Chalet Hotels hits new high

The market has given a big thumbs up to the Q4FY23 earnings of Chalet Hotels, what with the company posting its highest ever EBITDA margin, driven mainly by high revenue growth and efficient management of costs. These numbers were announced 10-days ago but looks like value buying has come in now.

On a 2.3x (YoY) jump in consolidated revenue at Rs.346 crore, the company’s EBITDA came in at Rs.160 crore, up 4.3x. Margins soared by 22 bp to 46.4%.

PAT for the quarter was at Rs.39 crore v/s loss of Rs.11 crore. Sequentially though, net profit is down from Rs.102 crore.

The performance was largely led by corporate travel, MICE, weddings and other social events. Q4 recorded new highs in average room rates at Rs.11,304, which is up by 11% (QoQ).

Portfolio average room rates crossed Rs.12,000 levels in the month of February. Occupancy improved 9% points QoQ to 74%, leading to the highest ever quarterly RevPAR of Rs.8,363. Hospitality segment revenue grew by 17% sequentially to INR3.1 billion. Room revenue grew by 23% over the previous quarter, while costs remain well under control, resulting in high flow-through.

The market is gung-ho about its new projects on the anvil – the first asset in North India with the proposed new hotel at the Delhi Airport. The company also marked its debut in leisure with the acquisition of The Dukes Retreat, at Lonavala. It is also unlocking value from its new projects in hospitality, residential and office real estate at Hyderabad, Bengaluru and Mumbai.

The appointment of a new senior VP, Vishal Sharma who comes with 30 years of experience has also buoyed the moods.

The stock is among the top five gainers on the BSE since the opening bell today. From its close of Rs.419.45 yesterday, the stock surged on to hit a new 52-week high today at Rs.447.65 and is currently trading at Rs.445 levels.