Leela Palaces, Hotels & Resorts delivers record FY26 results – industry – leading growth and margins and highest annual key expansion

Leela Palaces Hotels & Resorts Limited has announced its financial and operational results for the quarter and financial year ending March 31, 2026

FY26 marks a defining year of record performance, with the Company delivering its highest-ever revenue, profitability, and margins; significantly outpacing industry growth. Commenting on the results, Anuraag Bhatnagar, Whole-time Director and Chief Executive Officer, said, “FY26 has been a landmark year for The Leela Palaces, Hotels & Resorts. We delivered a strong, broad-based performance led by double-digit RevPAR growth, driving a 19% EBITDA growth and our highest ever PAT of ₹4,030 million.”

He added, “Our RevPAR outperformance at 2.3 times of the luxury segment continues to deliver market share gains, underscoring our pricing power. As demand continues to significantly outpace supply in the luxury segment, we have strategically expanded our portfolio and pipeline across key destinations, including Mumbai BKC, Dubai, Jaisalmer, and Coorg. With a strong balance sheet and Net Debt to EBITDA at 1.6 times, we are well-positioned to scale and capitalise on the next phase of luxury demand growth.”

Quarterly and full year financial and operations performance

Q4 FY26: Sustained ADR expansion, faster F&B growth and resilient domestic demand, even amidst geopolitical headwinds, drove healthy operational performance

• Operating revenue grew 12% year-on-year to ₹4,844 million, while operating EBITDA increased 13% to ₹2,657 million and profit after tax (PAT) rose 46% to ₹1,717 million. 
• Operating EBITDA margin stood at approximately 55%, expanding by 57 basis points year-on-year.
• RevPAR for the five owned palaces increased 6% year-on-year to ₹23,028, supported by a 15% rise in ADR to ₹32,059, partly offset by moderation in occupancy due to geopolitical disruptions

FY26: Strong operating performance across the board, and a significantly strengthened balance sheet have driven a step-change in profitability.

• Operating revenue grew 15% year-on-year to ₹15,273 million, while operating EBITDA grew 19% to ₹7,429 million, with operating EBITDA margin improving to 49%.
• PAT rose significantly (up ~8.5x) to ₹4,030 million in FY26 from ₹477 million in FY25. 
• Same-store RevPAR for the five owned palaces grew 14% year-on-year to ₹17,460, with ADR up 13% to ₹25,375 and a 1 percentage improvement in occupancy to 69%.
• The Leela Palaces, Hotels & Resorts outperformed the India luxury segment, delivering ~2.3x RevPAR growth, with the RevPAR index strengthening to 150 in FY26 from 139 in FY25, reflecting continued market share gains.
• F&B revenue grew 15% year-on-year to ₹5,499 million, driven by 7 curated F&B launches and upgrades across key properties, with higher non-resident contribution in city hotels.

Industry-leading brand recognition and NPS leadership

• The Leela Palaces, Hotels & Resorts sustained its Net Promoter Score (NPS) leadership with a score of 86 in FY26, significantly ahead of the luxury segment benchmark of 74 in the APAC region, reaffirming its focus on service excellence and guest-centricity.
• The brand continued to receive global and domestic recognition, including “Best Hotel Group of the Year” for the sixth consecutive year, alongside multiple property-level awards across key hotels such as The Leela Palace Delhi, Udaipur, and Chennai.
• The Leela Palaces, Hotels & Resorts has been certified by Great Place To Work®, the global benchmark for workplace culture. This certification reinforces the brand’s commitment to an associate-centric culture built on trust, purpose and The Leela Dharma. 

Disciplines capital-efficient expansion

• FY26 marked The Leela Palaces, Hotels & Resorts’ fastest pace of expansion with four additions across Mumbai BKC, Palm Jumeirah (Dubai), Jaisalmer, and Coorg, driving 23% growth in keys.
• In Q4 FY’26, we acquired The Leela Coorg Forest Sanctuary, an all-villa ultra-luxury resort with 71 keys spread across 76 acres, with further development potential including 19 keys in the first phase of expansion. This acquisition further strengthens the Company’s presence in experiential luxury and wellness-led resorts.
• The Leela Palaces, Hotels & Resorts has a scaled footprint of over 5,200 luxury keys across business and leisure destinations, with 15 operational hotels (4,162 keys) and 9 hotels in the pipeline (1,065 keys), with a balanced mix of owned and managed assets.
• The Company’s growth strategy continues to be anchored in a combination of owned developments in high barrier-to-entry markets, capital-light management contracts and value-accretive asset upgrades, creating long-term value and attractive returns on invested capital.

Strengthened balance sheet and financial flexibility

• Net debt reduced from ₹25,677 million in FY25 to ₹12,707 million in FY26, with Net Debt to EBITDA improving from 3.7x to 1.6x as of March 31, 2026, providing substantial headroom to fund future growth while maintaining a conservative leverage profile.
• The Company remains focused on optimizing its capital structure and financing costs while preserving ample liquidity to support its expansion pipeline and strategic initiatives.

ESG and CSR

• The Company remains committed to its net zero ambition by 2050, backed by continued progress in renewable energy and environmental stewardship.
• 67% of the company’s power comes from renewable sources, while 100% of vendors are compliant with Code of Conduct and anti-bribery/anti-corruption policies.
• Women accounted for 26% of permanent workforce, supporting the company’s inclusive culture agenda.

• More than 30,000 community members were engaged through child welfare and educational activities.
• ESG initiatives include upcycling around 3 MT of floral waste, sourcing tea from a carbon-neutral organic estate, and procuring embroidered jute bags locally.
• The company supports skill development and livelihood creation for women artisans, marine biodiversity protection on the Chennai coastline, village transformation initiatives, and cultural preservation programmes such as Karnataka Mahila Yakshagana.

Long-term growth levers

The Company remains well-positioned for multi-year growth supported by structural tailwinds in luxury demand 

• Same-store growth led by ADR and occupancy headroom, expansion of F&B, wellness and experiential luxury offerings including an exclusive members’ only club, Arq By The Leela.
• Visible pipeline of 1,000+ keys by FY30 across owned developments and capital-light management contracts, widening the brand footprint into multiple geographies and segments.  

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