Chalet commercial occupancy reaches 91%, EBITDA rises 23.5%

Chalet Hotels’ commercial real-estate portfolio reached 91% occupancy in September 2026, up from 77% in September 2025, while Q2 FY27 earnings before interest, tax, depreciation and amortisation (EBITDA) rose 23.5% year on year to Rs 75 crore. Leased area increased to 2.1 million square feet within unchanged leasable area of 2.4 million square feet.

How did Chalet commercial occupancy change?

Chalet’s consolidated commercial occupancy increased by 14 percentage points to 91% in September 2026 from 77% in September 2025. Leased area rose by 0.3 million square feet to 2.1 million square feet, while the portfolio’s leasable area remained at 2.4 million square feet in both periods.

Chalet defines leased space as including area committed, meaning the reported 91% occupancy includes leased and committed space. The increase occurred without a disclosed expansion in the 2.4 million-square-foot portfolio, so the September 2026 improvement reflected greater use of the existing leasable area.

Chalet’s commercial occupancy of 91% in September 2026 was above the combined hospitality portfolio occupancy of 64.2% reported for Q2 FY27. The measures cover different businesses and reporting dates, but the comparison shows the commercial assets had the higher reported utilisation rate in the disclosed periods.

Which Chalet commercial properties had the highest occupancy in September 2026?

Chalet reported the highest property-level occupancy at The Orb Retail, Sahar, at 95% in September 2026. The presentation shows 0.5 million square feet of leased area and 0.5 million square feet of leasable area for the asset, with the displayed area figures rounded to one decimal place.

CIGNUS Powai Tower I reported 90% occupancy, with 0.8 million square feet leased from 0.9 million square feet of leasable space. CIGNUS Whitefield Complex reported 89% occupancy, with 0.9 million square feet leased from 1.0 million square feet of leasable area.

The disclosed property occupancy range was 89% to 95% in September 2026. The Orb Retail, Sahar was 4 percentage points above Chalet’s 91% consolidated commercial occupancy, while CIGNUS Whitefield Complex was 2 percentage points below it.

How much did Chalet commercial revenue and EBITDA grow?

Chalet’s commercial real-estate revenue increased 22.0% year on year to Rs 90.1 crore in Q2 FY27, while EBITDA grew 23.5% to Rs 75 crore. In Q2 FY26, the segment reported Rs 73.8 crore of revenue and Rs 60.7 crore of EBITDA.

Chalet’s commercial EBITDA margin increased by 95 basis points to 83.2% in Q2 FY27 from 82.3% a year earlier. Quarterly revenue rose by Rs 16.3 crore and EBITDA rose by Rs 14.3 crore, based on the reported segment figures.

For H1 FY27, Chalet reported commercial revenue of Rs 176.5 crore, up 20.1% from Rs 147 crore in H1 FY26. Commercial EBITDA rose 22.2% to Rs 148.5 crore from Rs 121.5 crore, and the segment’s EBITDA margin increased by 142 basis points to 84.1% from 82.7%.

How did Chalet commercial real estate compare with other businesses?

Chalet’s commercial business reported an 83% EBITDA margin in Q2 FY27, compared with 41% for hospitality. Commercial revenue of Rs 90.1 crore was below hospitality revenue of Rs 411.5 crore, but the reported commercial margin was 42 percentage points higher.

Hospitality revenue rose 8.2% year on year to Rs 411.5 crore in Q2 FY27, while its EBITDA increased 11.2% to Rs 169.1 crore. Commercial real estate recorded faster reported growth, with revenue up 22.0% and EBITDA up 23.5%, alongside the rise in commercial occupancy to 91% in September 2026.

At the consolidated level, Chalet reported Q2 FY27 revenue of Rs 511.4 crore and EBITDA of Rs 227 crore, producing a 44% EBITDA margin. Chalet said year-on-year consolidated financials were not comparable because FY26 included income from the one-off Koramangala residential project.

Excluding the residential project, Chalet reported Q2 FY27 revenue growth of 10.7% and EBITDA growth of 13.5%. The residential project generated Rs 50 lakh of revenue and recorded an EBITDA loss of Rs 50 lakh in Q2 FY27, compared with Rs 90.1 crore of commercial revenue and Rs 75 crore of commercial EBITDA.

What commercial capacity is Chalet developing at Vivarea?

Chalet disclosed about 160,000 square feet, or 0.16 million square feet, of commercial leasable area under development at Vivarea. The presentation lists this commercial component on an FY28 timeline and states that the area is to be leased.

Vivarea also includes a 0.55 million-square-foot Phase I residential development where 153 apartments had been handed over, and a 0.31 million-square-foot Phase II containing 168 apartments awaiting handover. Chalet’s timeline identifies the Phase II residential handover for FY27 and the commercial component for FY28.

The future Vivarea commercial area is separate from the 2.4 million square feet of leasable area used in the September 2026 commercial occupancy comparison. Chalet did not disclose future occupancy, rental income or EBITDA for the 0.16 million-square-foot development.

Conclusion

Chalet’s commercial portfolio had more leased or committed space in September 2026, with occupancy rising from 77% to 91% while total leasable area remained at 2.4 million square feet. The segment’s Q2 FY27 revenue increased 22.0% to Rs 90.1 crore and EBITDA increased 23.5% to Rs 75 crore, while its 83.2% margin was above the hospitality segment’s reported 41% margin.

The next disclosed milestones are the handover of 168 Vivarea Phase II residential units in FY27 and the FY28 timeline for 0.16 million square feet of commercial space to be leased. Leasing progress at Vivarea and whether the existing portfolio maintains occupancy near September 2026’s 91% level are the next disclosed matters to watch.