Chalet Hotels expects an improvement in revenue growth during the April-June quarter, supported by resilient domestic travel demand that has helped offset the impact of foreign tourist cancellations triggered by geopolitical tensions in the Middle East.
The company, which operates 11 hotels under brands including JW Marriott, The Westin and Novotel, expects revenue growth excluding its residential business to remain in the high single-digit to low double-digit range during the quarter.
Chalet Hotels Managing Director and Chief Executive Officer Shwetank Singh said domestic leisure travel continues to perform strongly, providing a buffer against disruptions in international travel demand.
The outlook marks an improvement from the previous quarter when core revenue growth slowed to 6% compared with 23% in the preceding October-December period. The slowdown followed travel disruptions and booking cancellations linked to the conflict in the Middle East, which affected international travel patterns.
According to Singh, the company experienced booking cancellations worth approximately ₹60 crore between March and April, largely from foreign travellers. However, inbound demand has begun showing signs of recovery in recent weeks.
He noted that domestic tourism remains robust, with some destination weddings originally planned in the Middle East being relocated to India, providing additional demand for hospitality operators.
The broader hospitality industry continues to benefit from strong domestic travel trends, supported by rising leisure tourism and increased preference for domestic destinations. Industry estimates indicate hotel demand and supply growth in the range of 10-15% during the current financial year.
While leisure travel remains resilient, corporate demand has shown signs of moderation as businesses seek to control costs amid higher oil prices, freight expenses and insurance costs linked to global geopolitical uncertainties.
To maintain occupancy levels, Chalet Hotels has introduced pricing strategies aimed at attracting corporate clients that may have previously considered its properties beyond budget, while avoiding broad-based room rate reductions.
Industry observers expect domestic tourism to remain a key growth driver for the hospitality sector, particularly as Indian travellers increasingly choose domestic destinations for leisure, events and celebrations.
With improving occupancy trends and steady leisure demand, Chalet Hotels remains optimistic about sustaining growth momentum despite ongoing challenges in international travel markets.
