Leela Palaces Hotels & Resorts Limited reported a 28% increase in operating revenue to Rs 352 crore in the first quarter of fiscal year 2027 (Q1 FY27). Operating EBITDA rose 41% to Rs 143.4 crore, marking the highest Q1 EBITDA margin of 41% in the company’s history. Profit for the period surged 460% to Rs 48.8 crore. RevPAR climbed 17% year-on-year to Rs 13,982, supported by a 10% rise in average daily rate (ADR) to Rs 20,722 and a 4% jump in occupancy to 67.5%, which reflects an expanded portfolio including the newly launched property in Coorg.
Global Brand Ranking and Market Position
The Leela brand
ranked second globally among the world’s best hotel brands according to the Travel + Leisure World’s Best Awards 2026, the fifth consecutive year featuring in the top three since 2020. The brand’s Net Promoter Score (NPS) reached 86 in Q1 FY27, well above the luxury segment benchmark of 74 in the APAC region. This strong customer loyalty and brand preference comes amid resilient domestic leisure and MICE demand that offset temporary international travel disruptions, highlighting The Leela’s solid position in India’s underserved luxury hospitality market.
Operational Expansion and Developments
In Q1 FY27, Leela Palaces expanded its ARQ by The Leela concept with the opening
of a second club in New Delhi. On July 8, 2026, the company rebranded The Leela Coorg Forest Sanctuary, further enhancing its experiential luxury resort offerings. In addition, Leela Palaces signed a concession agreement to develop a new 30-key wildlife resort within the Tadoba Tiger Reserve in Maharashtra. This resort, expected to cost around Rs 120 crore with a targeted completion by 2030, will augment the company’s presence in India’s premier wildlife tourism circuit alongside Bandhavgarh and Ranthambore tiger reserves.
Financial Position and Growth Strategy
The company’s net debt was Rs 1,331.9 crore as of June 30, 2026, with a net debt to EBITDA ratio
of 1.6 times, indicating substantial capacity for funding future expansion. Leela Palaces is executing a disciplined growth approach focused on capital efficiency, premium market positioning, and balancing owned and managed assets in India’s high-value luxury destinations. The company continues investing in its brand, workforce, and development pipeline to capture the growth potential in India’s luxury hospitality sector.
Sustainability Certifications and Commitments
The Leela’s portfolio is the largest in South-East Asia to achieve the EDGE Advanced Rating for sustainable buildings. All Palace hotels and The Leela Coorg Forest Sanctuary hold Green Building Platinum certification. The company aims to eliminate single-use plastics across all properties by
2030 and maintains a net zero carbon ambition by 2050, advancing renewable energy adoption and environmental stewardship to position itself competitively in luxury hospitality.
