Chalet Hotels launches all-women operated hotel in Hyderabad, stock gains marginally

Chalet Hotels shares were up nearly 1 percent on June 6. The hotel chain launched its new all-women operated hotel in Hyderabad, the Westin Hyderabad Hitec City, in partnership with Mariott International on June 5.

“This hotel is unique in more than one way. Not only is it going to be sold out from day one, an equally path breaking event is that it will be launched by an all-women team,” Sanjay Sethi, Managing Director & CEO, Chalet Hotels said.

At 9:45 am, the stock was quoting at Rs 443, up 1.36 percent from the previous close.

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The financials

For the March quarter, the company reported consolidated net sales at Rs 345.79 crore, up 125 percent year-on-year. Quarterly net profit came in Rs Rs 39.17 crore, up 442 percent from Rs 11.45 crore in March 2022.

Operating profit or EBITDA came in at Rs 160.27 crore for Q4 FY23, up 334 percent from Rs 36.93 crore in Q4 FY22. Earnings per share increased to Rs 1.91 in March 2023 from Rs 0.56 in March 2022.

Domestic brokerage Prabhudas Lilladher believes Chalet Hotels will benefit from upcoming asset sweating, including the opening of 88 rooms at Novotel Pune in May, 168 rooms in Hyderabad from June, and the imminent rental income from around 1 million square feet of leasable area in Bangalore.

With the rate reset and operationalisation of hotel and commercial assets, Prabhudas Lilladher projects a revenue and profit after tax CAGR of 23 percent and 54 percent respectively from FY23 to FY25E for Chalet Hotels. It has a Buy rating on the stock with target price of Rs 504.

The Chalet Hotels Ltd stock has given a return of 22.72 percent over the past six months. In comparison, the Nifty50 has lost 0.47 percent during the same period.

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