Chalet Hotels Soars: 27% Upside Predicted

Chalet Hotels Limited's shares concluded Wednesday, September 23, on an upward trend, continuing a positive trajectory from the past five trading days. The company has demonstrated a 4.7% return in the last week and approximately 2.5% over the past month.

This Mumbai-headquartered hotel chain has strategically evolved beyond being solely an asset owner. By launching the premium lifestyle brand, Athiva, in FY26, Chalet Hotels has adopted a hybrid business model. Its expansion initiatives are progressing as planned.

The company's operational hotel portfolio is projected to increase by 1,655 keys, reaching over 5,000 keys by March 2030. This growth is supported by ICICI Securities, which forecasts a nearly 27% upside potential for the stock.

ICICI Securities has maintained a 'Buy' rating on Chalet Hotels, setting a target price of ₹1,095 per share. The brokerage anticipates Chalet's hotel revenue to grow at a 15% CAGR from FY26 to FY29, with EBITDA growing at a 16% CAGR during the same period. The firm's annuity asset portfolio is also expected to contribute significantly.

Chalet Hotels' stock closed at ₹883 per share on September 23, marking a 1.20% increase. The stock has seen varied performance over different periods, including a 24.3% surge in the last six months and a 60.90% increase over three years.