Chalet Hotels to open its first Ritz Carlton in Hyderabad

New Delhi: Chalet Hotels will launch its first Ritz Carlton hotel in India in Hyderabad, MD and CEO Shwetank Singh said.

Chalet’s board of directors have approved the development of the 330-room luxury hotel project with commercial or retail space of about 36,255 square feet in Madhapur, Hyderabad. The hotel is being developed as part of a project which will be on a warm shell lease through Mindspace. Once operational, the Ritz Carlton will be the company's third hotel in Hyderabad.

Singh said Chalet is looking at an investment of around Rs 630 crore and the mode of financing will be a combination of internal accruals and debt.


“We have got a very good deal through our association with Marriott International, and this will be the first ultra luxury project from Chalet Hotels. We decided on Hyderabad because it has been a very strong market for us and it continues to surprise us,” said Singh. “We are hopeful of a robust rental performance and good returns on the bottom-line. The capex of Rs 630 crore is for our fit outs. Mindspace is putting in a capex of around Rs 300 crore. So, we are looking at Rs 930-940 crore for a 333 rooms luxury hotel which is less than Rs 3 crore per room,” he added.

Singh said the company is looking to complete the project in 36 months, but it might be sooner. “We are pushing the envelope on premiumisation and have a very deep belief in the premiumisation of all our offerings - be it residential or commercial projects,” said Singh.

“Our data points tell us that these are the segments where most of the growth will come from. All our future announcements will be driven by this belief,” he added.

Earlier this month Singh had told ET a lot of upcoming announcements from the chain will materialise through the Mindspace business. Both Chalet Hotels and Mindspace Business Parks are part of K Raheja Group.

“We are already in possession of these land parcels backed by a large commercial arm,” Singh had said.

“The acquisition risk on them is zero. Because the two asset classes go so beautifully together, for us to follow Mindspace would be a natural progression. They find it helpful because having a great hotel in a business park helps drive numbers.”