Corporate Presentation November 2019 1
What Defines Us Pedigree K Raheja Corp Leading real estate developer in India for over Four Decades Proficiency Right Assets Right Location Right Partnership Right Team Performance Robust Operating Performance 2
K Raheja Corp – A Group Overview 4 Decades of experience Pan India presence 9,500+ employees Office Hospitality Malls Residential Retail Developed residential spaces Leading retail platform - 2,700+ (1) operational keys Developed >25 msf 2.5 msf area across 6 malls across 6 key cities 290 stores across India Partner with Marriott (2) 1. Chalet Hotels - 2,331 keys and others Including joint ownership assets 3 2.Marriot Hotels India Pvt. Ltd and its affiliates
About Chalet.. 4
Well Positioned to Benefit from Industry Trends Located in INR 3,668 Mn INR 10,348 Mn High Density / 35.5% Hospitality the leading Business Districts About the Com Ab Company business driver Mumbai, Bengaluru, EBITDA and EBITDA Total Income – FY2019 Hyderabad Margin – FY2019 (FY19 Total Income) Others Commercial 8% and Retail 4% 2,331 Operational/ INR 9,137 Mn INR 3,566 Mn ~580 Proposed / 39.0% Port ortfolio of of High igh-End Pipeline Hospitality Segment Profit Branded Hot Br otels Hospitality Revenue – Keys as of 31 st March 2019 before Interest Depreciation FY2019 and Tax / Margin % – FY2019 Hospitality 88% Hot otel-led ~483K sq.ft. ~384K sq.ft. 1.12 MM sq.ft. Complementary Mix ixed-Use Rea eal Es Estate Mixed-Use Commercial & Mixed-Use Retail Space Pipeline Mixed-Use – Cou Countering g Cy Cyclical ality Office Commercial Office of of Hotels 5
Our Hotel Portfolio JW Marriott Mumbai Sahar Bengaluru Marriott Hotel Whitefield The Westin Hyderabad Mindspace (427 Keys) (588 Keys) (391 Keys) Strategically Chosen Brands at Key Locations Leading to Market Leadership Lakeside Chalet, Mumbai-Marriott Executive Renaissance Mumbai Convention Centre Hotel (600 Keys) Four Points by Sheraton Navi Apartments (173 Keys) 6 Proposed to be rebranded as ‘Westin’ in 2020 Mumbai, Vashi (152 Keys)
Portfolio of High-End, Globally Recognized, Branded Hotels 588 Top tier 600 173 5 star 2,179 Deluxe Luxury Keys * 152 Luxury – Upper Upscale Mumbai Hyderabad 152 Bengaluru 4 – 5 Keys star Upscale 3-4 Upper-Midscale star 391 427 2-3 Midscale-Economy star * Under Franchise Agreement, Leasehold Land 7
65% of Current Inventory in the Financial Capital of India Located in Central Business District and New Business Centers of Mumbai Metropolitan Region Favorable Demand/Supply Dynamics Current Inventory Proposed Pipe-line (1,513 Keys) Inventory (~410 keys) + Infrastructure Opportunities 1 augurs well for the City ~260 773 ~150 • New Airport under-development in Airoli Powai Navi Mumbai 588 • Metro Lines 152 2 Sahar • Mumbai Trans Harbor Project Vashi • Coastal Road • Expansion of JNPT terminals • New Business District in Navi Mumbai 1. MoU executed for the brand 8 2. LoI executed for the brand
Strategically placed in Business Cities Located in New Business Centers Bengaluru Hyderabad Current Inventory 391 427 Mindspace Whitefield ~170 Proposed Pipe-line Inventory 1 Ongoing Infrastructure Developments in the Micro Markets Hyderabad Bengaluru • Metro Line • Metro Line • Improved road infrastructure • 1. MoU executed for the brand IT and Fintech development 9
Hospitality City-wise performance FY19 Segment Revenue Rs 9,137 Mn FY19 FY18 FY17 CAGR Total Keys 2,331 2,328 2,259 1.6% ADR (Rs.) Bangaluru 17% MMR 8,086 7,629 7,700 2.5% 8,968 1 Bengaluru 8,756 8,620 -1.2% Hyderabad Hyderabad 8,205 7,896 7,792 2.6% MMR 18% Combined 8,218 7,840 7,822 2.5% 65% Occupancy % MMR 76% 73% 67% 900 bps 74% 1 Bengaluru 77% 75% 300 bps FY19 Segment Profit* Rs 3,566 Mn Hyderabad 76% 72% 69% 700 bps Combined 76% 73% 67% 900 bps RevPAR (Rs.) Bengaluru 20% MMR 6,178 5,543 5,126 9.8% 6,665 1 Bengaluru 6,757 6,447 0.7% Hyderabad MMR Hyderabad 6,234 5,694 5,349 8.0% 17% 63% Combined 6,283 5,716 5,276 9.1% MMR: Mumbai Metropolitan Region *Segment Profit before Interest Depreciation and Tax 1 FY17 performance includes full year of Bengaluru Hotel, though statutory financials include 10 Bengaluru Hotel revenues and expenses only from November 1, 2016 (effective date of merger)
