Chalet Hotels up 7%, hits record after Axis Securities initiates with 'Buy'

The rally in Chalet Hotels share price came after domestic brokerage Axis Securities initiated coverage with 'Buy' on Chalet Hotels, for a target price of Rs 1,191 per share, as per reports

Chalet Hotels share price: International high-end hotel operator Chalet Hotels shares rallied up to 6.63 per cent to hit a fresh record high (all-time high) of Rs 989.35 per share on Thursday, December 12, 2024.

 

The rally in Chalet Hotels share price came after domestic brokerage Axis Securities initiated coverage with ‘Buy’ for a target price of Rs 1,191 per share, as per reports. This target price indicates an upside of 28.4 per cent from the previous close (December 11) of Rs 927.75.

 

Chalet Hotels Limited (CHL), established in 1986 and part of the K Raheja Corp, is a leading owner, developer, asset manager, and operator of premium hotels and resorts in India. 

 

 

The company currently operates 10 high-end hotels and resorts, offering a total of 3,052 keys, in partnership with globally recognised hospitality brands such as JW Marriott, The Westin, and Novotel. 

 

With approximately 1,000 additional rooms under development, CHL is poised for further growth. Beyond hospitality, the company is expanding its commercial real estate portfolio from the current 2.4 million square feet to 3.3 million square feet.

 

Chalet Hotels financial performance

 

Chalet Hotels' total income climbed 20 per cent year-on-year (Y-o-Y) to Rs 380 crore, as compared to Q2FY24. Its total earnings before interest, tax, depreciation and amortisation (Ebitda) zoomed 20 per cent Y-o-Y to Rs 160 crore, from the same quarter a year ago.

 

In the hospitality segment, the revenue rose 18 per cent Y-o-Y to Rs 330 crore. The Average Room Rate (ARR) stood at Rs 10,532, up 10 per cent Y-o-Y. Meanwhile, the company’s occupancy stood at 74 per cent during the September quarter of financial year 2025. 

 

During the quarter, the company also acquired 11-acres beachfront land in the pristine white sand beaches of Varca Goa with a development potential of approximately 170 upper upscale rooms.

 

On the financial performance of the company, Sanjay Sethi, MD & CEO of Chalet Hotels said, “We are pleased to report another outstanding quarter of growth, driven by positive momentum in room rates and backed by strong Ebitda margins, an indication that our strategic initiatives and efforts to drive operational excellence are paying off. Our upcoming 11-acre beachfront development in Goa is set to transform the region over the next three years. As we enter the second half of the year, we are confident in maintaining this upward trajectory to maximise returns across our diverse portfolio."

 

The market capitalisation of Chalet Hotels is Rs 21,405.92 crore, according to BSE. The company falls under the BSE 500 category. The 52-week low of Chalet Hotels is Rs 622.30 apiece.

 

At 1:20 PM, Chalet Hotels shares were trading 6.12 per cent higher at Rs 984.50 per share. In comparison, BSE Sensex was trading 0.25 per cent lower at 81,318.94 levels.