Shares of Chalet Hotels (CHL) climbed over 4 percent in
early morning trade and then slipped down on the BSE. At 1:49 pm, shares of the company were trading at Rs 332, a 0.04 percent up from the previous close on the
BSE.The shares of
Chalet Hotels spiked in early morning trade as they announced on Friday that the company and its wholly owned subsidiary, Chalet Airport Hotel (as a developer), had executed a license agreement with Delhi International Airport regarding the construction, financing, management, operation, and management of a terminal hotel opposite Terminal 3 at the IGI Airport, New Delhi (Project).
This agreement bodes well for investors as it will allow the company to grow revenue at a time when the travel and tourism industries are recovering from the pandemic.
This will allow CHL, which operates hotels such as JW Marriott Mumbai Sahar and Four Points by Sheraton Navi Mumbai, to enter the north Indian market.
"We are excited about our entry into the NCR and north India as a part of our stated strategy. We look forward to working with DIAL and the best of the hotel brands to create a marquee asset in the airport district of New Delhi," said Sanjay Sethi, MD & CEO of Chalet Hotels Limited.
The company reported a net profit of Rs 286 crore in the April-June quarter, marking the best first quarterly result delivered by the company, supported by a strong recovery in business travel.
According to Chalet Hotels, only 56 percent of the foreign travel business was back on track in the quarter due to the global crisis and the Russia-Ukraine war.
The stock has given strong positive returns to investors. In six months, the stock has gained nearly 30 percent while in the year so far, it has gained over 52 percent. In one year, the stock has given 88 percent returns to investors.
