CHALET

Launches In-House Brand Athiva Amidst Industry Supply Constraints

, the hospitality arm of K Raheja Corp, has introduced its first in-house hospitality brand, Athiva Hotels and Resorts, derived from the Sanskrit word for 'abundance'.Strategic Branding Focus: The decision to use Athiva versus a global chain's "flag" will be purely return on investment (ROI) driven and based on the specific property's location and expected returns, not a mandate to use only the in-house brand. The Athiva brand is specifically aimed at millennials and Gen-Z travelers seeking experiential stays. It is positioned in the 'upscale or upper-upscale' category, strategically avoiding the budget and luxury segments, which are considered more susceptible to economic volatility. The initial Athiva portfolio will encompass six properties, adding approximately 900 keys. These locations include the first property in Khandala (the former Duke's Retreat), Aksa Beach and Vashi in Mumbai (Vashi being a conversion from a Four Points By Sheraton), two sites in Goa, and one in Thiruvananthapuram. Chalet has committed a substantial Rs 1,300 crore in capital expenditure for the renovation of existing properties and the construction/purchase of land for new Athiva hotels. The Managing Director and CEO, Sanjay Sethi, highlighted a significant shortage of branded hotel rooms in India, noting that new supply growth has slowed drastically to only 3-4% annually. This slowdown is attributed to the capital-intensive nature of the business, high-interest rates, and prior investment mistakes by non-professional hotel investors. Chalet currently owns 11 properties with around 3,300 keys, managed by brands like Westin and Marriott. Overall expansion plans, including Athiva and new hotels in Delhi and Airoli, Navi Mumbai, aim to add a total of 1,200 keys to its portfolio. The company can also potentially convert existing third-party managed hotels to the Athiva brand as their contracts expire.