Ladies and gentlemen, good day, and welcome to the Chalet Hotels Limited Q2 FY twenty-five earnings Conference Call. This Conference Call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the Conference Call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Sethi, MD and CEO, Chalet Hotels Limited. Thank you, and over to you, sir. ... joining us today for the earnings call on the performance of Chalet Hotels Limited Q2 FY 2025 results. To begin with, the Indian hospitality sector seems to be doing well and has bounced back this quarter to demonstrate strong performances. This has been driven by overall positive environment supporting travel. From a macroeconomic perspective, India is navigating a mixed environment. The IMF predicts steady growth, and inflation remains relatively under control, though challenges like global geopolitical uncertainty continue to persist. During Q2 FY 2025, we've been able to demonstrate continued growth across key metrics when compared to the same period last year. Consolidated revenue of the company increased by a healthy 20%. EBITDA also saw 20% rise from Q2 of FY 2024. Within the hospitality segment, our revenue grew by 18%, accompanied by a similar increase in the segment EBITDA. Our portfolio occupancy stood at 73.6%, up 40 basis points, with the average room rate showing a 10% improvement over Q2 FY twenty-four, contributing to a year-on-year growth in RevPAR of 10.3%. On a like-to-like basis, the portfolio like-to-like RevPAR is up by 12%. Within the portfolio, Hyderabad led the occupancy improvement. Bangalore, followed by Hyderabad, led the pack on the room rate growth. For the rental and annuity portfolio, we clocked a revenue of INR 419 million, a growth of 39% on the same period last year, and 18% improvement on the previous quarter. The residential real estate segment continued robust sales with strong rates per square foot. We have sold thirty-two apartments, flats in this quarter, and I'm happy to share that we started clocking a new high rate of over INR 21,000 per sq ft. Nitin will later on share some more details on this. On the leasing front, we have picked up pace in the quarter, in the last quarter, with over two lakh sq ft of LOI being executed. We are confident of our target of achieving majority leasing by end of this financial year. We continue to grow our portfolio, and I'm extremely happy to share that we have hit another strategic milestone with the acquisition of an 11-acre beachfront land parcel in Varca, Goa. The resort is expected to open approximately three years from now and will feature around 170 keys. The resort will be positioned at the higher end of the pyramid and likely to be an upper upscale resort. Some updates on the ongoing projects. I'm afraid there's been a little bit of a delay on the opening of the or rather, the full opening of the renovated up and upgraded The Dukes Retreat by quarter. We expect to launch it in its new avatar by end of the financial year. Our graded opening of hotel rooms is already happening every month, and currently, we have 37 rooms, a restaurant, a bar, and a swimming pool in operation. The Taj at the T3 terminal in Delhi International Airport, which was scheduled to open by end of FY 2026, is now delayed and expected to open potentially by June of 2026. On the other projects, the work on the new hotel in Nerul, the Cignus 2 in Powai, and the additional rooms in Bengaluru, they are all on track. In Q2 FY 2025, we have commenced the renovation of Four Points by Sheraton Navi Mumbai, and 35 rooms have been taken out for the upgrade that we are doing, and therefore, they are out of action for this quarter. Completion of this upgradation is set for July 2025. I'm delighted to share that Chalet Hotels won the KPMG ESG Excellence Award 2024 in the mid-scale small cap companies and has also retained its spot as the Best Workplaces for Women 2024 in our category of companies in India. Overall, ladies and gentlemen, we're expecting a robust H2, driven by domestic and international corporate travel, MICE, and the wedding segment. We also expect the leasing pace, sale of residential units, and gradual increase in revenue at the Dukes Retreat and our Bengaluru Marriott Whitefield to assist the subsequent quarters. I will now hand over to Nitin Khanna, our CFO, to take you through the financial updates with some final details. Thank you. Thank you, Sanjay. Good morning, ladies and gentlemen. Welcome to another quarterly call as we continue the streak of historically best performances. This is one of the historically best performances for quarter two. On the financial updates, hospitality, In the hospitality segment, ADRs have had a double-digit growth at 10%, with stable occupancy at 74%. The resultant RevPAR was at 7,756, with a growth of 10%. Excluding the newly acquired hotel at Aravali and the Dukes Retreat, you know, which is under full renovation, on a same store basis, the occupancy expanded by 200 basis points, and RevPAR grew by 12%. It will be pertinent to note that the total room nights sold were higher by 7% during the same period. Hospitality revenue for the quarter was INR 3.4 billion, a growth of 18%, led by a combination of rate growth, inventory additions, and a healthy F&B growth. EBITDA for the segment