Chalet Hotels, a leading player in the hospitality sector, has announced a significant move that is poised to enhance its portfolio and bolster its market position.

The company has revealed its intention to acquire a 100% stake in Ayushi & Poonam Estates LLP, the proud owner of the esteemed Courtyard by Marriott, Aravalli Resort located in the National Capital Region (NCR).

This strategic acquisition, valued at a substantial Rs 315 crore, underscores Chalet Hotels' commitment to expansion and its confidence in the prospects of the hospitality industry in India.

The decision to acquire the entirety of Ayushi & Poonam Estates LLP was reached and approved during a recent meeting of Chalet Hotels' board of directors held on February 29.

The acquisition, set to be finalized through a cash transaction, is slated to be completed by March 10, 2024.

This move not only signifies Chalet Hotels' proactive approach to seizing lucrative opportunities but also highlights its ability to swiftly execute strategic initiatives for long-term growth.

At the inception of the partnership, Chalet Hotels Limited and its wholly-owned subsidiary, Sonmil Industries Private Limited, have injected significant capital contributions totalling Rs 4.9 lakh and Rs 0.1 lakh, respectively.

This infusion of capital underscores the company's financial strength and its readiness to invest in promising ventures that align with its strategic objectives.

The market has responded positively to this development, with Chalet Hotels' shares witnessing a notable uptick of nearly 1 per cent on March 1.

This surge in share price reflects investor confidence in the company's growth trajectory and its ability to capitalize on emerging opportunities in the hospitality sector.

Notably, Chalet Hotels' stock has outperformed the benchmark Nifty 50 index, rallying by 17 per cent since the beginning of the year, compared to the modest 1 per cent increase in the Nifty 50 during the same period.

Looking ahead, Chalet Hotels is optimistic about its prospects for robust growth over the next four to five years.

The company anticipates leveraging the favourable supply-demand dynamics prevalent in the Indian hospitality market to drive performance and deliver value to its stakeholders.

This bullish outlook is supported by Chalet Hotels' impressive financial performance, as evidenced by its consolidated net profit of Rs 1,024 crore for the quarter ended December 2023, marking a significant turnaround from the loss of Rs 144 crore reported in the corresponding period last year.

Furthermore, the company's total income recorded a remarkable surge of 94 per cent to reach Rs 320 crore, underscoring its resilience and ability to capitalize on market opportunities.

In summary, Chalet Hotels' acquisition of Ayushi & Poonam Estates LLP represents a strategic milestone in its growth journey, reflecting its commitment to expanding its footprint and creating value for its stakeholders.

With a strong foundation and a clear strategic vision, Chalet Hotels is well-positioned to capitalize on the evolving dynamics of the hospitality sector and emerge as a key player in the industry.