Chalet Hotels Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Sep 25
- 2 min read
by KarNivesh | 25 September, 2025
Company Overview
Chalet Hotels Limited, part of the K. Raheja Corp Group, operates in India’s premium hospitality space. The company owns and manages luxury and upscale hotels across Mumbai, Bengaluru, Pune, Hyderabad, and Rishikesh. With global partnerships such as Marriott International and Accor, Chalet has built a strong position in the market.
Business Model & Segments
Chalet follows an asset-heavy model, owning the properties it operates—unlike peers that run on asset-light contracts. This gives it more control over quality and long-term value. Its business has three main parts:
Hospitality – The core driver with 11 operational hotels and 3,351 keys.
Commercial Real Estate – Around 2.4 million sq. ft. of office space that provides steady rental income.
Residential Development – Ongoing projects in Bengaluru, which add diversification.
Financial Performance
The company’s numbers tell a story of resilience:
Revenue dropped to ₹294 crores in FY2021 due to the pandemic but jumped to ₹1,718 crores in FY2025, exceeding pre-COVID levels.
EBITDA margins stayed strong at 42.8% in FY2025.
Debt-to-equity improved significantly, falling from 1.89x in FY2022 to 0.84x in FY2025.
However, net profit margins fell to 8.3% in FY2025, mainly due to higher expenses and interest costs from expansion. EPS also showed some volatility.
Valuation & Market Position
At a current price of about ₹1,011.90, Chalet’s stock trades at premium valuations:
P/E ratio of 78.67x vs. industry average of 25-35x.
P/B ratio of 7.50x, also higher than peers.
These elevated valuations reflect investor confidence in Chalet’s growth pipeline and strong brand positioning.
Expansion Pipeline
The future looks exciting with several projects underway:
Over 1,100 new keys under development, targeting 5,000+ keys by 2030.
New hotels coming up in Goa, Kerala, and at Delhi Airport.
Commercial leasing expected to touch ₹300 crores annually by FY2026.
Strengths
Prime locations in high-demand markets.
Strong partnerships with global hotel brands.
Diversified revenue from hospitality, real estate, and residential projects.
Improved debt management providing financial flexibility.
Risks
High valuations make the stock sensitive to market corrections.
Cyclical nature of hospitality exposes it to economic downturns.
Heavy reliance on Mumbai region for revenue.
Promoter shares pledged, requiring close monitoring.
Investment Outlook
Brokerages remain positive with target prices between ₹1,058 and ₹1,191, indicating an upside. Chalet Hotels is best suited for growth-oriented, long-term investors who believe in India’s hospitality and tourism boom.
Conclusion
Chalet Hotels has come a long way since the pandemic setback, proving its strength and adaptability. With premium assets, a robust expansion pipeline, and strong financial discipline, it offers an attractive opportunity—though investors should be mindful of its premium valuation and sector risks.
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