came at INR 1.4 billion, with a growth of 18%, and we maintained margins at 41.4% within the quarter, led by prudent cost management. It would be pertinent to note that on a same store basis, margins improved to 43.4%, which is an expansion of 200 basis points. As we continue to add more hotels and diversify the positioning and segments, our margins for various quarters may see marginal shifts, accommodating the seasonalities of the respective micro markets and segments. On the annuity business, on the rental and annuity front, our revenue for the quarter was at INR 419 million, with an EBITDA of INR 323 million, and plus we are already seeing flow-throughs improving. On the residential Koramangala, on the updates on residential projects, we have sold 32 new units during the quarter, commanding an average rate of INR 21,835 per sq ft. This is again higher by about, INR 300 from the previous quarter. The 253 units have been sold out of 321 units. That is 80% sales have been achieved. Overall collections during H1 was INR 2.4 billion, and we have outstanding receivables of INR 3.4 billion as of September thirtieth. From a consolidated perspective, the consolidated revenue for the quarter was INR 3.8 billion, a growth of 20% year-on-year. Consolidated EBITDA was at INR 1.6 billion, with a growth of 20% and a margin of 40.6% for the quarter. Consolidated PBT for the quarter was at INR 0.8 billion versus 0.4 billion in the same quarter last year. Just to touch and update on the DTA, the recent Finance Act withdrew the indexation benefit on long-term capital gains tax, and as a result, the company reversed its deferred tax assets to the tune of INR 2 billion within the quarter under discussion, which had one-time non-cash impact. This has resulted in a negative PAT of INR 1.4 billion for the quarter. Without this impact, the PAT has grown 75% on year-on-year basis. On the debt part, during the year to date, the company has spent about INR 4.1 billion on CapEx and land acquisitions, which was majorly met out of internal accruals. The net debt as on thirtieth September 2024, was at INR 16.6 billion, which has been pretty much stable. We closed the quarter with an average cost of finance, standing at 8.52%, a reduction of 35 basis points from March 2024. I'm happy to further add that within the quarter, Chalet has received ratings upgrade from India Ratings, which moved from A minus to double A, and from ICRA, which moved from A to A plus. We have also received a new rating from CRISIL of double A minus. The company has been actively investing in its growth and has a CapEx plan of around INR 15 billion for the next six quarters for the announced projects. These will be largely funded through internal accruals. We will continue on our growth trajectory, and our balance sheet is in a very comfortable position to support further strategic growth opportunities. With this, let me open the floor for Q&A. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vikas from Antique Stock Broking. Please go ahead. Hi. Hi, good morning. Thank you for taking my question. So my first question is, in the opening remarks, we said that H2 is going to be robust. So is it fair to assume that in terms of ADR, year-on-year growth, we mean better than Q2 or at least double digits for second half? Hi, Vikas. Thank you for your question. As you know, we don't give forward-looking numbers, but you'll also know that the H2, typically in our industry, is significantly better than H1. We expect that sort of trend to continue.... but looks likely we are going good for decent Q3 and Q4. Okay. So I was just checking on YoY term. So okay, that's fair. Secondly, you know, if I refer to the industry reports which have come in past couple of months, Mumbai has seen a strong double-digit growth. But I'm surprised to see we have reported 7% growth in Mumbai in terms of ADR, especially when we started very strong in July. Can you please help us understand that? Sure. So look, I don't know the report. I haven't seen the report that you're referring to, but, I think Mumbai is, for us, has reported a 7% growth in ADR, which is a healthy growth, given that we were trying to stabilize the Powai hotel. We've also had new supply that's come into the Navi Mumbai market. So to some extent, there is a slightly stronger competitive environment in the Navi Mumbai. Of course, the Navi Mumbai hotel of ours is not a very large hotel, it's only 150 rooms, so the impact will be, you know, in the overall scheme will be that much lower. But I think a 7% growth in a quarter where we had extreme weather conditions, including flooding, where we saw softening up of September. In fact, the September first 20 days were pretty weak, and while September numbers are not really out from the consultants, I think if you see that, we saw a bit of a disappointing September that went by. However, the last 10 days of September picked up very, very aggressively, and we were able to sort of close the month reasonably well. In terms of the numbers of growth, I think we've had a balanced growth between JW Sahar and Westin Powai, in terms of rates. Powai has also improved occupancies. Marriott's Executive Apartment hasn't had a growth on ADR, but has grown on the occupancy side, and the Four Points