Business Model Built Upon Principles of Active Asset Management Market Leading Operating Parameters ✓ Actively engage with hotel management team at each hotel to set operational and financial targets Employee Cost as a % of 14% Revenue (FY19) ✓ Staff per room ratio at 1.2 Drive performance through structured monthly review of reports generated by each hotel Power & Fuel Cost as a % of 7% ✓ Revenue (FY19) Discuss and optimize pricing strategies to maximize room yield Consistent improvement in Operating Performance ✓ Hospitality Margins%** Conduct periodic meetings with hotel operator’s leadership teams 40.7% 40.5% ✓ 430 Bps Review competitor set performance and penetration 36.4% ✓ Review and execute renovation plans FY17 FY18 FY19* * Excludes impact of Forex Movement Rs 154 Mn 11 ** Segment Profit before Interest Depreciation and Tax
Development of Hotels at Optimal Cost, Design and Build Identification of Location, Land Acquisition (In Rs. Mn) • Comprehensive market selection process • Management’s expertise and know -how plays a vital role in location selection Gross Block per Key Project Planning 11.5 11.4 11.4 • In-house teams that cater to various facets of Group Expertise Group Expertise project planning • Knowledge of • Knowledge of • Robust use of technologies and products to Infrastructure Infrastructure Development drive efficiencies Development • Benefit of Scale • Benefit of Scale Execution and Construction • Possession of Land Banks FY17 FY18 FY19 • Standardized designs and defined process → • High competence on streamline cost and time land acquisitions • Obtain the requisite approvals and clearances *Excluding Revaluations • Monitor development process, costs and quality 12
Hotel-led Complementary Mixed-Use Commercial and Retail Developments Strategy of co-locating projects augur well for Business Demand coupled with optimal utilization of available land Office and Retail (0.9 Mn sqft) Inorbit Mall Office Tower Whitefield, Bengaluru Whitefield, Bengaluru 260K sq ft of Retail area 109K sq ft (Multiplex under construction) The Orb Office Tower Sahar, Mumbai Sahar, Mumbai 123K sq ft Food & Beverage 374K sq ft in Prime Location Hub in Prime Location 13
Proposed Development Pipeline in Key Business Districts Hotel and Convention Center Hotel Commercial Location Renaissance Complex, Powai Airoli, Navi Mumbai Renaissance Complex, Powai Proposed Brand ‘W’ 3 Hyatt Regency 4 - 2022 1 2022 1 2021 1 Est. opening Keys / Total Build Up Area ~150 Keys & ~40k Sqft Convention Center ~260 ~750k Sqft Leasehold 2 Ownership Freehold Freehold Commercial Hotel Location: Marriott Complex, Whitefield Location: Mindspace, Hyderabad Est. opening: 2021 1 Proposed Brand: Westin 3 Hyderabad Mumbai Total Build Up Area: ~400k Sqft. Est. opening: 2020 1 Bengaluru Ownership: Freehold Keys: ~170 Ownership: Leasehold 5 Residential Location: Koramangala Note 3. MoU executed for the brand 1. Dates are based on management estimates, subject to approvals 4. LoI executed for the brand 2. MoU for lease executed 5. Lease deed Executed 14
Sustainable Development & A Better Tomorrow Energy Initiatives ✓ 42% of electricity sourced from renewable energy sources (FY19) ✓ Power consumption down 9% per key (FY16 to FY19) Minimizing Plastic Usage ✓ Shifting to Bio-degradable plastic Water Management wherever possible ✓ Rain-water harvesting ✓ Single-use plastic usage being phased out ✓ Aerators for water taps & Showers Waste Management On going key Initiatives ✓ Sewage Treatment Plants ✓ Installation of Water bottling plants at the Hotels – ✓ Organic Waste Composter replacing plastic bottled water with glass bottles ✓ Responsible disposal of e-waste ✓ Recycle used cooking oil 15
Socially Responsible Partnering with TRRAIN Creating Livelihood and skilling Differently Abled People through an initiative called Pankh by TRRAIN • Chalet Hotels Limited training 40 young people • Targeting to train ~100 individuals by the end of FY20 TRRAIN is a public charitable trust formed in 2011, with the vision of empowering people in India through skills development. 16
Awards & Certifications Loved By Guest Award Winner 2019 - Expedia – Four Points by Sheraton, Vashi USGB Gold Leed Certification – JW Marriot Mumbai Sahar - Marriott Whitefield Bengaluru Most Luxurious Spa Treatment 2019 – J W Marriott Mumbai Sahar Best Business Hotel in Maharashtra Business Leaders Award 2019 – Four Points by Sheraton, Vashi Best Business Hotel South Region 2 nd Quarter 2019 Awards – The Westin Hyderabad Mindspace Hotel Manager of the Year National Award 2019 – J W Marriott Mumbai Sahar Executive Chef of the Year (West Zone) PR Manager of the Year (West Zone) – Renaissance Mumbai Convention Centre Hotel 17
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