Buy Chalet Hotels; target of Rs 562: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Chalet Hotels has recommended buy rating on the stock with a target price of Rs 562 in its research report dated July 31, 2023.

Broker Research

August 01, 2023 / 15:05 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Chalet Hotels

Chalet reported a decent performance with RevPAR growth of 24.0% YoY to Rs7,182 and we expect current buoyancy to continue in light of 1) ongoing G-20 events 2) upcoming cricket world-cup and 3) expectation in FTA revival. Moreover, full-fledged benefits of asset sweating are expected to accrue in near future as 88 rooms at Novotel Pune will begin operations soon (OC awaited) while 0.3mn sq ft of area at Bangalore will be ready for handover to tenants in 3QFY24. Buoyed by healthy RevPAR growth and operationalization of hotel/commercial assets, we expect revenue/EBITDA CAGR of 25%/31% over FY23-FY25E.

Outlook

Accordingly, we increase out TP to Rs562 (Rs504 earlier) as 1) we raise our ASP for Koramangala project to Rs15,500 2) re-align our capitalization rate for annuity business to 9% and 3) increase our hotel business target EV/EBITDA multiple to 17x (earlier 16x). Retain BUY on the stock.

For all recommendations report, click here