Shares of Chalet Hotels gained nearly 1 percent on March 1, a day after the company said it would acquire its partners' share in Ayushi and Poonam Estates LLP, the owner of Courtyard by Marriott, Aravalli Resort, in the National Capital Region (NCR) for Rs 315 crore.
The board of directors of the company considered and approved the acquisition at its meeting held on February 29, Chalet Hotels said in a regulatory filing.
The cost of acquisition, to be carried out for cash consideration, is pegged at an enterprise value of Rs 315 crore, to be adjusted for net current assets, including cash. The transaction is likely to be completed by March 10, 2024, the company said.
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"At the time of admission into the partnership, Chalet Hotels Limited and Sonmil Industries Private Limited (wholly-owned subsidiary) have infused Rs 4.9 lakh and Rs 0.1 lakh as their respective capital contribution," the company said.
In the previous session, shares of Chalet Hotels closed 0.7 lower on NSE at Rs 814.00. So far this year, the stock has rallied 17 percent, outperforming benchmark Nifty 50 which has risen over 1 percent during this period.
For the quarter ended December 2023, Chalet Hotels reported a consolidated net profit of Rs 1,024 crore, compared to a loss of Rs 144 crore in the year-ago period. Its total income surged by an impressive 94 percent to Rs 320 crore.
The company expects bullish growth over the next four to five years on the back of the benefits of supply-demand arbitrage in the country.
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