by Sheraton has had an ADR growth of 5%. Given the competitive environment that it is in, with occupancy 83% and an ADR growth of 5%, I think the hotel has held out very well in this competitive landscape, and maintained its leadership position with a strong margin. Thank you. So my last question is: How is the overall, you know, corporate rate hike cycle looking like? And, and in terms of, you know, if I look at the hospitality ADR growth for Mumbai versus the other regions, the other region growth is almost three X. So, do you think this trend will continue going in the near to medium term as well? That's my last question, sir. Thanks a lot. On the occupancy side, Mumbai is reporting slightly higher occupancies than Hyderabad and Bengaluru. And we believe, with that stabilizing, we see that Mumbai will continue its, rate growth path in the number that we've sort of delivered in Q2. Hyderabad and Bengaluru, will continue to, grow strongly, and I think there's an opportunity of growing occupancies there in addition to the rates. So that's what we are likely to do in the quarter three and quarter four. In Delhi, we expect, at the Aravali, we expect, both occupancies and rates to grow very aggressively in H2, because that's a seasonal hotel, with winters being the best part of the year for them, and the wedding season is kicking in. We also expect the wedding season to support JW Sahar and the Powai Hotel very strongly. Novotel Pune has done extremely well, and it has actually absorbed the 88 new rooms we opened, and been able to deliver in it, with the addition of 88 rooms, 78% occupancies, and with the ADR growth of 10%, so I think it's strong growth there. Hyderabad Mindspace, we've seen rates at the Mindspace be slightly lower in terms of growth, but the occupancy has jumped 15 percentage points, which is a very strong jump in Hyderabad. Westin Hitec, which is the hotel that we have a single client in place, has had a rate growth of almost 30%. Occupancy is, of course, in that hotel, 100%. Overall, same store growth on ADR of 9%, same store growth in occupancy over 2.5%, 3%, and overall growth on RevPAR basis is at 12%. It's the same store growth that we have as a story, which is, I think, a very healthy growth. Thank you. Yes, sir. So just one thing which was missed was corporate rate, rate hike. Are we able to, you know, get them? Apologies for that. Yeah, corporate rate hike cycle will start going forward. I will let the teams sort of work that out before we come back with any commentary on the same. Okay. Thanks, sir. Thank you. The next question is on the line of Karan Khanna from Ambit Capital. Please go ahead. Yeah, thanks for the opportunity. Sanjay, just a couple of questions from my side. Firstly, I think in a recent interview, you spoke about increasing the indexation towards leisure to about 20% of the portfolio, while office assets should contribute to about 25% of the total PNL. Can you talk a bit about what kind of markets will you be targeting beyond Goa? And secondly, where we are in terms of the cycle, the hospitality cycle, do you think allocating capital towards the leisure portfolio at this point seems an attractive proposition?... Hello? I'm sorry, I'm sorry, I had my mic on mute. Apologies for that, Karan. Yes, we believe that, you know, getting about 20% of the portfolio in the leisure space is a good strategy. It will continue to support overall growth for the portfolio. Currently, we've got Dukes at Lonavala. We've got Aravali outside Delhi. We operate a small resort in Madh Marve for the group, and Goa is something that we've announced. Look, it's all going as per stated strategy for over the last few years. There's no, no, sort of, major deviation to that. We have stated we'd like to be in the big markets of Goa and Rajasthan. We said we'd like to be in the driving distances of Delhi, Mumbai, and, you know, other big cities in the country. We did say that we'd like to be in the Himalayas somewhere. Those are all opportunities that we are looking at. As and when something comes by, we will come back to all of you, and share what we're doing on the pipeline growth side. Goa, we believe, can be deeper than just one hotel, and we'll continue to look for opportunities more than just the one option that we have currently. Sure. Secondly, on Bengaluru, where you have about 120-130 keys getting added at the Whitefield property. Now we've seen another listed hotelier also acquiring an asset in the Whitefield micro market, and they are looking to add another 200 keys to the existing portfolio. So can you talk a bit about the Bengaluru, in particular, the Whitefield micro market and, with the kind of supply that's coming, how should we think about the overall occupancy and rate growth potential in that micro market? So, Karan, you referred to another hotel company adding inventory and announcing more growth, so have we. It just should give you more confidence in the market, given that two seriously listed hotel investment companies are looking at growing the Whitefield market. So it's clearly a positive market, and we'll continue to explore that. We are only a few months away from opening these rooms, and we believe by end of this current quarter, we'll have those rooms ready, and maybe by