Accumulate Chalet Hotels; target of Rs 921 Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Chalet Hotels with a target price of Rs 921 in its research report dated October 25, 2024.

Broker Research

October 28, 2024 / 14:55 IST

Accumulate

26 Aug, 2025 12:21

Volume

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Prabhudas Lilladher's research report on Chalet Hotels

Chalet Hotels reported a decent performance in a non-seasonal quarter with EBITDA margin of 39.7% (PLe 40.9%). After being in single digit for last 2 quarters, RevPAR increased 10% YoY to Rs7,756 allaying concerns surrounding waning pricing power. In the near term, growth in hospitality segment will be driven by operationalization of ~200 rooms in Lonavala & Bangalore. Pipeline for long term is stronger with plans to add to ~840 rooms at Delhi, Navi Mumbai and Goa over the next 3 years. On annuity business as 90% of the portfolio is expected to be leased out by end of FY25E we expect strong traction in leasing income from next year onwards. We broadly maintain our estimates and expect revenue/EBITDA CAGR of 18%/21% over FY24-FY27E.

Outlook

We maintain our ACCUMULATE rating on the stock with a TP of Rs921 as we value the hotel business at EV/EBITDA multiple of 24x (no change in target multiple), annuity portfolio at a cap rate of 8.5% and the residential project at NAV of Rs29 per share.

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