Synopsis: Chalet Hotels launches premium lifestyle brand Athiva, expanding its portfolio across key leisure and urban locations. Brokerages highlight its own-brand strategy and cost-efficient land acquisition as key strengths.
This company is engaged in the business of hospitality (hotels), commercial and retail operations and real estate development is now in the spotlight after it launched a new luxury brand named ‘Athiva’.
With market capitalization of Rs. 19,881 cr, the shares of Chalet Hotels Ltd are closed at Rs. 908.90 per share, increasing more than 4% in today’s market session making a high of Rs. 918, from its previous close of Rs. 879.70 per share.
Over the past year, the stock has gained 2.20%, but it has declined 10.38% year-to-date and 5.24% in the past month, showing mixed performance with recent downward pressure.
Athiva Hotels & Resorts is a new premium lifestyle hospitality brand positioned around joy, wellness, and sustainability, launched under Chalet Hotels. The brand’s debut property is Athiva Resort & Spa in Khandala, featuring a landscaped lawn and contemporary low-rise building.
Athiva currently has a portfolio of 6 hotels with over 900 keys, including those in the pipeline. Upcoming properties include Athiva in Navi Mumbai; Athiva Resort & Spa at Aksa Beach, Mumbai; Athiva Resort & Spa in Varca and Bambolim in Goa and Athiva Resort & Convention Centre in Thiruvananthapuram, indicating a focus on key leisure and urban getaway locations.
Strong Financials
Chalet Hotels has shown consistent growth in total income and EBITDA over the past three fiscal years. Total income rose from Rs. 1,178 cr in FY23 to Rs. 1,754 cr in FY25, reflecting a CAGR of 22%. EBITDA also grew from Rs. 5,023 million in FY23 to Rs. 772 cr in FY25, registering a CAGR of 24%, highlighting strong operational performance.
The company’s EBITDA margin improved from 42.6% in FY23 to 44.0% in FY25, indicating better cost management and operational efficiency over the period. This upward trend in margins reflects Chalet Hotels’ ability to generate higher profits from its expanding revenue base.
The company reported a soft QoQ performance in Q2FY26. Revenue declined 18% QoQ to Rs. 735 cr from Rs. 895 cr in Q1FY26, while EBITDA fell 16% to Rs. 299 cr from Rs. 357 cr. Net profit slipped 24% to Rs. 155 Cr from Rs. 203 cr, and EPS contracted 24% to Rs. 7.08 from Rs. 9.30.
Healthy Balance Sheet and Debt Position
Chalet Hotels net debt decreased significantly from Rs. 2,508 cr in March 2024 to Rs. 1,990 cr in March 2025, with a slight increase to Rs. 2,092 cr by September 2025. The company maintains a comfortable net debt-to-EBITDA ratio, providing ample headroom to fund growth initiatives. The strong internal cash flow from hotels, along with revenue from lease rental discounting (LRD) and commercial real estate (CRE) assets, covers more than total debt servicing, supporting expansion plans.
With robust financials, efficient debt management, and growing profitability, Chalet Hotels is well-positioned to finance new projects, including its recently launched premium brand, Athiva, and planned hotel expansions across India.
Further, according to Jefferies, Chalet Hotels own-brand approach will strengthen its partnerships with major international chains. Antique Stock Broking, meanwhile, emphasized that the company’s core strength lies in securing prime land in high-potential micro-markets ahead of the market cycle, enabling it to build hotels at costs well below industry standards.
Written by Manideep Appana
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