Check-In: Chalet Hotels – Q4FY25 Earnings Review

Hospitality saw a premium touch this quarter as Chalet Hotels checked out of FY25 with strong occupancy and rising room rates. Backed by smart expansion and consistent growth, this hospitality player is booking future gains.

The Welcome Note – Rationale

“Q4FY25: Strong EBITDA growth, aided by better metrics on a larger asset base.”

FY25 EBITDA rose 40% YoY; a reflection of operating leverage at play.

121 new keys were added in Bengaluru, taking total portfolio to 3,314 keys.

Strong earnings and an expanding pipeline justify the ADD rating.

Room Service – Quarterly Review

The Suite Spot – Positives

• Revenue: ₹522 crore (+25% YoY, +14% QoQ)
• PAT: ₹124 crore (+50% YoY, 5.9% above estimates)
• ARR: ₹14,345/day (+21% YoY, +11% QoQ)

Room for Improvement – Challenges

• ARR in MMR declined by 100 bps YoY
• Net debt rose sequentially to ₹1,990 crore

Room for Growth, View to Upside

Chalet has checked into FY26 with momentum. With more keys, better ARR, and strong demand outlook, the stay here could be rewarding.

Disclaimers (The Fine Print)

This feature is based on a synopsis of a research report issued by Kotak Neo. For the full story (and disclaimers), make sure to check out the original sources:

• Full Research Report

• Kotak Neo Research Disclaimer

• Research Hub