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ICICI Securities initiates coverage on Chalet Hotels with 27% upside view
Chalet Hotels said ICICI expects the firm to grow hotel revenue at about a 15% CAGR through FY29 and projects a target price of ₹1,095 per share.
Chalet Hotels shares rose on Wednesday, September 23, extending recent gains after ICICI Securities initiated coverage on the Mumbai-based hotel chain with a target price implying nearly 27% upside.
According to the brokerage, Chalet Hotels has shifted from a pure asset owner into a hybrid model, including the launch of the Athiva premium lifestyle brand in FY26, and plans to increase its operational hotels’ portfolio by 1,655 keys to over 5,000 keys by March 2030.
ICICI Securities estimated Chalet’s hotel revenue could grow at about a 15% compound annual growth rate over FY26 to FY29, reaching INR 26.9 billion in FY29E, while hotel EBITDA could rise to INR 11.8 billion, also at roughly a 16% CAGR.
The brokerage maintained a Buy rating and set a target price of ₹1,095 per share based on 22x Mar 28E hotel EV/EBITDA, noting potential earnings support from brownfield and greenfield additions, while flagging risks including a slowdown in hotel demand or office leasing.