The Leela Palaces, Hotels & Resorts Reports 33% Revenue Growth in Q2

The Leela Palaces, Hotels & Resorts reported a 33% year-on-year increase in operating revenue to INR 4,119 million in Q2 FY26-27. Operating EBITDA grew 36% to INR 1,877 million, while profit after tax rose 27% to INR 946 million. The EBITDA margin expanded by 118 basis points to 46%, supported by higher room rates and strong demand across its luxury hotel portfolio.

Revenue per available room (RevPAR) increased 30% to INR 17,225, while the average daily rate (ADR) rose 30% to INR 25,046 across the company’s owned domestic hotels, including Coorg. Domestic revenue grew by more than 30%, while suite occupancy improved by over 700 basis points. 

Growth extended across the company’s business segments. Room revenue rose 39% year-on-year, food and beverage revenue increased 21%, and hotel management agreement (HMA) fees grew 76%, reflecting the expansion of its managed hotel portfolio.

Anuraag Bhatnagar, Whole-time Director and Chief Executive Officer of Leela Palaces, Hotels & Resorts, attributed the performance to demand from retail, corporate and leisure travellers, along with higher suite occupancy and the ability to secure premium rates during major events.

Non-room businesses contributed more than 50% of total revenue in the first half of FY27. Direct bookings through the company’s brand website accounted for 15.1% of room revenue during the period, 2.8 times the share recorded in the first half of FY25. The company reported a Net Promoter Score of 87 for H1 FY27, against the Asia-Pacific luxury segment benchmark of 74.  Its expansion pipeline includes 1,038 keys across 10 properties. The Leela Jaisalmer and The Leela Luxury Residences in Mumbai are in the pre-opening stage, with operations planned for FY27. The Mumbai development marks the brand’s entry into the luxury residences segment.

As of September 30, 2026, net debt stood at INR 12,150 million. The net debt-to-last-twelve-months EBITDA ratio improved to 1.4 times, compared with 1.6 times in March 2026 and 3.7 times in March 2025. The company reiterated its commitment to achieving net-zero emissions by 2050.