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Chalet Hotels acquires Westin Spa in Uttarakhand from Mankind arm for ₹530 crore
Chalet Hotels Ltd has acquired The Westin Resort & Spa, Himalayas in Rishikesh as it expands its luxury footprint.
The company bought the 141-room luxury property in the foothills of Uttarakhand from Mahananda Spa and Resorts, a subsidiary of Mankind Pharma Ltd, for ₹530 crore, subject to adjustments for net current assets, the companies said in a filing with the BSE. This strategic move underscores Chalet’s growing interest in premium leisure destinations, it said.
Mankind said the proceeds of monetization of non-core assets will be utilized to retire part of its debt and the transaction will be completed by 28 February.
The Westin Resort & Spa in Rishikesh started operations in January 2023 and total capital employed stood at ₹407 crore, with a net worth of ₹401 crore, as of December.
For the nine months ended December, it reported revenues of ₹71.86 crore and earnings before interest, taxes, depreciation, and amortization of ₹26.86 crore. In FY24, the company generated ₹74.33 crore in revenue and ₹21.35 crore in Ebitda.
Key milestone
“This proposed acquisition will be a key milestone in our strategy to expand footprint in the high-growth luxury and leisure segment,” Sanjay Sethi, managing director and CEO at Chalet Hotels, said in a statement. “This property will strengthen our leisure portfolio.”
Sethi had told Mint in December that the company will consider acquisitions and new hotels to expand its business and next 1000 rooms.
Backed by K Raheja Corp., the company owns prominent properties such as JW Marriott Mumbai Sahar and Westin Powai, among others. In 2024, it also acquired an 11-acre site near Varca Beach in Goa, along with The Dukes Retreat in Khandala and Courtyard by Marriott Aravali Resort in Delhi-NCR. The company also manages rental properties in Mumbai and Bengaluru.
Last year in March, Chalet also acquired the Courtyard by Marriott Aravali in Faridabad hotel from Ayushi and Poonam Estates LLP, which was owned by the family of RC Juneja, co-founder and chairman of Mankind Pharma. This resort was launched in July 2022, reporting average daily rates of over ₹15,000 a night when it was acquired. Chalet is primarily a hotel asset ownership company which competes with Samhi Hotels Ltd and Juniper Hotels.
Last week, Mint reported that in Q3 FY25, the company's revenue rose 22% to ₹457.7 crore from ₹373.6 crore a year ago, with a net profit of ₹96.3 crore compared to ₹73.5 crore in Q3 FY24. However, a deferred tax liability of ₹55.3 crore in Q2 FY25, triggered by changes in capital gains rules, reduced the company's FY25 profit, bringing its nine-month net profit down to ₹18.6 crore from ₹195.7 crore in the same period of FY24.
Source: Live Mint