Chalet Hotels (K Raheja Corp Group) Signs Binding MoUs with Mindspace REIT for New ATHIVA-Branded Hotels in Pune and Hyderabad
Strategic Partnership Adds 381 Rooms to Chalet Hotels Portfolio
Chalet Hotels Limited has entered binding Memorandums of Understanding (MoUs) with two special purpose vehicles (SPVs) of Mindspace Business Parks REIT to secure long-term leases for hotel premises in Pune and Hyderabad. The agreements, disclosed on August 5, 2026, will add a combined 381 rooms to the company's portfolio under its upper upscale brand, ATHIVA.
ATHIVA Brand Expansion Strategy
Chalet Hotels Limited, part of K Raheja Corp, launched Athiva Hotels and Resorts in October 2025, a premium lifestyle hospitality brand aimed at attracting domestic, affluent millennials by positioning itself as an "upper/upscale" brand, which can take advantage of the better margins that premium offerings bring, while sidestepping the volatilities and uncertainties that budget and luxury segments face. The brand debuted through six properties with more than 900 keys, with the company allocating around INR 1,500 crore for this development.
The Pune and Hyderabad expansion aligns with the company's stated investment strategy to grow its asset base through strategic partnerships with real estate investment trusts. The move signals a continued reliance on asset-light growth models for Chalet Hotels Limited. By leasing from Mindspace Business Parks REIT, the company avoids the upfront capital expenditure associated with acquiring land and constructing buildings from scratch. Instead, capital is directed toward fit-outs and operational readiness.
Investment and Fit-Out Costs
The deal adds 381 rooms under the ATHIVA brand, with fit-out costs of Rs.10.8 Million per key in Pune and Rs.13.5 Million per key in Hyderabad. The company intends to finance these capital expenditures through a combination of internal accruals and debt.
Development Timeline
The Hyderabad project is scheduled for completion earlier, with capacity addition targeted for FY2028-29, while the Pune facility is slated for FY2030-31.
Mindspace REIT's Broader Hospitality Strategy
Mindspace Business Parks REIT, sponsored by K Raheja Corp group, was listed on the Indian bourses in August 2020. Mindspace REIT offers Grade-A integrated business parks, standalone office buildings, and high-tech data centers across key commercial districts in Mumbai, Hyderabad, Pune, and Chennai. The portfolio comprises 31.9 msf completed area, 3.6 msf under construction area and 3.5 msf future development area.
This partnership complements Mindspace REIT's existing hospitality presence. The mixed-use project in Mindspace Madhapur Hyderabad involves an investment of Rs 350 crore by the REIT and is expected to be completed by the fourth quarter of FY28. The planned hotel in Hyderabad will be the third on-campus hotel at Mindspace Madhapur, alongside two existing Westin branded hotels and the Inorbit Mall. It will add to the existing 13 million sq. ft. of Grade A office space that already hosts more than 100,000 professionals.