January with licenses in place, we could start commercial operations for those additional rooms. Sure. And lastly, on Koramangala, Bengaluru project, where you managed to sell about 32 units this quarter, which is also at a 16% higher ASP, which is inside the core average. So, can you talk a bit about, you know, what kind of timeline are you looking at for monetizing the balance 68 units in this project? I think it's another two to three quarters at most. I think three quarters is a safe assumption to make. We also have that 140,000 sq ft of the office tower, which is. And as of now, we're looking at selling it but closer to completion. We believe that there's still some upside on the rates for the balance 68 units, and we'll continue to pursue that. That's the timeline. Sure. Thanks, Sanjay. I'll come back to you. Thank you, Karan. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, please limit yourself to two questions per participant. The next question is from the line of Raghav Malik from Jefferies Group. Please go ahead. Raghav, your line has been unmuted. Please go ahead with your question. Hello. Yeah, sorry about that. Am I audible? Yeah, we can hear you. Thank you. Okay. Thank you for the opportunity. So I just wanted to ask a bit more about the RevPAR essentially. I know you don't give guidance, but you know, how has RevPAR tracked across the three months for the quarter? If you could tell us, and you know, is there any further sort of normalization, like similar to how we've seen in the industry, where in July, August has been you know much stronger in September, you know slightly on the lower side with the mid to high kind of similar number? Yeah. So, Raghav, thank you for the question. You know, July was a strong month. We saw August do reasonably well. And, whilst we were concerned, as I said earlier, on the first 20 days of September, we saw a very strong uptake once the holidays and the, you know, heavy rains were over. And we caught up the gaps, and closed with a positive story or variance to the previous year's quarter, too, which was reassuring. We do not give guidance on going forward, but, you know, on a same store basis, last quarter, we grew by 12%, on a RevPAR basis, and I see no reason why we will not have similar range of growth going forward. Okay. Okay, thank you. And, my other question is on, you know, the CapEx that has been slightly pushed, in terms of Taj Delhi and Taj Regency. So could you just provide some more detail on that, please? Taj Delhi, as many people on the call will know, is a shell that's been developed by our landlord there, which is Delhi International Airport Limited. They've had some challenges with the monsoon and flooding the site. It's a three basement site. The pace has picked up extremely well in the last one month or so. I'm very happy with the pace of development there, but it's still resulted in some delays, and we thought it's best to at least guide all of you on the delay that's there, so you are aware of it, and therefore we expect it to be completed now, maybe in the month of June of 2026. We expect our team to move into the site in January. That's when the site will be ready for our team to start work on the MEP and the fit-outs with the lower floors and basement. Then progressively, they'll continue to give us a floor at a time. It's not a very high building, it's just around plus six stories, around plus seven, I don't recall exactly. But in that range, and we are hoping that with the one and a half years from January, we should have completed the fit-outs and the hotel will be ready for commercial opening. On Airoli, we had said that we will get the approvals around this quarter, and we will come back to you as soon as we hear back on that. I must though use to share that there could potentially be delays in approval only because of the Maharashtra election that's been announced, and there will be some time to stabilize post-election, and I think that will also just so that I can cover the earlier question that was asked in terms of our growth for this quarter, we expect that there could be some impact during those one or two days of elections in Mumbai and Pune on the business, but that's going to be a one or two day impact. Bangalore and Mumbai won't have that problem. Okay. Sure, sir, and sorry, I just missed the CapEx number. You had mentioned something for the next six quarters. What would that be, the number? CapEx guidance. The CapEx is INR 15 billion for the next six quarters. Or INR 1,500 crores- Yeah. is the CapEx for the projects that we've shared with you. But that's for the next six quarters. Next six quarters. Yes. Okay, got it. Thank you so much. Yeah. Thank you. Thank you. The next question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead. Yeah, good morning, everyone. Thank you for the opportunity. So the first question is on our leasing guidance. Obviously, you reiterated that by the, by March, you're looking to lease a majority of the space. Could you give us some more color on the Bangalore and Powai market separately, how they would trend in terms of the leasing traction? And, from, let's say, Q3 of this year, are you expecting some QOQ pickup in the, rental income, because of the leasing we have done in the previous