1. At a Glance
Chalet Hotels Ltd is the hospitality arm of K Raheja Corp that turned premium hotel keys into ₹20,000 Cr market cap. With Marriott, Westin, and Sheraton in its pocket, it’s more “real estate in disguise” than just towel-folding tourism.
But with a P/E of 144 and a RoE below 6%, are we booking a luxury stay or a costly trap?
2. Introduction with Hook
If your room service bill had a P/E of 144, you’d raise a stink. Chalet Hotels is living that life — a high-growth, asset-heavy beast in India’s most inflation-resistant real estate class: luxury hotels.
- Keys Operated: 3,314 (mostly Marriott & Westin)
- FY25 Revenue: ₹1,718 Cr
- FY25 Net Profit: ₹142 Cr (down 49% YoY)
- Market Cap: ₹20,368 Cr
Smells like growth… with a whiff of overvaluation?
3. Business Model (WTF Do They Even Do?)
Core Segments:
- Hospitality: 7 luxury hotels (Marriott, Westin, Sheraton, etc.)
- Retail & Commercial Leasing in high-traffic zones
- Mixed-use Real Estate with in-house development capabilities
Chalet doesn’t just run hotels — it owns the land. Think “Asset-heavy Taj meets REIT ambition”.
4. Financials Overview
| Metric | FY24 | FY25 |
|---|---|---|
| Revenue (₹ Cr) | 1,417 | 1,718 |
| Operating Profit | 585 | 736 |
| OPM % | 41% | 43% |
| Net Profit | 278 | 142 |
| EPS (₹) | 13.54 | 6.53 |
| Dividend | Nil | Nil |
Pain Point: Net profit fell despite revenue growing — thanks to higher interest and depreciation costs.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹932 |
| EPS (TTM) | ₹6.53 |
| P/E | 144x |
| Book Value | ₹139 |
| P/B | 6.69x |
EduFair™ FV Range:
| Method | Valuation Range (₹) |
|---|---|
| P/E (30–40x reasonable) | 196 – 261 |
| EV/EBITDA (15x industry) | 560 – 660 |
| NAV-based Real Estate Adj. | 650 – 850 |
Fair Value Estimate: ₹600 – ₹800
At ₹932, you’re booking penthouse-level hopes in a market with AC problems.
6. What’s Cooking – News, Triggers, Drama
- Q4 PAT: ₹124 Cr (up QoQ, but FY25 PAT was halved YoY)
- New Room Inventory: Expansion at Pune, Bengaluru, and retail integration
- AGM: August 8, 2025 – includes ₹1,000 Cr debt raise vote
- Pledge alert: Promoters have 31.9% of shares encumbered
- Promoter stake decline: From 71.65% → 67.41% in 3 years
Trigger Watch:
- FY26 occupancy >75%
- Mall monetization
- Reduction in debt / pledge resolution
7. Balance Sheet
| Item | FY24 | FY25 |
|---|---|---|
| Equity Capital | ₹205 Cr | ₹218 Cr |
| Reserves | ₹1,646 Cr | ₹2,828 Cr |
| Borrowings | ₹3,005 Cr | ₹2,604 Cr |
| Total Assets | ₹5,778 Cr | ₹7,077 Cr |
Observations:
- Healthy reserve growth
- Debt marginally down, but still high
- Asset base expanding (fixed assets = ₹5,210 Cr)
8. Cash Flow – Sab Number Game Hai
| Flow Type | FY24 | FY25 |
|---|---|---|
| Operating Cash Flow | ₹689 Cr | ₹950 Cr |
| Investing Flow | ₹-620 Cr | ₹-1,355 Cr |
| Financing Flow | ₹-108 Cr | ₹496 Cr |
| Net Cash Flow | ₹-38 Cr | ₹91 Cr |
Verdict:
Cash flow from ops is strong. Investing into real assets — no red flags. But financing rise in FY25 = potential new borrowing.
9. Ratios – Sexy or Stressy?
| Ratio | FY24 | FY25 |
|---|---|---|
| ROCE (%) | 10% | 11.1% |
| ROE (%) | 10.3% | 5.77% |
| OPM (%) | 41% | 43% |
| D/E Ratio | ~1.2x | ~1.0x |
| Working Cap Days | -9 | -61 |
Verdict: Operating margins: A++. Return ratios: Uh-oh. D/E: Manageable. Working capital: aggressive.
10. P&L Breakdown – Show Me the Money
| Quarter | Revenue (₹ Cr) | OPM % | Net Profit (₹ Cr) |
|---|---|---|---|
| Q1 FY25 | 361 | 39% | ₹61 Cr |
| Q2 FY25 | 377 | 40% | ₹-139 Cr (loss) |
| Q3 FY25 | 458 | 45% | ₹97 Cr |
| Q4 FY25 | 522 | 46% | ₹124 Cr |
Note: Q2 blip hurt annual numbers. H2 bounced back strong.
11. Peer Comparison
| Company | CMP (₹) | P/E | ROCE | OPM % | PAT (₹ Cr) |
|---|---|---|---|---|---|
| Indian Hotels | 772 | 64x | 17.2% | 32.8% | 1,716 |
| EIH (Oberoi) | 382 | 31x | 23.4% | 37.5% | 767 |
| Lemon Tree | 156 | 63x | 12.7% | 49.3% | 196 |
| Chalet Hotels | 932 | 144x | 11.1% | 43.0% | 142 |
Chalet leads in margin, lags in valuation sanity.
12. Miscellaneous – Shareholding, Promoters
| Shareholder Type | Mar 2025 |
|---|---|
| Promoters | 67.41% |
| FIIs | 5.23% |
| DIIs | 23.93% |
| Public | 3.41% |
Key Notes:
- Retail holding = tiny. Institutions own it.
- 32% promoter pledge → cause for caution
- No dividend since listing
13. EduInvesting Verdict™
Chalet Hotels is like a boutique suite — curated, luxurious, expensive, and not for everyone.
Positives:
- Margins at 40%+
- Strategic Marriott alliance
- Expansion into commercial spaces = REIT angle
Concerns:
- P/E of 144 = fully booked valuation
- Pledged promoter holding
- Low ROE and no dividends
Think of Chalet as a luxury real estate company cosplaying as a hotel chain. If you believe India’s luxury stay boom is just starting — check in. But at ₹932, it better come with free room upgrades.
Metadata
– Written by EduInvesting Team | 21 July 2025
– Tags: Chalet Hotels, Luxury Hotels, Hospitality Stocks, Marriott India, FY25 Results
