Chalet Hotels Limited's Board of Directors has approved a significant expansion project in Hyderabad, marking another milestone in the company's growth strategy. The board approved a luxury hotel development that will strengthen the company's presence in the southern Indian market, requiring an investment of ₹633 crore.

Project Overview

The approved development encompasses a ~330 room luxury hotel along with commercial and retail space spanning ~36,255 sq. ft. The project will be located at Madhapur in Hyderabad, a prime business district known for its commercial significance. The hotel will be developed as part of a building premises that will be acquired on a warm shell lease arrangement.

Financial Investment

The project requires a substantial investment of ₹633 crore, which includes the security deposit component. The company plans to finance this development through a strategic combination of internal accruals and debt financing, demonstrating a balanced approach to funding expansion.

Strategic Significance

Once operational, this facility will become Chalet Hotels' third hotel property in Hyderabad, significantly expanding the company's footprint in this key market. The development aligns with the company's broader investment and expansion strategy, positioning the organization for enhanced market presence in the hospitality sector.

Implementation Timeline

The proposed capacity addition is scheduled for completion by FY2029, providing a clear timeline for the project's execution and operational commencement. This strategic expansion reinforces the company's commitment to strengthening its presence in key Indian metropolitan markets.

Chalet Hotels has disclosed to stock exchanges that it received a property tax notice from the Greater Bengaluru Authority demanding Rs.39.56 crore in alleged dues for its hotel complex located in Whitefield, Bengaluru, Karnataka. The company made this disclosure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Notice Details and Discovery

The Greater Bengaluru Authority issued a 'Proclamation and Written Notice of Sale of Immovable Property' against Chalet Hotels for alleged non-payment of property tax dues. The notice amount includes the principal tax amount along with interest, penalty, cess, and other charges totaling Rs.39.56 crore.

The company became aware of the notice through a news article published in a local newspaper, following which it obtained a copy of the notice from the authority's official website.

Company's Position and Response

Chalet Hotels has categorically stated that all tax demands have been paid regularly and in a timely manner. The company believes the notice was issued due to an inadvertent system-related issue or technical glitch on the part of the Greater Bengaluru Authority.

The hotel operator is taking necessary steps to address the matter, including:

• Pursuing appropriate legal recourse
• Engaging with the Greater Bengaluru Authority for resolution
• Expecting a favorable outcome based on its compliance history

Business Operations Continue

Despite the tax notice, Chalet Hotels has assured stakeholders that its business operations remain unaffected. The company specifically mentioned that operations at the hotel and commercial complex in Whitefield continue as usual without any disruption.

Regulatory Compliance

The disclosure was made in compliance with SEBI regulations, referencing the Master Circular for compliance with listing regulations. This transparency demonstrates the company's commitment to keeping investors informed about material developments that could potentially impact its operations or financial position.