Chalet Hotels posted a loss of Rs 43 crore for the quarter ended September 30, compared to a profit of Rs 10.2 crore for the quarter ended September 30, 2019.
On a quarter on quarter basis, the chain saw a marginal uptick in revenue from operations. The chain had posted revenue from operations of Rs 53 crore for the quarter ended June 30. The chain had posted a loss of Rs 39.3 crore for the quarter ended June 30.
In a BSE filing, the chain said that as at September 30, it faces significant economic uncertainties due to the Covid 19 pandemic, which have impacted its operations adversely starting from March 2020 onwards particularly by way of reduction in occupancy of hotels and average realisation rate per room and fall in the revenue of other assets.
Chalet Hotels said the management is undertaking various cost saving initiatives to maximise operating cash flows in the given situation. The chain also said it has sufficient financing arrangements to meet its operating cash flow requirements and debt repayment obligation as they fall due.
In a separate statement, Chalet Hotels said the three key levers that resulted in a positive EBITDA of Rs 3 crore during the quarter under review included preserving liquidity, cost rationalization and its mixed-used development strategy.
It also said on a sequential basis with all hotels being operational, its occupancy was higher by 100 bps and ADRs saw a 4% improvement. Sanjay Sethi, MD and CEO, Chalet Hotels Limited, said, “Through this tough period, it is the mixed-use development strategy that has worked to our advantage, delivering steady rental revenues and cashflow support. As the situation evolves, we continue to re-engineer our operations and strategize toward permanent cost efficiencies and strengthening operational performances.”