Leela Palaces Hotels & Resorts Limited reported strong financial growth for the quarter ending September 30, 2025 (Q2 FY26), with total revenue rising 11% year-on-year to INR 3,334 million and EBITDA increasing 17% to INR 1,607 million. Profit after tax (PAT) reached INR 747 million, marking the company’s fourth consecutive quarter of positive PAT. The EBITDA margin improved to 48.2%, reflecting operational efficiency and effective cost management.
CEO Anuraag Bhatnagar highlighted a 13% increase in RevPAR, driven by improved occupancy and average daily rate (ADR). The company’s owned hotels posted strong double-digit RevPAR growth across both city and resort segments. The Leela’s same-store portfolio delivered a 77% flow-through to EBITDA during the first half of FY26, outperforming the Indian luxury segment with nearly triple the market benchmark growth.
Entry into Dubai’s Palm Jumeirah
The company announced its first international venture through a strategic investment acquiring a 25% equity stake in a luxury beachfront resort on Dubai’s iconic Palm Jumeirah. The remaining 75% stake is held by Brookfield-managed private funds. This 23-acre beachfront property includes 546 keys: a 361-key hotel, 182 residences, and 3 villas. This strategic move extends The Leela’s hospitality brand to a global stage.
Domestic expansion and new initiatives
Domestically, The Leela continues to expand with nine new hotels in the pipeline, including projects in Agra, Ayodhya, Bandhavgarh, Mumbai, Ranthambore, Sikkim, and Srinagar. The company also introduced “ARQ by The Leela,” an invite-only membership club, and launched a luxury retail wing at The Leela Palace Bengaluru featuring marquee brands such as Sabyasachi and Zoya.
The company has maintained a strong balance sheet post-IPO, with a net debt to LTM EBITDA ratio of 0.5x, improved financing efficiency, and an upgraded AA (Stable) credit rating. The Leela expects to deliver mid-to-high teens EBITDA growth in FY26 supported by continued portfolio enhancements, strong same-store growth, and favorable macroeconomic conditions in India’s luxury hospitality sector.
This performance and strategic expansion signal The Leela’s emergence as a leading luxury hospitality brand with a growing international presence.
