You are here: Home » Markets » News
Business Standard

Chalet Hotels jumps 5% on signing franchise agreement with Hyatt Group

Chalet Hotels had made its debut on the stock exchanges earlier this year. The initial public offering (IPO) of the company was subscribed 1.57 times

SI Reporter  |  New Delhi 

Hotels

Shares of climbed over 5 per cent on the BSE in the early trade on Tuesday after the company entered into a Franchise Agreement and other related agreements with Hyatt India Consultancy and its affiliates for the brand 'Hyatt Regency' in respect of its upcoming hotel at Airoli in Mumbai.

At 09:29 am, the stock was trading over 2 per cent higher at Rs 345.60 apiece. In comparison, the benchmark S&P BSE Sensex was trading around 8 points or 0.07 per cent higher at 41,673 levels.

On Monday, Chalet Hotels, in a regulatory filing, said it has signed a franchise agreement with Hyatt India Consultancy (Hyatt) and its affiliates for Hyatt Regency Navi Mumbai Airoli. The company’s upcoming nearly 260 keys hotel at Airoli, Navi Mumbai (Mumbai Metropolitan Region) will be the first Hyatt Regency branded hotel for Chalet. CLICK TO READ THE FILING

“We are pleased to announce this new collaboration with the Hyatt Group, one of the leading global Hospitality Brands. As part of our growth strategy of strengthening and expanding our portfolio, selection of the right brands continues to be a key focus for our company," said Sanjay Sethi, MD and CEO at

had made its debut on the stock exchanges earlier this year. The initial public offering (IPO) of the company was subscribed 1.57 times, due to the strong response from institutional investors. The company’s public issue for qualified institutional buyers (QIBs) was oversubscribed 4.66 times, while the non-institutional investor category was oversubscribed 1.1 times. The retail investor category was subscribed by merely 0.03 times. The company raised Rs 1,641 crore through its IPO.

On February 7, the stock settled lower after making a decent debut on the exchange. On the National Stock Exchange (NSE), Chalet Hotels settled at Rs 291.95 apiece, down 0.70 per cent against its listing price of Rs 294 per share. Since listing, shares of Chalet Hotels have rallied around 17 per cent (as on Monday) as compared to nearly 11 per cent rise in the Nifty50 index, ACE Equity data shows.

For the second quarter (July-September) of FY20, Chalet's revenue remained flat YoY at Rs 240 crore; however, after adjusting EBITDA for exchange loss of Rs 38.9 crore in 2QFY19, EBITDA grew 16 per cent YoY to Rs 81.6 crore, analysts at Motilal Oswal Financial Services (MOFSL) had written in a results review note dated November 26.

"Additionally, CHALET’s hospitality segment EBITDA after adjusting for exchange loss (of Rs 36.7 crore in 2QFY19) declined 3 per cent YoY to Rs 74.9 crore. Thus, commercial segment aided overall EBITDA (up 5.6x YoY) to touch Rs 22.2 crore as the ‘Sahar Office Tower’ got occupied," the note added.

First Published: Tue, December 24 2019. 09:45 IST
RECOMMENDED FOR YOU