Chalet Hotels completes acquisition of The Dukes Retreat resort in Khandala for Rs 133 crore

Chalet Hotels Ltd. (CHL), owner and operator of high-end hotels and resorts in India, on Friday announced that it has completed the acquisition of a resort in Khandala, Maharashtra. The company has bought ‘The Dukes Retreat’, an 80-room resort spread over nearly 7.5 acres, for an enterprise value of Rs 133 crore.

Chalet Hotels said that it would now extend its expertise towards expansion and upgradation of the property to reposition it as an upper-upscale green lifestyle resort.

The resort currently includes 18 deluxe rooms, 54 executive rooms and 8 cottages. Chalet will commence renovation, upgradation, and inventory addition (42 rooms) on this property over the next few months.

In a stock exchange notification on Friday, Chalet said that it has completed the acquisition of 100 percent shares of Sonmil Industries Pvt. Ltd, owner of the land of the hotel, and 82.28 percent shares of The Dukes Retreat Pvt. Ltd, owner of hotel structure and business.

Consequent to above, Sonmil has become a wholly-owned subsidiary and Dukes has become a subsidiary of the company.

Giving details on the financials, Chalet said that apart from being EPS (earnings per share) accretive, this deal comes with an internal rate of return (IRR) of more than 20 percent.

Speaking on the acquisition, Chalet Hotels MD and CEO Sanjay Sethi said, “Chalet Hotels Ltd is positioned in a sweet spot with several of its capex projects approaching commercial opening in the next few months. The Dukes Retreat is the new addition.”

Shares of Chalet Hotels are trading 0.8 percent higher at Rs 363.3.