Chalet Hotels could see an uptick in its shares on March 1, following its announcement of acquiring its partners’ stake in Ayushi and Poonam Estates LLP, the owner of Courtyard by Marriott, Aravalli Resort, in the National Capital Region (NCR) for Rs 315 crore.
According to a regulatory filing, the company’s board of directors approved the acquisition during a meeting held on February 29. The transaction, to be executed for cash consideration, is valued at an enterprise value of Rs 315 crore, subject to adjustments for net current assets including cash. Completion of the deal is expected by March 10, 2024.
“At the time of admission into the partnership, Chalet Hotels Limited and Sonmil Industries Private Limited (wholly-owned subsidiary) have infused Rs 4.9 lakh and Rs 0.1 lakh as their respective capital contribution,” the company stated.
In the previous trading session, Chalet Hotels’ shares closed marginally lower on the NSE at Rs 814.00. However, year-to-date, the stock has surged by 17 percent, outperforming the benchmark Nifty 50 index.
In its financial report for the quarter ended December 2023, Chalet Hotels recorded a consolidated net profit of Rs 1,024 crore, a significant improvement from the Rs 144 crore loss reported in the same period last year. The company’s total income also witnessed a remarkable 94 percent increase to Rs 320 crore.
With optimistic projections for the next four to five years, driven by favorable supply-demand dynamics in the country, Chalet Hotels anticipates robust growth ahead.
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