quarters? Yeah, that is the first question. Thanks, Adidev. I will let Nitin come back with details, but just as a quick overview, between leased and LOI signed, we're roughly at 38%, 36% at Powai, but we've got another 33% to be signed in the next few days. And when I say a few days, it's literally before Diwali, hopefully that we'll be able to sign that. So we'll get to about 70% as far as Powai is concerned. In Bangalore, in the new tower that we built, I think we are how much? About 50. I'll let Nitin come back with details. But we're getting good traction in Bangalore. Slower than we expected. The challenge was there were two large business tech parks that had also been built in the vicinity. They've now got a job, and we believe our traction will pick up. But Nitin, if you have any further color to share on this? Yeah. So, you know, on a total Bengaluru front, we have around close to a million sq ft as a GLA, out of which 55% is already leased, four percent is more, which is in the process of LOI signed. So it's more from a committed perspective, we are already 60% committed over there. In terms of pipeline, we have around two lakh thirty-one thousand, which, you know, from by end of December, we are looking at getting a final negotiation. There is certain evaluation of relocation happening for one of the big clients, which probably we will get better news by end of December. In the second Whitefield, we are looking at education sectors, some of the big corporates coming in, which is around 56% vacant. We will get the first site visit completed by December end on that. On the Powai part, as Sanjay has already told, we are almost like on the verge of closing discussions with the biggest corporate. We do see that by end of this year, March year, we will see almost 90% of getting leased out. Okay. Thanks. Yeah. So just to sort of add to that, the leasing rates continue to be strong and robust. They are as per the earlier indication that we've given and with the inflationary growth on the base rates also in there. Okay. So just to understand correctly, you're saying across Bengaluru and Powai, you are expecting to get to a leasing plus LOI of 90% by March 2024, right? Across all the assets, right? Yeah, right. Right. Okay. So the second question I had is on the international arrivals. Obviously, there has been a lot, lot of talk about that going back to pre-COVID levels. So could you give us some sense now that we are into the second half of the year, how do you see that trending? And, even let's say, what is the sort of dependence, is the domestic business making up for any shortfall, if any, in the international inward travel? Yeah, that's the second question. Yeah. So, look, clearly the domestic business continues to be extremely strong, and has supported us in the, you know, previous quarters, almost what, six, seven quarters now, to make up for the gap in the foreign tourist arrivals. Foreign tourist arrivals, as per the air passenger data, is almost back to pre-COVID. In our case, currently in quarter two, 33% of the room nights came from foreigners, as against 29%, last year, same quarter. But in terms of absolute room nights, we've grown from 52,886 foreign room nights to 65,565 foreign room nights, which is a 24% growth from last year same period. Clearly, we're seeing strong traction, and these quarter two is never not really the best quarter for foreign travelers to come into India. We look forward to this growing a little more aggressively in the subsequent quarters. Okay. Sir, but, what is the visibility? I'm just saying in terms of the, in terms of forward bookings and broadly, is it better than last year, or how would it trend or? It is definitely better than last year. Okay. That is all I can share. We don't give forward-looking numbers. I don't want to Okay. Okay, okay. Sure, sir. Okay, thank you. That's very helpful. Yeah. Okay, I'm done. Thank you. A reminder to all participants, please limit yourself to two questions per participant. The next question is from the line of Prashant Bihani from Elara Securities. Please go ahead. Thank you for the opportunity. Sir, what led to this sharp increase in other expenses? I'll let Nitin come in on the other expense side. Nitin. Other expenses, basically, there are few one-offs, and also revenue-linked expenses, which have got increased. One is, in terms of advertisement, very much for the residential sector, which is around close to INR 4 crore, which, you know, we have seen for Koramangala. Also in legal and professional expenses, which is again related to expansion, which we are doing strongly. That's also, you know, has an upside, which has come in. So these are the ones which are causing a major increase. Also, CRISIL rating, some of the expenses around, you know, Dukes demolition, you know, that also has contributed to one-time increase in other expenses. You know, just to recap it, it's the rating expenses, legal expenses for growth opportunities, and the residential advertising again. So out of this, sir, only this ad spend of four crore looks to be one-off, or you would not concur with that view? And if you can mention the total one-off, how much it could be. So while we are saying only advertisement is one-off, and I agree that that is one-off, but, you