The Leela Palaces Hotels & Resorts has announced another quarter of industry-leading growth, reinforcing the strength of its premium positioning, pricing power and disciplined expansion strategy
Backed by resilient domestic 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.
Commenting on the results, Anuraag Bhatnagar, Whole-time Director and Chief Executive Officer, said, “Our first quarter performance outperforming industry reflects the enduring strength of The Leela brand and the structural opportunity we see in India’s underserved luxury hospitality market. We delivered a 28% operating revenue growth and a 41% rise in operating EBITDA, demonstrating the strong operating leverage of our business model.
Our robust RevPAR growth at 17% despite temporary international travel headwinds was the result of our continued ADR leadership and successfully capitalising on growing domestic leisure and MICE demand. As we celebrate 40 years of The Leela legacy of True Indian Luxury, we continue to invest in our brand, our people and our growth pipeline, positioning The Leela to lead the next decade of luxury travel in India.”
KEY HIGHLIGHTS: Q1 FY 27 (YOY)
Q1 FY27 Financial and Operations Performance
The Company delivered another quarter of industry-leading financial performance, translating premium brand strength into superior revenue growth, margin expansion and profitability.
- RevPAR increased 17% year-on-year to ₹13,982, led by a 10% rise in ADR to ₹20,722 and a 4% improvement in occupancy to 67.5% on an expanded portfolio including Coorg.
- Operating revenue grew 28% year-on-year to ₹3,520 million, while operating EBITDA increased 41% to ₹1,434 million and profit for the period rose 460% to ₹488 million.
- Operating EBITDA margin stood at 41%, the highest-ever Q1 EBITDA margin for the Company.
Industry-Leading Brand Recognition and NPS Leadership
- The Leela continued its Net Promoter Score (NPS) leadership with a score of 86 in Q1FY27, significantly ahead of the luxury segment benchmark of 74 in the APAC region, reaffirming its focus on service excellence and guest-centricity.
- The Leela is ranked #2 globally among the best Hotel Brands in the World by the Travel + Leisure World’s Best Awards 2026.
- In addition to this recognition, our flagship properties The Leela Palace Udaipur, New Delhi and Jaipur were also individually recognized among India’s top-ranked hotels at the Travel + Leisure World’s Best Awards 2026.
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 expanded ARQ by The Leela with its second club in New Delhi
- Launched and rebranded The Leela Coorg Forest Sanctuary on 8 July 2026, further strengthening its presence in experiential luxury
- During Q1FY27, the Company signed a concession agreement for a new 30-key wildlife resort in the Tadoba Tiger Reserve, Maharashtra. The Leela Tadoba will be a 30-key resort spread across 62 acres, with an estimated capex of ~₹1,200 million and completion targeted for CY30, extending the Company’s footprint into India’s premier wildlife tourism circuit alongside Bandhavgarh and Ranthambore.
- Today, The Leela is one of India’s largest luxury hospitality platforms with 25 properties comprising 15 operational hotels (4,162 keys) and a pipeline of 10 hotels (1,095 keys), supported by a balanced mix of owned and managed assets.
Growth – Ready Balance Sheet and Financial Flexibility
- Net debt stood at ₹13,319 million as of June 30, 2026, with Net debt to EBITDA at 1.6 times, 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, alongside a continued goal to eliminate single-use plastics across the portfolio by 2030
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