Chalet Hotels: Prabhudas Lilladher Recommends 'BUY' with Target Price of Rs 1089

• Prabhudas Lilladher maintains a 'BUY' rating for Chalet Hotels with a target price of Rs 1,089.
• Chalet Hotels' operating performance, excluding residential business, exceeded estimates with a 45.9% EBITDA margin in 3QFY26.
• Growth is supported by new keys at Bangalore (129) and Khandala (147), with Hyatt, Airoli also receiving environmental clearance for future expansion.
• The annuity business is set to add 0.9mn sq ft by 4QFY27E, and a potential Udaipur acquisition could add ~150 keys.
• Analysts project sales/EBITDA CAGR of 18%/22% over FY25-FY28E, driven by a strong project pipeline.