Buy Chalet Hotels; target of Rs 1,058: ICICI Securities

ICICI Securitie`s research report on Chalet Hotels

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. With company’s operational hotel portfolio growing by 1,371 keys to 4,564 keys over FY25-28E, we estimate its hotel revenue to grow at 17% CAGR to INR 20.8bn in FY27E and hotel EBITDA to grow at 17% CAGR to INR 9.0bn over the same period.

Outlook

Retain BUY with SoTP-based revised TP of INR 1,058 (earlier INR 1,017) based on Mar’27E, valuing the company at 23x EV/EBITDA, 8% cap rate for rental assets and residual value of Vivarea, Bengaluru residential project. Key risks: Slowdown in hotel demand and office leasing.