Chalet Hotels shares surged 4% following Axis Capital’s positive outlook on the Indian hotel industry. The firm initiated a “Buy” rating for Chalet Hotels with a target price of ₹1191.
Axis Capital highlights a prolonged upcycle in the Indian hotel sector, driven by strong demand and favorable supply dynamics. With supply growth projected at 9% CAGR from FY24-FY27E and demand increasing at 12%, hotel operators are well-positioned to benefit.
Key growth drivers include rising business and domestic travel, increased wedding and MICE event spending, and the return of foreign visitors. The industry’s re-rating, led by Indian Hotels Company Limited (IHCL), offers attractive investment opportunities in listed hotel stocks.
Chalet Hotels’ stock opened at ₹927.10, reaching a high of ₹969.40 and a low of ₹927.10 during the session. With a 52-week high of ₹972.00 and a low of ₹587.15, the stock demonstrates significant volatility.
As of 10:30 am, Chalet Hotels shares were trading 4.34% higher at Rs 967.35 on the NSE.
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