Hospitality and resorts chain operator Chalet Hotels Ltd secured a stay order from the High Court of Karnataka on Tuesday (February 17) regarding a property tax dispute. According to reports from CNBC TV18, the company obtained the stay order in connection with a notice issued by the Greater Bengaluru Authority. The notice, described as a 'Proclamation and Written Notice of Sale of Immovable Property', was issued for alleged non-payment of property tax dues.
The property tax dispute centers around ₹39.56 crore in alleged dues, including interest, penalty and cess. As reported by CNBC TV18, the dues pertain to the company's property located in Whitefield, Bengaluru, Karnataka. Following the issuance of the notice, Chalet Hotels filed a writ petition before the High Court of Karnataka, which has now granted a stay order on the matter until the next date of hearing.
Despite the legal proceedings, Chalet Hotels shares demonstrated positive market sentiment. According to CNBC TV18, shares of Chalet Hotels Ltd ended at ₹870.55, up by ₹7.55, or 0.87%, on the BSE on Tuesday. The stock movement suggests investor confidence in the company's ability to manage the legal dispute while maintaining its operational focus.
Looking ahead, Chalet Hotels management remains optimistic about the hospitality sector's prospects. As reported by CNBC TV18, Shwetank Singh, MD & CEO of Chalet Hotels, highlighted that demand picked up meaningfully in February and has stayed steady into March, keeping the company confident about a solid close to the financial year. Singh expects the next two to three years to remain favourable for the hospitality industry, with revenue per available room growth likely to stay in double digits.
