Chalet Hotels Ltd has received a property tax demand notice amounting to Rs 39.56 crore from the Greater Bengaluru Authority, according to a stock exchange disclosure.The hospitality company informed exchanges that the notice pertains to property tax dues assessed by the local authority in Bengaluru.
The demand is understood to be related to one of the company’s assets in the city. Chalet Hotels has not indicated any immediate financial impact but is expected to review the notice and evaluate its legal options. The development comes at a time when Chalet Hotels has been reporting steady operational performance. The company recently announced strong Q3 FY26 results, with revenue growth of 27% year-on-year, reflecting continued recovery and expansion in India’s hospitality sector. On the market front, Chalet Hotels’ stock has delivered notable long-term returns. Over the past year, the stock has gained over 25%, while five-year returns exceed 400%, reflecting strong investor confidence in the company’s portfolio and growth strategy. However, short-term movements have remained relatively stable, with marginal fluctuations in recent trading sessions. Property tax disputes are not uncommon in large commercial developments, particularly in rapidly expanding urban centres such as Bengaluru. Local authorities periodically reassess property valuations and usage classifications, which can result in revised tax demands for commercial establishments, including hotels and mixed-use developments.
Companies typically examine such notices for discrepancies in valuation methodology, classification, or retrospective application of rates. In many cases, firms may choose to file representations, seek reassessment, or pursue legal remedies if they believe the demand is excessive or inconsistent with regulations. Bengaluru remains a key hospitality and commercial market, supported by corporate travel, IT sector activity, and infrastructure expansion. For hotel operators, regulatory compliance and local taxation remain integral aspects of operations, especially in premium business districts. Investors will closely monitor any further clarification from Chalet Hotels regarding the basis of the tax demand and its potential financial implications. The company’s response and engagement with the authorities will determine whether the matter results in a provision, a legal challenge, or a revised assessment.
For now, Chalet Hotels continues to operate its portfolio across key Indian cities, with a focus on asset expansion, operational efficiency, and revenue growth in the hospitality segment.
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Chalet Hotels Faces Rs 39.56 Crore Property Tax Claim
