Leela Palaces, Hotels & Resorts is confident of exceeding its ₹100 crore quarterly profit target in the financial year ending March 2026, driven by strong growth in both occupancy and room rates.
The company has reported four consecutive profitable quarters and expects the momentum to continue into the second half of the year, which typically contributes 60-65% of annual earnings.
Growth Plans and Strategy:
Leela Hotels aims to achieve an EBITDA of ₹2,000 crore by FY30, leveraging four key levers: same-store performance, new properties, brand extensions, and international expansion. For FY26, EBITDA growth is projected to be in the mid to high teens.
Whole-time Director and CEO Anuraag Bhatnagar highlighted plans to expand the portfolio from 13 to 22 properties, increasing key count from around 3,500 to over 5,000. The company is also introducing new verticals such as members-only clubs and luxury residences to strengthen its presence in the premium hospitality segment.
Bhatnagar emphasized the beachfront property investment at Jumeirah, covering 23 acres with over 500 keys, as a key opportunity. “With 25% of the capital we are deploying, we are getting 25% equity,” he said. The project is expected to generate long-term cash flows through branded residence sales and management fees.
Financial Overview:
Leela Palaces has a gross debt of about ₹1,400 crore and net debt of around ₹400 crore, with a net debt-to-EBITDA ratio of 0.5x. Interest costs have eased from 9.1% to 8.4%, and the average loan tenure has increased to about 15 years.
In Q2 FY26, the company reported a 13% growth in revenue per available room (RevPAR) and an EBITDA margin of 48.2%. For the first half of the year, EBITDA margin reached 45.5%, up 555 basis points year-on-year, with average daily rates (ADR) growing 10%.
Leela Palaces continues to build on its strong performance, positioning itself for sustained growth in the luxury hospitality segment.
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