Nomura initiates India's Leela Palaces and Chalet Hotels with 'buy' and 'neutral'

Leela Palaces Hotels & Resorts

22/04/2026 07:09

** Nomura initiates coverage on India's Leela Palaces Hotels & Resorts LEEA.NS with "buy" (TP: 510 rupees) and Chalet Hotels CHAL.NS with "neutral" (TP:860 rupees)

** Brokerage says LEEA can drive high-single to low-double-digit revenue per available room growth, supported by strong super-luxury demand and limited competing supply

** Sees modest FY27 EBITDA growth, as Middle East tensions may weigh on occupancy in 1H; expects FY28-29 to be stronger as new assets come online

** Nomura says 30% of CHAL's portfolio impacted by construction/renovation; occupancy likely to normalise by FY27–28

** Expects ~15% revenue and EBITDA CAGR over FY26–29, driven by ~9% revenue per available room growth, assuming Middle East stabilisation

** LEEA shares down 0.3% to 433.55 rupees, CHAL up 1.38% to 814.25 rupees on the day

** YTD, LEEA up 0.3%, CHAL down 7.72%

 (Reporting by Devika Nair in Bengaluru)

 ((Devika.MadhusudhananNair@thomsonreuters.com;))