Nomura has maintained its 'Neutral' rating on Chalet Hotels with a target price of Rs 910 following the company's September-quarter results, which showed steady revenue and EBITDA growth. The brokerage noted that hotel performance was supported by higher average daily rates (ADRs), while occupancy declined, particularly in Mumbai.
Revenue, excluding the residential segment but including other income, increased 10.8% year-on-year and was 2% above Nomura's estimate. EBITDA on the same basis grew 12.2% year-on-year, but was 3% below consensus due to weaker-than-expected margins in the commercial segment.
Hotel business sees higher rates, weaker Mumbai occupancy
Consolidated ADRs increased around 11.3% year-on-year, while occupancy declined 2.5%, resulting in revenue per available room (RevPAR) growth of around 7%.
Occupancy at hotels in the Mumbai micro market declined 6.7%. Nomura attributed this to ongoing peripheral construction and the impact of the Iran war on foreign tourist arrivals.