Chalet Hotels Limited IPO

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(i) Chalet Hotels Limited (CHL) is an owner, developer and asset manager of high-end hotels in key metro cities in India. The Company’s hotel platform comprises five operating hotels including a hotel with a co-located serviced residence, located in the key Indian cities of Mumbai, Hyderabad, and Bengaluru, representing 2,328 keys as of March 31, 2018. All the hotels are branded with globally recognized brands, such as, JW Marriott, Westin, Marriott, Marriott Executive Apartments, Renaissance and Four Points by Sheraton, which are held by Marriott Hotels India Private Limited and its affiliates. The four hotels properties and a serviced residence which are managed by third parties are JW Marriott Hotel Mumbai Sahar, Bengaluru Marriott Hotel Whitefield, The Westin Hyderabad Mindspace, Renaissance Mumbai Convention Center Hotel and Marriott Executive Apartments.

(ii) The strength of the Company’s hotel platform is based on strategic locations, efficient design and development of the hotels, appropriate positioning in hotel segments together with branding and operational tie-ups with leading hospitality companies. All the hotel assets are located in high-density business districts of their respective metro cities with high barriers-to-entry close to airports, major business centers or commercial districts and other convenient locations. CHL also endeavor to build hotels to superior standards targeting the luxury-upper upscale and upscale hotel segments at an efficient gross built-up area and development cost per key.

(iii) The Company has also developed commercial and retail spaces at close proximity to its hotels. The Company has a competitive advantage in key metro cities due to its early mover advantage in large, mixed-use developments in specific micro-markets.

(iv) The Company follows an active asset management model for the hotels operated by third parties, pursuant to which it closely monitors, and exercise regular oversight over, the performance of the hotel properties.

Objects of the Chalet Hotels Limited IPO:

Objective of

Chalet Hotels Limited IPO

are: The Offer for Sale Fresh Issue 1. Repayment/Prepayment of certain Indebtedness 2. General Corporate Purposes.

Chalet Hotels Limited IPO Details:

Open Date: Jan 29 2019
Close Date: Jan 31 2019
Face Value: ₹ 10 Per Equity Share
Issue Size: 1500 Cr.
Listing At: NSE,BSE

Promoters And Management:

Promoters of Chalet Hotels Limited Company are: (i) Ravi C. Raheja, Promoter of the Company, is a Non-Executive Director of our Company. He holds a bachelor’s degree in commerce from the University of Mumbai and a master’s degree in business administration from the London Business School. He has been on our Board since September 4, 1995. He is also the group president of K. Raheja Corp group. Ravi C. Raheja has 22 years of experience across the real estate, hotel and retail industry. (ii) Neel C. Raheja, Promoter of the Company, is a Non- Executive Director of the Company. He holds a bachelor’s degree in law and a master’s degree in commerce from Mumbai University. He has also completed the Owner/President Management Program from Harvard Business School. He has been on our Board since December 12, 1996. He is also the group president of K. Raheja Corp group. He has been instrumental in the diversification of the K. Raheja Corp group’s business from real estate development to retail and hospitality for the last two decades. He has also played a key role in the organization’s presence in retail brands namely Shoppers Stop, Inorbit Mall and Crossword. Neel C. Raheja is the co-chairman of the CII-National Committee on Real Estate and Housing, India chapter of Asia Pacific Real Estate Association Limited, and president of the NAREDCO Maharashtra, Management Committee. He has 20 years of experience across the real estate, hospitality and retail industry

Financials of Chalet Hotels Limited IPO:

Under Analysis

Comparison With Peers:

Under Analysis

Recommendation on Chalet Hotels Limited IPO:

Under Analysis

Registrar of Chalet Hotels Limited IPO:

  1. Karvy Computershare Private Limited

Company Address:

Chalet Hotels Limited Raheja Tower, Plot No.C-30, Block ‘G’, Bandra Kurla Complex, Bandra (East), Mumbai 400051 Phone No. +91 22 2656 4000 E-mail: investorrelations@chalethotels.com Website: www.chalethotels.com

Discussion on Chalet Hotels Limited IPO:

    *Xelpmoc Design & Tech Ltd*
    Issue Date 23 Jan 2019 to 25 Jan 2019
    Price Band 62 -66
    Lot Size 200
    Retail Discount 3 Rs
    Application Amount 12600

    Retail app. for 1 time *1825*

    Narmada Bio chem- Price band: 120 to 125
    Total issue size 90 cr
    15% QIP
    35% Retail
    50% HNI
    Issue opening: 5th to 7th February
    Listing on nse , bse main board. (Fwd)

    Hoping to see Market Wizard and other seniors take on this issue.
    On a cursory look, some of the issues seem to be
    1. Debt/Shareholder fund ratio of 5.50
    2. Is stated purpose of the IPO is to decrease debt?
    3. Fluctuating EPS between profit and loss between 2018: 1.19, 2017: 8.14 and 2016: loss (7.43)
    Similarly RONW has no steady pattern
    Hotel industry commands very high P/Es and the issue is likely to be highly priced as well.

    First IPU after recent fall in the market and a new IPO of 2019… what will be the valuation?