The Leela Palaces Hotels & Resorts has announced another quarter of industry-leading growth, reaffirming the strength of its premium positioning, pricing power and disciplined expansion strategy
Backed by resilient domestic and reviving international luxury demand, and one of the industry’s strongest luxury development pipelines, the Company continues to strengthen its position as India’s premier luxury hospitality platform and ranks #2 among the World’s Best Hotel Brands.
Commenting on the results, Anuraag Bhatnagar, Whole-time Director and Chief Executive Officer, said, “Our Q2 FY27 performance is a testament to the enduring strength of The Leela brand and the structural tailwinds in India’s luxury hospitality market. Our operating revenue grew 33% driving a 36% rise in operating EBITDA, reflecting our robust business fundamentals and operational excellence across verticals. Our 30% RevPAR growth in Q2 was led by a record 30% increase in ADR, demonstrating our sustained pricing power and the strength of demand for differentiated luxury experiences. Importantly, the demand was broad-based across retail, corporate and leisure segments, supported by strong demand for our suites and our ability to command a premium during marquee events.”
Key Highlights: Q2 FY27 (YOY)
Metrics presented above pertains to Owned Domestic Hotels, including Coorg
^Source: Revinate
Q2 FY27 Financial and Operational Performance
The Company delivered another quarter of industry-leading financial performance, translating premium brand strength into superior revenue growth, margin expansion and profitability.
- Operating revenue grew 33% YoY to ₹4,119 million, while operating EBITDA increased 36% to ₹1,877 million and profit for the period rose 27% to ₹946 million. Operating EBITDA margin stood at 46% in Q2 FY27, up 118 bps YoY.
- RevPAR increased 30% YoY to ₹17,225, led by a 30% rise in ADR to ₹25,046, on an expanded portfolio including Coorg.
- Record ADR growth was supported by robust demand across key customer segments and sustained traction in the luxury hospitality market. Domestic segment witnessed a 30%+ revenue growth, and continued premiumization was reflected in a more than 700 basis points improvement in suite occupancy. Demand was further bolstered by marquee events such as the BRICS Summit in Delhi. This reiterates The Leela’s track record of capturing high-value event demand, from the G20 in FY24 through India Energy Week, the AI Impact Summit, and upcoming events such as Aero India scheduled for Q4 FY27.
- Performance remained broad-based across business segments: Room Revenue grew 39%, F&B Revenue grew 21%, and HMA Fees were up 76% reflecting strong ramp-up of managed properties and a growing brand footprint. Non-room revenue exceeded 50% of total revenue in H1 FY27, reflecting continued diversification beyond rooms.
- Brand website contribution to room revenue reached 15.1% in H1 FY27, a 2.8x increase since H1 FY25, improving distribution economics and reducing reliance on third-party channels.
Global Brand Recognition and Leadership in Guest Advocacy
The Leela’s operating performance is underpinned by strong guest advocacy and growing global recognition.
- The Leela continued its Net Promoter Score (NPS) leadership with a score of 87 in H1FY27, significantly ahead of the luxury segment benchmark of 74 in the APAC region, reaffirming its focus on service excellence and guest-centricity.
- Three Palaces Awarded Michelin Keys for Second Consecutive Years. The Leela Palace New Delhi and The Leela Palace Jaipur were awarded two Michelin keys and The Leela Palace Chennai was awarded one Michelin key.
- ZLB23 was recognized among the 30 Best Bars in India.
Disciplined Capital – Efficient Expansion
The Company continues to execute its capital-efficient growth strategy by expanding into India’s highest-value luxury destinations while maintaining a balanced portfolio of owned and managed assets.
- The Company’s pipeline of 1,038 keys across 10 properties is progressing on schedule, spanning into Wildlife, Heritage, Hill Station, Desert and Spiritual.
- The Leela Jaisalmer and The Leela Luxury Residences, Mumbai which marks the brand’s foray into a new business vertical are both in active pre-opening stage with plans to commence operations in FY27.
Balance Sheet Built to Support Growth
- Net debt stood at ₹12,150 million as of September 30, 2026, with Net debt to LTM EBITDA improving to 1.4x, compared to 1.6x in March 2026 and 3.7x in March 2025, providing substantial headroom to fund future growth.
- 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.
- All Palace hotels and The Leela Coorg Forest Sanctuary are Green Building Platinum certified, and The Leela’s portfolio is the largest in South-East Asia to receive an EDGE (Excellence in Design for Greater Efficiencies) Advanced Rating.
- The company’s CSR initiative Bal Mitra Gram project, implemented with Satyarthi Movement for Global Compassion, was recognized as a Winner in the Women & Child Development category at the SICA 2026 Awards.
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