Chalet Hotels Ltd has expanded its hospitality pipeline with two new upper-upscale hotels under its in-house brand Athiva in Hyderabad and Pune.
The projects will add 150 keys to Hyderabad’s portfolio and 231-keys in Pune. The additions will strengthen Chalet’s presence in both cities and support Athiva’s expansion as a pan-India premium lifestyle hospitality brand.
Long-Term Lease Model
Both projects will be developed under long-term lease arrangements with Special Purpose Vehicles (SPVs) of Mindspace Business Parks REIT.
The Hyderabad project involves repurposing an existing building owned by a Mindspace REIT SPV.
In Pune, Mindspace REIT will develop the building structure on a grey-shell basis, while Chalet will undertake the interior fit-outs and the remaining development work.
Asset-Light Expansion
The development structure allows Chalet to defer a significant portion of its capital expenditure to the later stages of the project lifecycle.
The strategy also aligns with the company’s focus on integrating hotels within large business parks, enabling it to tap captive demand from mixed-use developments while reducing land acquisition risks and accelerating project execution.
Growth Strategy
“The announcement takes our total inventory, including pipeline, to close to 5,500 keys, highlighting our growth trajectory. Chalet is making significant investment towards building and ramping up its in-house brand Athiva as we move towards a hybrid model with a growing number of self-operated properties and keys,” said Managing Director & CEO Shwetank Singh.
“These two transactions reflect how we’re building an integrated portfolio. Grade A office remains our core business, but hospitality adds a stable, complementary income stream while making our campuses more vibrant and premium,” said Managing Director & CEO Ramesh Nair of Mindspace REIT.
Expanding Presence
The Hyderabad project will become Chalet’s fourth hotel in the city, alongside Westin Mindspace, Westin HITEC and the upcoming Ritz-Carlton hotel.
The Pune property will be the company’s second hotel in the city, complementing its existing Novotel.