Swaraj Baggonkar Moneycontrol News
Marriott International, the world's biggest hotel chain, will witness a change of guard at its oldest property in India when Renaissance, Powai, makes way for the Westin brand early next year.
The hotel, owned by Mumbai-based real estate major K Raheja Group, will be rebranded to Starwood Hotels-owned brand.
Overlooking the Powai lake, Renaissance Mumbai Hotel and Convention Centre has 773 keys and multiple restaurants, making it one of the largest properties in the city and the biggest in that area.
The Westin is a premium brand that sits two notches above the Renaissance brand. This will allow the operator to charge a premium compared to the prevailing rates, a top official of Chalet Hotel, the hospitality company of the K Raheja Group said.
This will be the second Westin property in Mumbai, with the first opened at Goregaon (also a suburb of Mumbai) in partnership with Oberoi Realty.
The Powai complex will also house a 150 room hotel under the luxury brand W, which will make its debut in Mumbai. This property is open in 2021-22. A W property is already operational in Goa.
Chalet Hotels will open a new 260-keys hotel is also coming up in Airoli, Navi Mumbai, under the Hyatt Regency brand. This is scheduled to open in September 2021 and will be under the leasehold model.
There is also a Westin scheduled to come up in Hyderabad in April 2021 having 178 keys. This property too will be under the leasehold model.
Mumbai has recorded the best growth in room occupancy and room rates among all other major markets in India, as per a report. Limited room supply accompanied by high demand has led to higher average daily rate (ADR) in the city since the past two years.
Chalet Hotels is launching an initial public offering (IPO) of Rs 950 crore which is set to open for subscription on January 29. The company has set a price band of Rs 275 to Rs 280 per share per equity share. The company intends to use Rs 720 crore of the proceeds for debt repayment. The next debt on the company after repayment would stand at Rs 1550 crore.
Company officials refused to state the capital expenditure lined up for the coming year but said that it is also scouting for opportunities for buying stand-alone hotel assets which are not necessarily in the state of distressed sale.
In the last three financial years, Chalet Hotels recorded a compounded annual growth rate of 22 percent in revenue to Rs 840 crore in 2017-18 from Rs 564 crore recorded in 2015-16. Net profit last year stood at Rs 31 crore, which was down from Rs 127 crore recorded in 2016-17.
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