Chalet Hotels share price surges over 4% in overall weak market; here's why

Chalet Hotels share price today: Chalet Hotels shares were buzzing in trade in an overall weak market on Wednesday, December 3, 2025, with the scrip rising up to 4.45 per cent to hit an intraday high of ₹918 per share.

 

Around 10:50 AM, Chalet Hotels share price was trading 3.07 per cent higher at ₹906.75 per share. In comparison, BSE Sensex was trading 0.43 per cent lower at 84,773.55 levels.

 

What triggered the rally in Chalet Hotels share price today?

 

Chalet Hotels’ share price rallied today after the company unveiled its new premium hospitality brand, Athiva Hotels & Resorts. 

 

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The portfolio will comprise six hotels with over 900 keys, including upcoming properties such as Athiva in Navi Mumbai, Athiva Resort & Spa at Aksa Beach in Mumbai, Athiva Resort & Spa in Varca and Bambolim in Goa, and the Athiva Resort & Convention Centre in Thiruvananthapuram. 

 

The launch signals an aggressive expansion into the upscale resort and convention segment, boosting investor sentiment.

 

Chalet Hotels Q2 results

 

Chalet Hotels reported a strong set of numbers for Q2FY26, with total revenue rising 94 per cent year-on-year (Y-o-Y) to ₹740 crore and Ebitda nearly doubling to ₹310 crore. 

 

The core hospitality business delivered solid growth, with revenue at ₹460 crore (up 20 per cent Y-o-Y), Ebitda improving 25 per cent Y-o-Y to ₹200 crore, and margins expanding 1.4 percentage points to 43.4 per cent. 

 

Chalet declared its first interim dividend of ₹1 per share, underscoring its focus on shareholder returns. 

 

Inventory grew 10 per cent YoY on the back of acquisitions and new additions, while the company achieved a milestone by becoming the first hospitality brand to meet Climate Group’s EV100 target.

 

Additionally, 55 flats were handed over to owners under the Koramangala, Bengaluru residential project during the quarter.

 

Sanjay Sethi, managing director (MD) and chief executive officer (CEO) of Chalet Hotels said “Chalet delivered a strong and steady performance this quarter, reaffirming the resilience of our diversified portfolio and the power of our operational discipline. Even amid volatile external conditions, from unpredictable weather to geopolitical shifts, our teams executed with clarity, consistency, and purpose.” 

Chalet Hotels: Buy, sell or hold?

 

Axis Securities, in a note dated November 6, 2025, reiterated its ‘Buy’ rating on Chalet Hotels while raising the target price to ₹1,120 (from ₹1,030), supported by robust annuity growth, strong margin performance, and the company’s transition toward a brand-led hospitality platform with the launch of its in-house brand Athiva. Q2FY26 results were broadly in line with estimates across revenue, Ebitda, and PAT. The hospitality business delivered 13.4 per cent Y-o-Y growth, led by a 15.6 per cent Y-o-Y rise in ARR to ₹12,170, though occupancy dipped to 67% due to fresh supply additions, an impact management termed a temporary blip. 

 

Analysts further said that Chalet maintains a highly optimistic H2FY26 outlook driven by festive demand, holidays, and the MICE season, underpinned by the continued strength of its “double engine strategy” of hospitality and commercial real estate. With estimated upgrades across FY26-27 and valuation set at 20x EV/Ebitda on H1FY28E, Axis Securities remained positive on the stock.

 

Chalet Hotels Limited, part of the K Raheja Corp group, is among the leading owner, developer, operator, and asset manager of high-end hotels and luxury resorts across India. Its portfolio includes 11 operating hotels and resorts with 3,359 keys, managed under globally recognised brands such as JW Marriott, The Westin and Novotel, along with nearly 1,200 additional rooms under development. Chalet is also expanding its commercial real estate footprint from 2.4 million sq. ft. to 3.3 million sq. ft., further enhancing its integrated hospitality and real estate platform.