Chalet Hotels, that made its debut in the stock market on Thursday, raising Rs 1,600 crore via initial public offering (IPO), is expecting to bring down the debt from Rs 2,500 crore to Rs 1500 crore by the end of the day, said Sanjay Sethi, managing director and CEO of the company.

With this paring of debt, the debt-equity ratio would come close to 1:1 and the debt-EBITDA ratio would be about 3 times. "So, the company would not look to pare debt further from these levels," said Sethi.

“We have significant amount of cash flows which are building up and we will use that to build our Greenfield pipeline that we have. So we really don’t need fresh capital whether debt or equity to build the pipeline that we have put on the RHP,” he said.

"Historically, our growth has been aggressive at 23 percent on topline," said Sethi. Throwing some numbers, he said in H1FY19 occupancy had climbed to 75 percent and average room rates were around Rs 7,700.

“So, with the strength of the portfolio and the strength of the market, the fact that we are in an upcycle, combined together should continue to give us healthy numbers,” he added.

First Published:Feb 7, 2019 12:51 PM IST