know, legal expenses are connected with acquisition opportunities. We acquired a land parcel in Goa this quarter, and the legal expenses to, for that have been captured in the other expenses. And then CRISIL is also was a one time, first rating, that we had, their expenses on. The continuous expenses that come from it will be of lower nature. Right. And, secondly, for Hitec Hyderabad, how do you decide on the rate? Is it fixed quarterly, yearly, monthly, given that we have one occupant for entire, all the rooms? So we have a quarter, we have a contract for three years, and all the rates are captured in that. In fact, in the current financial year, the rate increases have come twice, and the overall rate increase is about 30% for this quarter. In fact, my colleague just reminded me the first increase was in March, so it was not actually in this financial year, but there was an increase in August, which impacted this quarter's numbers, but overall, between March and August increases, on a year-on-year for quarter two, we've had a 30% rate growth, which has happened earlier in the past also. Yeah, but I mean, RevPAR due for revision. It's mostly twice a year, or...? It will happen once a year going forward. This was a one time, twice, in a twelve-month cycle that we had this captured in our agreement, because we started off on a lower rate, given that their own occupancy would build up over time. So we've got the benefit of that. On a RevPAR basis, Westin Hitec- Mm. is higher than every other hotel of ours. Okay. And lastly, Mr. Sethi, for Dukes, by fifteenth of December, how many rooms can be open for guests? We are 37 operating now. Now, gradually we're going to add another 36 rooms, so 73 by early December. We'll move into about 100 rooms by January, and all the 146 rooms by end of the financial year. Okay, sir. That's it. Thank you from my side. Thank you. Thank you. The next question is from the line of Dinesh Joshi from PL Capital. Please go ahead. Yeah, thanks for the opportunity. Sir, I have a question on our Goa hotel. I think in the last call, we were a bit hesitant in giving out the CapEx number. So is it possible to give some color on that now? Dinesh, we expect roughly a spend of INR 2 crore per key, including land. Maybe a little over that, plus IDC, et cetera. Out of which, about INR 1.3-1.5 crore will be spent on construction costs. The balance is the land cost and whatever the transaction costs. This, since we're speaking about this particular opportunity, I must say that this is quite a stunning location. We've got wide sea frontage. It's a flattish land, so the views are going to be clear. There's no sand dunes covering the view from the main construction site where we build the hotel. It's very conveniently located from an access perspective. Sure. So, one follow-up on this part, this INR 1,500 crores of guidance in terms of CapEx that we have given for the next six quarters, does it include anything for our Goa hotel? If not, when are we expected to kind of start incurring the CapEx towards that? So, yes, it includes Goa, but Goa will of course build up over the next few quarters. We expect to spend at least another six months to get the approval, and therefore there'll be you know that much of limited spend in Goa for the next two quarters. Understood. Sir, one last question from my side. I mean, if I look at our net debt, it has gone up from about INR 1,530 crores in the last quarter to about INR 1,665 crores. Now, given that we recently raised money to repay the debt and we have an OCF generation of about INR 385 crores in Q1. And I think also in the opening remarks, the CFO mentioned that majority of the CapEx that we did in Q1 was funded by internal accruals itself. Then any specific reason why the debt levels have gone up when I compare it with the previous quarter? We had raised INR 1,000 crore from a QIP to enable our balance sheet to be able to handle growth opportunities. That's what's getting executed now. There will be variations on the net debt side as we grow the portfolio, and expect us to peak at no more than INR 1,850-1,900 as things go currently. Sure, sir. Got that. Thank you so much. Thank you. A reminder to all the participants that you may press Star and One to ask a question. The next question is from the line of Aman Goyal from Axis Securities. Please go ahead. Thank you. Thank you for the opportunity, sir. So my question is regarding, for example, the economy is facing sluggish growth, like FMCG is reflecting muted growth. So how do you see that impact, economy-wise on hospitality sector? So, Aman, thank you for the question. Look, I think the dynamics are different on the hospitality side in the country, driven by the arbitrage that we have between demand and supply. That demand and supply arbitrage hasn't changed since we last spoke. We believe that the demand will continue to grow in double digits. Supply side is expected to grow at about 7%. So we've got between 300-400 basis points gap between new supply and the demand growth, and therefore, the dynamics of the industry will be different than dynamics of FMCG. Okay. Okay, so my second question is regarding the real estate residential development in Bengaluru. So, correct me if I'm wrong, so I can see as of