Chalet Hotels (CHL), which owns, develops and manages asset of high‐end hotels in key metro cities in India, on Tuesday said the company has taken various steps towards rethinking the ‘new normal’ for the business and gearing its offerings for the post COVID‐19 lockdown world.
In a regulatory filing, the hospitality chain of K. Raheja Corp, said, “Within the hotel’s portfolio, 4 of our 6 hotels today have in‐house guests which include stay‐on guests, doctors and medical fraternity. Our colleagues at the hotels, continue to provide hospitality services to these guests under these trying circumstances.”
The Company’s hotel platform comprises five operating hotels including a hotel with a co-located serviced residence, located in the key Indian cities of Mumbai, Hyderabad and Bengaluru.
CHL’s hotels are branded with globally recognized hospitality brands in the luxury‐upper upscale and upscale hotel segments such as JW Marriott, Westin, Marriott, Marriott Executive Apartments, Renaissance, Four Points by Sheraton and Novotel.
Noting that social distancing is going to be the new norm, the hotel chain said elaborate health and travel history checks and distancing measures will be key in ensuring traveler safety.
“Today all our hotels including the ones without guests are adequately manned to align with the inhouse guest count, plant and machinery are regularly operated and sourcing arrangements are in place to the extent permissible to ensure smooth operations of the business,” the release said.
“The hotels are thus in a position to scale up at a short notice, post lockdown. With the phased withdrawal of the lockdown, it is expected that the hospitality industry will recover in line with the economy,” it added.
The company also said that its senior management has been actively working with various Hospitality and Industry associations (FAITH, HAI, FHRAI, CII & FICCI) in engaging with the Government to seek relief for the industry. This will provide the sector incremental support for revival over the short to midterm.
The company also said that in the near term the earnings and profitability of its business is expected to be materially impacted.
However it added that the company has over the years built a strong hotel led mixed‐use asset development model. In the current situation, while operations for Hotel and retail segments continue to witness direct impact from the crisis, rentals from commercial operations provide a steady annuity shield and resilience to the operating cash flows. The retail portfolio, which includes the two malls in Mumbai and Bengaluru, are currently closed in line with government protocols.
“The Company shall continue to assess the emerging consumer behavior and demand drivers thereby suitably realign its business strategy with a view to continue being a dominant player in the marketplace,” it added.