line of Omkar from Motilal Oswal Financial Services Limited. Please go ahead.

Hello, am I audible?

Yes, you are.

Yes. What is the MMR share in the hospitality revenue for 1Q?

I think it's close to 43%.

Thank you. Ladies and gentlemen, we take that as the last question and conclude the question - and-answer session. I now hand the conference over to Mr. Shwetank Singh for his closing comments.

Thank you so much. As always, we appreciate your insightful suggestions and queries. We hope we have been able to respond to all your queries. In case you need any further clarifications or insight on our business, please contact Deepak, and he shall be able to help you. Good day, and thank you so much.

Thank you. On behalf of Chalet Hotels Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. (This document has been edited for readability purpose)