Chalet Hotels plans 1,655 new keys, targeting 5,000-plus rooms by March 2030
ICICI Securities retained its Buy call on Mumbai-based Chalet Hotels, citing Athiva’s launch, franchise expansion and a planned addition of 1,655 hotel keys. The brokerage forecasts 15% hotel-revenue CAGR and 16% hotel-EBITDA CAGR from FY26 to FY29E.
What happened
ICICI Securities retained a Buy on Mumbai-based Chalet Hotels with a ₹1,095 target, citing Athiva’s launch, franchise expansion and plans to add 1,655 keys to
Key facts
- 27% upside
- ₹1,095 target price
- ₹883 closing share price
- ₹19,337.18 crore market capitalisation
- 1,655 additional hotel keys
- over 5,000 keys by March 2030
- 15% hotel revenue CAGR (FY26-FY29E)
- ₹26.9 billion FY29E hotel revenue
- 16% hotel EBITDA CAGR (FY26-FY29E)
- ₹11.8 billion FY29E hotel EBITDA
- over ₹4 billion annual annuity-asset EBITDA in FY29
- 22x March 2028E hotel EV/EBITDA
Why this matters
Chalet’s move toward a 5,000-plus-key portfolio highlights an active growth agenda combining new development, Athiva’s launch and franchise-led expansion opportunities.
What to watch
- Quarterly net room additions versus the 1,655-key plan and any revision to the 5,000-plus key March 2030 target.
- Occupancy, ADR and RevPAR trends relative to key metro and luxury-hotel peers.
- Hotel EBITDA margin progression, including pre-opening expenses and losses from newly opened properties.
- Net debt-to-EBITDA, interest-cost trends, operating cash flow and capex guidance.
- Construction-cost inflation, project approval timelines and announced competing hotel supply in Chalet's target markets.
- Growth in direct bookings, corporate contracts, loyalty enrollments, F&B revenue and events revenue per available room.
- Prioritize phased openings in supply-constrained metro, airport and premium leisure corridors to protect ramp-up occupancy.
- Use management contracts and franchises selectively to add rooms with lower capital intensity while preserving brand and service standards.
- Expand loyalty, direct booking and corporate-account partnerships to fill incremental inventory without materially increasing OTA dependence.
- Monetize mixed-use adjacencies through F&B, events, wellness, retail and office/leisure cross-selling to raise revenue per occupied room.
- Maintain disciplined capex sequencing and debt maturity management to avoid balance-sheet strain during simultaneous project execution.