Chalet Hotels Ltd. share price target

About the stock: Chalet Hotels Ltd (Chalet) is an owner, developer and operator of premium hotels, commercial office spaces and residential properties in India. The Company's portfolio comprises 11 fully operational hotels representing 3359 keys, across mainstream and luxury segments, and commercial spaces, representing...

Chalet Hotels Ltd.'s (Chalet) Q2FY26 result was below our estimates on key parameters as increased competitive intensity in MMR region weighed on net sales. However, on YoY basis, the company reported yet another robust quarterly performance. The management is very optimistic of a strong operating performance in the second half of the year for both business and leisure locations. The dip in Q2 occupancy was a temporary "blip" due to the addition of 166 new rooms. The company expects to be back to the occupancies they have been delivering in the past very quickly. The company introduced the new...

We value the stock at a EV/EBITDA of 20x on H1FY28E earnings, arriving at a target price of Rs 1,120/share, implying an upside potential of 17%. We maintain our BUY recommendation on the stock.

Chalet Hotels (CHALET)’s Q2FY26 hospitality revenue/EBITDA grew 13%/10% YoY, as new hotel openings impacted margins. The company expects robust demand in H2FY26 to flow into earnings.

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.