Chalet Hotels Ltd. share price target

Chalet Hotels Ltd.'s (Chalet) Q1FY26 result beat to our estimates on key parameters. The company included sale from residential property in Koramangala, Bengaluru in Q1FY26 which further boosted the earnings. Despite external disruption in Q1, the sector remained resilient, with demand continuing to outpace supply in India. Structural demand drivers are seen as strong and more resilient than in past cycles. The management aims to reach 5,000 room inventory by end of FY26 and they expect Sahar, Powai, Hyderabad and Bengaluru to witness increasing average room rates. We have included sale...

We maintain our BUY recommendation on the stock.

handed over at Koramangala, Bangalore in 1QFY26. on YoY basis or with our estimates. Excluding the residential business, CHALET IN's operating performance was better than our estimates with EBITDA margin...

Chalet Hotels’ (CHALET) Q1FY26 hospitality revenue and EBITDA grew 18% and 20% YoY, respectively, led by 7% same-store RevPAR growth.

For FY25 overall, Chalet Hotels’ (CHALET) hotel revenue has grown by 18% YoY to INR15.2bn while EBITDA has grown 19% to INR 6.8bn. As of Mar’25, CHALET has 3,314 operational hotel keys across 11 hotels, along with 2.4msf of annuity rental assets.

CHALET reported better than expected performance with EBITDA margin of 46.3% (PLe 44.9%) aided by 21.4% growth in RevPAR and strong traction in leasing income. Apart from continuing momentum in RevPAR, near term growth in the hospitality business is likely to be driven by addition of ~450 keys at Khandala and Delhi over the next 2 years. Pipe-line for long term is stronger with plans to add new hotels in Goa, Airoli and Kerala which will take the total key count to ~4,500+ in next 4-5 years. Even the annuity business has started gaining traction with an expectation of reaching an occupancy of ~90% in next...

Chalet Hotels’ (Chalet) Q4FY25 revenue and EBITDA grew 20% and 22% YoY, respectively, led by 23% same-store RevPAR growth. For FY25 overall, hotel revenue grew 18% YoY to INR 15.2bn while EBITDA was up 19% to INR 6.8bn.

Chalet Hotels (CHALET) has announced the completion of the acquisition of 141 keys 5-star luxury hotel – The Westin Resort and Spa, Himalayas (TWRS) in Rishikesh at an acquisition cost of INR 5.3bn.

We maintain our BUY recommendation on the stock.

Chalet Hotels (CHALET) delivered in-line Q2FY24 revenue of INR3.1bn and adjusted EBITDA of INR1.3bn with RevPAR growing 25% YoY to INR7,034. Wile industry peers are focusing on the asset light expansion route, Chalet has chosen to grow its hotel room and office rental portfolio over FY23-27E through the ownership route (mix of existing project expansion and long-term leases).

We believe that Chalet Hotels (Chalet) is well poised to benefit from the strength in demand, especially for premium and luxury hotels in India’s Tier cities. While industry peers are focusing on the asset light expansion route, Chalet has chosen to grow its hotel room and office rental portfolio over FY23-27E through the ownership route (mix of existing project expansion and long-term leases).

Chalet Hotels (CHALET) delivered in-line Q1FY24 revenue of INR3.1bn and adjusted EBITDA of INR1.3bn with RevPAR growing 24% YoY to INR7,182. While industry peers are focusing on the asset light expansion route, Chalet has chosen to grow its hotel room and office rental portfolio over FY23-27E through the ownership route (mix of existing project expansion and long-term leases).