- 11 Apr 2025
- ICICIdirect Research
INDIA OFFICE RENTALS ROSE BETWEEN 3.8% AND 8.2% YOY CONTINUING UPWARD MOMENTUM.
CHALET - 801 Change: -13.30 (-1.63 %)News: According to media reports, India Office rentals rose between 3.8% and 8.2% YoY continuing upward momentum. In 2024 leasing activity touched 70.7 mn sq feet in 2024 marking 16% YoY growth. The rental trends across the globe remained under pressure but Indian cities have continued their momentum. The strong demand in India is contributed by IT and Global Capability centres (GCCs). The expectation faster economic growth in India is driving the growth of GCCs setup in India driving office rentals upwards.
View: The trend is positive for Chalet hotels who also have annuity business which contributes to 8% of its consolidated revenues as of FY24. We expect Chalet’s annuity business revenues to grow at 40% CAGR between FY24 to FY27 while the share of annuity business to increase from 8% to 13% by FY27. We expect Chalet’s consolidated revenues to grow at 22% CAGR between FY24 to FY27. The rising trend will help in synergy between its annuity business and hotel business which derives its occupancy from business travel which is instrumental in its RevPar growth.
Impact: Positive