now, whatever you sold in the residential, you have not incorporated in your top line. It is all the revenue related to real estate is deferred. So when we can expect that to be added into your top line? So, Aman, revenue recognition is governed by certain laws of the country. While our sales are very strong, the rates per square foot are very strong, and the cash flows are very strong. Revenue recognition can happen after a couple of triggers are activated. One of them is access of usable electricity. Right now, we're in project stage electricity on the site. Number two, certain amount of completion of access points and development of public areas within the property. And, of course, OCs. OC, we've already cleared. Electricity connection we should get maybe by December. Also, and the completion of access also around December. We do expect a significant reporting in last quarter of this year on the residential side, which will have revenue recognition, of course, all the cost recognition that we would like to continue to keep in the CapEx side for now, till we are able to bring it to the P&L. So expect quarter four to have a recognition of revenue and cost for the residential project. Okay. Thank you. Thank you so much. Thank you. Thank you. The next question is from the line of Pradyumna Choudhary from JM Financial. Please go ahead. Yeah. Hi, sir. I just wanted to get your sense on if we are seeing different demand trends across industry, like, not for Chalet, more from an industry point of view. Are we seeing some different demand trends, for example, metros versus non-metros and so on? That's the first one. And second, I know Q3, Q4, we are expecting these to be strong quarters, but, what's your sense like from here on as well, is there a further scope for ADRs to increase further in FY 2026?... That's the second one, and third would be, what was during the last hotel upcycle, what was the peak occupancy versus what it is now currently? So, Pradyumna, I'll try and answer these questions in the same sequence. In terms of market-wise or city-wide performances across India, we've seen Hyderabad clearly do extremely well. In recent weeks, we've seen Bangalore picking up and doing extremely well. We've seen our Pune hotels record very good occupancies, despite having the largest inventory in the city of 311 rooms. And Mumbai, we see a steady growth on RevPAR basis. Resistance, if any, I mean, as far as, and this is purely my personal understanding, we have seen in the very expensive rate brackets of, you know, north of INR 25,000, where we've seen some resistance to the price point. At the INR 15,000 price point, we have seen zero to negligible resistance, minimal negligible. All right. Understood. And so the remaining two questions- You said peak occupancies, right? On ADRs, right? Yeah. So ADRs, to your question on Q3, Q4. Yes, Q3, Q4 will see, increase in ADRs for sure. For twenty twenty-six, I'm not at liberty to share, what, the forward-looking numbers are. But, on the back of the positive arbitrage and demand supply, I see no reason why we, the country should not see, continued growth both on ADRs and occupancies. On your question about peak occupancies, I think they're very different in each city. For example, cities like Bengaluru and Hyderabad, where they have a sharp dip during on Friday evenings and continue till about Monday morning, that will continue, so they will have a different peak occupancy trend, which should be in the, mid-seventies to high seventies at a max. Mumbai, however, tends to record 80+% occupancy at peak, and therefore, I expect Mumbai to be able to do that. Delhi also sees typically 75%-80% occupancies as a range at peak levels, and we expect Delhi to be in that range. Hyderabad city center Hyderabad has had some challenges, but the new district, where both our hotels are present, we've seen do extremely well. The other element that I must mention here is that H1 saw almost negligible weddings in the country due to auspicious days not being there. H2 is likely to, on all India basis, have a material kick up on account of the weddings. We expect that to have a benefit to us in our Taj in Delhi, JW Marriott Sahar, and our banquet. So, my question on peak occupancy was more from a cycle perspective rather than the current time- To average our peak occupancy on a country as large as India and very diverse in terms of a demand trend. So I've given you what the peak occupancies should be city-wide from the main, main cities. So Mumbai, at peak occupancy, as I said, should be in the eighties, near low eighties. Delhi, between seventy-five and eighty. Hyderabad and Bangalore, around seventy-five to eighty mark. Okay. This is for each city for the cycle you're saying, right? Like, during the hotel, peak cycle or something of that sort. That's right. All right. Thank you so much. This is very helpful. Thank you. Thank you. As there are no further questions, we have reached the end of our Q&A session. I would now like to hand the conference over to Mr. Sanjay Sethi for the closing comments. Thank you so much. Thank you everyone for your time, and we look forward to engaging with you in the near future. Thank you. On behalf of Chalet Hotels Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.