The company posted operating EBITDA of Rs 143.4 crore, up 41 percent year-on-year, while profit for the period surged 460 percent to Rs 48.8 crore. Operating EBITDA margin stood at 41 percent, marking the highest first-quarter EBITDA margin in the company’s history.
Revenue per Available Room (RevPAR) grew 17 percent year-on-year to Rs 13,982, supported by a 10 percent increase in Average Daily Rate (ADR) to Rs 20,722 and a four percent rise in occupancy to 67.5 percent. The performance was achieved despite temporary international travel headwinds and reflects the continued strength of domestic luxury travel demand.
“Our first quarter performance outperforming industry reflects the enduring strength of The Leela brand and the structural opportunity we see in India’s underserved luxury hospitality market,” said Anuraag Bhatnagar, Whole-Time Director and Chief Executive Officer of The Leela. “We delivered a 28 percent operating revenue growth and a 41 percent rise in operating EBITDA, demonstrating the strong operating leverage of our business model.”
Bhatnagar noted that the company’s robust RevPAR growth was driven by its ADR leadership and ability to capitalise on increasing domestic leisure and MICE demand. “As we celebrate 40 years of The Leela legacy of True Indian Luxury, we continue to invest in our brand, our people and our growth pipeline, positioning The Leela to lead the next decade of luxury travel in India,” he added.
Brand Recognition
The quarter also saw the company strengthen its global brand positioning. The Leela was ranked second globally among the Best Hotel Brands in the World in the 2026 Travel + Leisure World’s Best Awards. The recognition marks the fifth time since 2020 that the brand has been placed among the world’s top three hotel brands.
The company also maintained its industry-leading guest satisfaction performance, recording a Net Promoter Score (NPS) of 86 during Q1 FY27, significantly ahead of the APAC luxury segment benchmark of 74.
Expansion Momentum
The Leela continued to advance its capital-efficient growth strategy through a mix of owned and managed assets across high-value luxury destinations.
During the quarter, the company expanded its exclusive members’ club concept, ARQ by The Leela, with the opening of its second club in New Delhi. It also strengthened its experiential luxury portfolio with the launch and rebranding of The Leela Coorg Forest Sanctuary on July 8, 2026.
Further expanding its presence in India’s wildlife tourism segment, the company signed a concession agreement for a new 30-key luxury resort in Maharashtra’s Tadoba Tiger Reserve. The upcoming property, The Leela Tadoba, will be developed across 62 acres with an estimated investment of around Rs 120 crore and is expected to be completed by calendar year 2030.
The project will extend the brand’s presence in India’s premium wildlife tourism circuit, complementing its existing footprint in destinations such as Bandhavgarh and Ranthambore.
Strong Balance Sheet
The company reported net debt of Rs 1,331.9 crore as of June 30, 2026, with a net debt-to-EBITDA ratio of 1.6 times. Management said the balance sheet provides significant flexibility to support future growth initiatives while optimising financing costs and maintaining adequate liquidity.
Sustainability Focus
Alongside financial and operational growth, The Leela continued to advance its sustainability agenda. The company reiterated its commitment to achieving net-zero emissions by 2050 and highlighted progress in renewable energy adoption and environmental stewardship.
All Palace hotels within the portfolio, along with The Leela Coorg Forest Sanctuary, have achieved Green Building Platinum certification. The company also stated that its portfolio remains the largest in Southeast Asia to receive the EDGE Advanced Rating and reaffirmed its target of eliminating single-use plastics across all properties by 2030.
The strong first-quarter performance underscores the growing depth of India’s luxury hospitality market, with premium operators increasingly benefiting from sustained domestic demand, higher spending by affluent travellers and expanding opportunities across leisure, MICE and experiential tourism segments. As The Leela continues to build its luxury pipeline and strengthen its brand equity, the company appears well positioned to capitalise on the next phase of growth in India’s high-end hospitality sector.
