New Delhi: BSE listed Chalet Hotels, owner, developer, asset manager and operator of high-end hotels in India, is earmarking about 300 crore for the new luxury hotel at terminal 3 of Indira Gandhi International Airport in New Delhi, MD Sanjay Sethi told ET in an exclusive interview.
In May this year, Chalet Airport Hotel, a wholly-owned subsidiary of Chalet Hotels, had signed a franchise agreement for the airport hotel with Tata Group-backed Indian Hotels Company (IHCL). The agreement was for the Taj brand.
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We have about 300,000 sq ft of built-up area within the project. We will be able to build roughly 390 keys over there
The hotel is being built on a warm shell lease arrangement between Chalet Hotels and DIAL (Delhi International Airport Limited).The hotel is expected to open by the end of financial year 2026.
“Because they (DIAL) are building the shell and the façade etc, our capex work will start when they have at least finished the basement and the couple of floors above ground. We have got about 300,000 square feet of built-up area within the project. We will be able to build roughly about 390 keys over there. We will end up spending about ₹300 crore,” he said. Sethi said five-digit average daily rates, 90% plus occupancy rates, and high F&B sales are expected from this upcoming airport hotel.
“This hotel is a franchising arrangement with IHCL, which means that while they will give their Taj brand to the hotel along with their loyalty programme, distribution support and access to their sales net- work, the day-to-day operations will be run by our team. This is very similar to what we have done with the Four Points by Sheraton hotel in Vashi. Going forward, you will see more and more control of operations of the hotels remaining with us in our portfolio,” he added. Cha- let has 900 rooms under development and will invest about 100 crore in revamping The Dukes Retreat, Khandala. It bought the 80 room resort spread over 7.5 acres in March this year for 133 crore.
