Sterling Holiday Resorts Posts Record Q1 Performance, Accelerates Growth Strategy
Sterling Holiday Resorts posted record financial and operating results in Q1 FY27, driven by higher occupancy, robust room revenues and a disciplined expansion strategy.
By SOH Edit Team
Sterling Holiday Resorts Ltd (SHRL) has reported its strongest-ever quarterly performance for the first quarter of FY27, posting record revenue, EBITDA, profit before tax (PBT) and operating free cash flow as the company continues to strengthen its position in India's organised hospitality sector.
The company reported 21% year-on-year growth in revenue to ₹1.7 billion, while EBITDA rose 21% to over ₹620 million, maintaining a healthy 37% EBITDA margin. Profit before tax increased 30%, with PBT margins expanding by 200 basis points, while operating free cash flow also grew 30%, reflecting improved operating leverage, disciplined cost management and strong cash generation.
Sterling ended the quarter debt-free with cash reserves of more than ₹3.7 billion, providing financial flexibility to support future investments in expansion, technology and guest experience.
Growth Pipeline Remains Strong
Operational performance remained equally robust during the quarter. Occupancy rose by 700 basis points to 77%, despite an increase in room inventory, while the average room rate (ARR) reached a record ₹7,809. Total Revenue per Available Room (TRevPAR) increased 20%, supported by strong commercial execution and revenue management.
Room revenue grew 29%, while food and beverage revenue increased 15%, reflecting sustained demand across the company's portfolio.
Sterling currently operates 78 resorts with nearly 3,800 rooms across more than 65 destinations, making it one of India's fastest-growing listed hospitality companies.
The company has a development pipeline of more than 35 resorts and over 2,000 additional rooms, supported by its asset-right growth strategy that combines owned, leased and managed properties while maintaining capital discipline.
Vikram Lalvani, Managing Director & CEO, Sterling Holiday Resorts Ltd
Guest Experience Continues to Differentiate
Commenting on the results, Vikram Lalvani, Managing Director & CEO, Sterling Holiday Resorts Ltd, said the quarter marked a defining milestone in the company’s evolution. “Our best-ever quarterly performance reflects the transformation of Sterling into a scalable, profitable and resilient hospitality platform. With a strong balance sheet, a healthy development pipeline and continued investments in technology, artificial intelligence and leadership, we are well positioned for our next phase of growth. Our focus remains on delivering sustained value through consistent growth, stronger returns and enhanced guest experiences.”
Alongside its financial performance, Sterling continued to receive industry recognition for guest satisfaction. Sterling Kanha was awarded Tripadvisor's 'Best of the Best' distinction for the fourth consecutive year, placing it among the world's top one per cent of hotels and resorts. Additionally, 28 Sterling resorts received Tripadvisor Travellers' Choice Awards, with 12 properties earning the recognition for three consecutive years.
Key Highlights:
- Revenue at ₹1.7 Billion, PBT grows 30% YoY
- 37% EBITDA Margin, among the top hospitality brands in the country.
- Q1 FY27 marks its 26th consecutive profitable Quarter.
- Occupancy rises 700 BPS, ARR grows 10%, RevPAR grows 20%
