Chalet Hotels , a prominent player in the hospitality sector, is poised for a robust performance in the second half of the financial year, according to Executive Director Shwetank Singh. The company's optimism stems from the upcoming wedding season and recovering travel demand, particularly in the international segment.

Seasonal Business Distribution

Traditionally, Chalet Hotels experiences an uneven distribution of business throughout the year:

This skew towards the latter half of the year underpins the company's positive outlook for the coming months.

Key Growth Drivers

1. Wedding Season: The company expects to benefit from deferred auspicious wedding dates, which are likely to boost bookings.
2. Peak Performance Months: November and February are anticipated to be the highest-performing months, with strong bookings already in place.
3. International Travel Recovery: The resumption of direct flights and the return of expat movement to pre-pandemic levels are contributing significantly to the company's performance.

International Travel Segment Benefits

The recovery in international travel is particularly advantageous for Chalet Hotels due to:

• Higher average daily rates
• Increased food and beverage consumption

Q2 Performance and Challenges

Despite the positive outlook, Chalet Hotels faced some challenges in the recent quarter:

• 7% year-on-year decline in portfolio occupancy
• Factors affecting performance:
  • Fewer auspicious wedding dates
  • Extended weekends impacting resort bookings

Financial Position

Chalet Hotels maintains a strong financial position:

Singh highlighted that the company's debt servicing is covered by lease rentals, which allows the hospitality cash flows to be directed towards growth investments.

Conclusion

As Chalet Hotels navigates through the evolving hospitality landscape, the company appears well-positioned to capitalize on the recovering travel industry and seasonal demand. With a strategic focus on high-yield international travelers and a robust financial structure, the company is optimistic about its performance in the coming months. Investors and industry observers will be keenly watching how these anticipated trends materialize and impact the company's overall financial health.

Chalet Hotels Limited has announced an interim dividend of Re. 1 per equity share for the Financial Year 2025-26, as declared by its Board of Directors. This dividend represents 10% of the face value of Rs. 10 per share. The company has also provided detailed information on the tax implications and procedures for shareholders.

Dividend Details and Payment

Tax Deduction at Source (TDS) Information

Chalet Hotels has emphasized the importance of Tax Deduction at Source (TDS) on dividend payments, as mandated by the Income Tax Act, 1961, amended by the Finance Act, 2020. Key points for shareholders include:

• Dividends are taxable in the hands of shareholders for payments made after April 1, 2020.
• TDS rates vary from nil to 20% for resident shareholders, depending on the documentation provided.
• Non-resident shareholders are subject to a 20% TDS rate.
• Shareholders must ensure their details are updated with their Depository Participants before the record date.

Important Actions for Shareholders

1. Update Personal Information: Shareholders should verify and update their PAN, residential status, email address, and bank account details with their depository participants by November 11, 2025.

2. Aadhaar-PAN Linking: The company stressed the importance of linking Aadhaar numbers with PAN to avoid a higher TDS rate of 20%.

3. Document Submission: Shareholders eligible for TDS exemption must submit necessary documents through the company's designated portal by 5:00 PM IST on November 11, 2025.

4. Bank Details: To facilitate direct dividend credits, shareholders are urged to ensure their bank account details are current in their respective demat accounts.

Chalet Hotels has provided a comprehensive communication to shareholders, detailing the process for tax deduction and the formalities to be followed. This proactive approach aims to ensure smooth dividend distribution while complying with tax regulations.

For any clarifications, shareholders are advised to contact the company via email at companysecretary@chalethotels.com or investorrelations@chalethotels.com .

This dividend declaration and the associated tax procedures highlight Chalet Hotels' commitment to shareholder value and regulatory compliance in the evolving landscape of corporate governance and taxation.