Sterling Holiday Resorts Crosses 4,000 Keys as Q2 Revenue Hits Record Rs 1,272 Million

Sterling Holiday Resorts Limited (SHRL) reported its 27th consecutive profitable quarter in Q2 FY27, recording revenue of Rs 1,272 million, an increase of 17 percent year-on-year. The company reported the growth despite the quarter traditionally being a relatively weak period for the leisure hospitality sector.

The company's Q2 EBITDA stood at Rs 289 million, while occupancy reached 60 percent. Average Room Rate (ARR) increased 12 percent to Rs 6,494, and Total Revenue Per Available Room (RevPAR) also grew 12 percent.

Expansion remained a key contributor to Sterling's growth during the quarter. The company opened seven resorts in Q2 FY27, marking its highest-ever quarterly addition, and increased its network to 83 resorts with more than 4,000 keys. It also signed six additional resorts during the period, adding to its development pipeline.

The managed-resort segment continued to contribute to the company's expansion strategy. Revenue from this business increased 67 percent year-on-year to Rs 379 million, accounting for 23 percent of enterprise revenue. Sterling currently operates 42 managed resorts, reflecting its focus on expanding through an asset-right business model rather than relying entirely on owned properties.

For the first half of FY27, Sterling reported revenue from operations of Rs 2,971 million, up 19 percent year-on-year. EBITDA increased 15 percent to Rs 910 million, while Profit Before Tax (PBT) rose 22 percent to Rs 623 million.

Operating performance during H1 was supported by improved occupancy and room pricing. Occupancy increased by 500 basis points to 68 percent, while ARR grew 11 percent to Rs 7,222. The company is also focusing on improving revenue generation across its properties beyond room bookings.

Sterling closed Q2 FY27 with cash reserves of Rs 3,805 million, an increase of 12 percent sequentially, while maintaining a zero-debt balance sheet. Operating free cash flow for H1 grew 16 percent to Rs 593 million. The available cash position provides financial flexibility for resort upgrades, technology investments and further property expansion.

Vikram Lalvani, Managing Director & CEO, SHRL, said, “Our 27th consecutive profitable quarter reflects the resilience of Sterling's business model and our ability to sustain growth through different demand cycles. Delivering record Q2 revenue in a seasonally weaker leisure quarter is significant alongside as our increasingly diversified operating model gains scale and momentum. Our record pace of openings, crossing 4,000 keys, and a strong, debt-free balance sheet give us the confidence to accelerate our growth while remaining disciplined about returns. We remain focused on building a larger, sustainably profitable and capital-efficient hospitality enterprise while consistently enhancing guest experience and creating long-term stakeholder value. With the seasonally stronger second half ahead, we remain optimistic about sustaining our growth momentum, improving revenue productivity across our portfolio and delivering greater value from our expanding hospitality network.”

The company also reported an improvement in its TripAdvisor rating to 4.63 from 4.60 a year earlier, with 31 resorts ranked No. 1 in their respective areas. Sterling received the "Fastest Growing Leisure Hotel Chain" recognition at the Today's Traveller Awards 2026 for the third consecutive time. Its Sterling ONE distribution platform also received the "Smart Tech Enabled Platform of the Year 2026 – B2B" award at the Indian Travel & Technology Summit & Awards 2026.

Sterling's Q2 performance highlights the growing contribution of managed properties to its business, alongside expansion in its resort network. With more than 4,000 keys, a zero-debt balance sheet and improving room revenue metrics, the company is positioning its next phase of growth around asset-light expansion, operating efficiency and revenue productivity.