The Leela Delivers Robust Q1 FY27 Performance with 28% Revenue Growth and 41% EBITDA Growth
The Leela continues to outperform the luxury hospitality sector through brand strength, pricing power and disciplined expansion.
By SOH Edit Team
The Leela Palaces Hotels & Resorts Limited delivered another quarter of strong performance, driven by robust demand, premium brand positioning and operational excellence.
The Company continued to strengthen its position as India’s leading luxury hospitality platform, supported by resilient domestic luxury travel demand, strong pricing power and one of the industry’s most compelling growth pipelines.
Anuraag Bhatnagar, Whole-time Director and Chief Executive Officer, said: “Q1 FY27 performance reflects the enduring strength of The Leela brand and the significant opportunity in India’s underserved luxury hospitality market. Our 28% operating revenue growth and 41% EBITDA growth demonstrate the scalability and operating leverage of our business model. Despite temporary international travel headwinds, RevPAR grew 17%, supported by industry-leading ADR performance and strong domestic leisure and MICE demand.”
Global Brand Recognition and Leadership
The Leela further strengthened its global standing by being ranked #2 among the World’s Best Hotel Brands. This marks the fifth time since 2020 that The Leela has been ranked among the world’s top three hotel brands, reaffirming its position as one of the most admired luxury hospitality brands globally.
The Company also maintained its leadership in guest satisfaction, achieving a Net Promoter Score (NPS) of 86 in Q1 FY27, significantly ahead of the APAC luxury hospitality benchmark of 74.
Strategic Expansion
The Company continues to execute a disciplined expansion strategy focused on India’s highest-value luxury destinations while maintaining a balanced portfolio of owned and managed assets.
Key developments during the quarter include:
- Expansion of ARQ by The Leela with the launch of its second club in New Delhi.
- Launch and rebranding of The Leela Coorg Forest Sanctuary, strengthening the Company’s experiential luxury offering.
- Signing of a concession agreement for The Leela Tadoba, a 30-key wildlife resort in Tadoba Tiger Reserve, Maharashtra.
Spread across 62 acres, The Leela Tadoba will involve an estimated investment of approximately ₹1,200 million and is targeted for completion by CY30. The project expands The Leela’s presence in India’s premium wildlife tourism circuit, alongside existing destinations such as Bandhavgarh and Ranthambore.
Today, The Leela operates one of India’s largest luxury hospitality platforms with 25 properties, 15 operational hotels with 4,162 keys and 10 hotels in pipeline with 1,095 keys.
Balance Sheet Supports Future Growth
The Company continues to maintain financial flexibility to support its expansion roadmap.
As of 30 June 2026:
- Net Debt: ₹13,319 million
- Net Debt / EBITDA: 1.6x
The Company remains focused on optimising its capital structure, reducing financing costs and maintaining adequate liquidity to execute strategic growth initiatives.
The Leela continues to advance its commitment towards achieving Net Zero by 2050, with ongoing initiatives focused on renewable energy adoption and environmental stewardship.
Key sustainability milestones include:
- All Palace hotels and The Leela Coorg Forest Sanctuary achieving Green Building Platinum Certification.
- The Leela’s portfolio becoming the largest in Southeast Asia to receive an EDGE Advanced Rating.
- Continued progress towards eliminating single-use plastics across the portfolio by 2030.
With a globally recognised luxury brand, strong operating momentum, disciplined expansion strategy and a robust development pipeline, The Leela remains well positioned to capture the long-term growth opportunity in India’s rapidly expanding luxury hospitality market.
Q1 FY27 Performance Highlights
- Operating Revenue: ₹3,520 million, up 28% YoY
- Operating EBITDA: ₹1,434 million, up 41% YoY
- Profit After Tax: ₹488 million, up 460% YoY
- RevPAR: ₹13,982, up 17% YoY
- ADR: ₹20,722, up 10% YoY
- Occupancy: 67.5%, up 4 percentage points YoY
- Operating EBITDA Margin: 41%, highest-ever Q1 margin for the Company
