Chalet Hotels’ stock had a silent year despite impressive business growth

Subscribe to enjoy similar stories. Chalet Hotels Ltd stock is down around 3% over the past year, despite clocking 121% year-on-year revenue growth for the first half of FY26. The stock’s muted show could be because Chalet was trading at premium valuations a year ago, after rallying prior to that when the market was pricing in the upbeat hospitality cycle.

Nonetheless, the most exciting part of Chalet’s story isn’t growth, but the launch of Athiva Hotels and Resorts, a premium lifestyle brand that can transform the company from being a franchise-heavy hotel owner to a brand-led hospitality platform. At the recently held analysts' meeting, Chalet revealed details on its strategy, especially Athiva’s launch. For a long time now, Chalet’s portfolio has been dominated by global names like Marriott, Westin and Accor.

Athiva’s launch helps Chalet potentially improve its Ebitda margin as the latter will no longer have to pay brand fees, loyalty charges and marketing contributions. In the first phase, Athiva starts with more than 900 keys across six properties, including Khandala, Navi Mumbai, Aksa Beach and two in Goa. Within three years, Athiva plans to expand to around 1,800 keys, and a significant portion of the development cost has already been spent.

Eventually, Athiva will likely shift Chalet’s business mix substantially toward high-margin leisure assets. Once keys in development go live, Athiva could represent 20-25% of Chalet’s key base (currently 3,389), versus almost nil last year. If the early success at Khandala repeats, Athiva can lift Chalet’s overall RevPAR and Ebitda.