The Leela Reports 33% Revenue Growth in Q2 FY27; EBITDA Rises 36%
The Leela's Q2 FY27 results reflect sustained momentum in India's luxury hospitality market, with higher room rates, expanding management revenues and strong demand across business and leisure segments.
By SOH Edit Team
The Leela Palaces Hotels & Resorts Limited reported a 33% year-on-year increase in operating revenue to ₹411.9 crore for Q2 FY27, supported by higher room rates, resilient domestic demand and a recovery in international luxury travel.
Operating EBITDA grew 36% to ₹187.7 crore, while profit for the period increased 27% to ₹94.6 crore. The company's operating EBITDA margin expanded by 118 basis points to 46%, reflecting stronger operating leverage and cost efficiencies.
The performance underscores The Leela's ability to translate its premium brand positioning into revenue growth and profitability amid sustained demand for luxury hospitality experiences.
Record Room Rates Drive 30% RevPAR Growth
Average Daily Rate (ADR) rose 30% year-on-year to ₹25,046, driving a corresponding 30% increase in Revenue per Available Room (RevPAR) to ₹17,225.
The growth was supported by demand across retail, corporate and leisure segments, alongside stronger suite performance. Suite occupancy improved by more than 700 basis points, while domestic segment revenue recorded growth exceeding 30%.
High-profile events, including the BRICS Summit in Delhi, contributed to premium room demand, reinforcing the company's ability to capitalise on major international and corporate gatherings.
Growth extended across The Leela's operating segments, with room revenue increasing 39% year-on-year and food and beverage revenue rising 21%.
Hotel Management Agreement (HMA) fees recorded a 76% increase, reflecting the ramp-up of managed properties and the group's expanding brand footprint.
Non-room revenue accounted for more than 50% of total revenue during H1 FY27, highlighting the growing contribution of dining, events and other hospitality offerings to the company's revenue mix.
Anuraag Bhatnagar, Whole-time Director and Chief Executive Officer, The Leela Palaces Hotels & Resorts.
Luxury Demand Supports Expansion Outlook
The Leela also reported continued growth in direct bookings, with its brand website contributing 15.1% of room revenue during H1 FY27, representing a 2.8-fold increase compared with H1 FY25.
The shift towards direct distribution supports improved channel economics and reduces dependence on third-party booking platforms, while strengthening the company's relationship with its luxury customer base.
Anuraag Bhatnagar, Whole-time Director and Chief Executive Officer, attributed the quarter's results to the strength of The Leela brand and the structural growth opportunities in India's luxury hospitality market.
He highlighted the company's 33% operating revenue growth, 36% EBITDA increase and record ADR performance as indicators of sustained pricing power and demand for differentiated luxury experiences.
With a substantial luxury development pipeline and an expanding portfolio of managed properties, The Leela continues to pursue a growth strategy centred on premium positioning, operational efficiency and disciplined expansion.
The performance also reflects a broader trend in India's luxury hospitality sector, where premium room rates, high-value events and diversified revenue streams are becoming increasingly important drivers of growth.
