Leela Palaces Hotels & Resorts Limited is a premier, pure-play luxury hospitality brand in India. The company operates a distinguished portfolio of iconic hotels and resorts, meticulously positioned in key gateway cities and leisure destinations across the country. With a current footprint of 14 operational properties comprising 4,090 keys, Leela has established a significant presence in markets such as New Delhi, Bengaluru, Chennai, Mumbai, Udaipur, and Jaipur. The brand is synonymous with opulent Indian luxury, exceptional service, and world-class amenities, catering to the discerning high-end traveler.

The company is executing a clear and aggressive growth strategy, with 9 new properties and over 1,000 keys in its pipeline, which will expand its total portfolio to 23 properties and more than 5,000 keys. This expansion includes strengthening its domestic leisure circuits and making strategic international forays, most notably with an upcoming property in Dubai. Backed by Brookfield, a leading global alternative asset manager, Leela benefits from strong institutional ownership, robust governance, and access to capital, which facilitates unique growth opportunities. The company’s focus is not just on expansion but also on an intensive asset management culture, continuously enhancing its existing properties to drive value and maintain its leadership position in the luxury segment.

Official Website: http://www.theleela.com/

• Q3 FY26 Performance: The company delivered a strong quarter with significant year-over-year (YoY) growth.

• Operating Revenue: Reached ₹4,574 million, a 21% increase.

• Operating EBITDA: Grew by 23% to ₹2,378 million.

• Profit After Tax (PAT): Stood at ₹1,479 million, a substantial 162% increase from ₹564 million in the prior year's quarter.

• 9M FY26 Performance: The nine-month performance underscores a robust growth trajectory and a successful turnaround to profitability.

• Operating Revenue: Increased by 16% to ₹10,429 million.

• Operating EBITDA: Climbed 22% to ₹4,772 million.

• Profit After Tax (PAT): Recorded a profit of ₹2,313 million, a significant improvement from a loss of ₹(698) million in the same period last year.

• Revenue Diversification (Q3 FY26): Growth was broad-based across all key revenue streams.

• Room Revenue: Grew 20% to ₹2,415 million, propelled by strong performance in both the retail (+18%) and groups (+45%) segments.

• F&B Revenue: Increased by 29% to ₹1,662 million, supported by a 17% rise in footfall from non-resident guests.

• Consistent Profitability: The company has now achieved five consecutive quarters of positive Profit After Tax, indicating a stable and profitable operational model.

The company's financials demonstrate robust double-digit growth in both revenue and EBITDA, complemented by expanding margins and a strong, sustained turnaround to profitability.

• Pure-Play Luxury Focus: Leela operates exclusively in the high-margin luxury segment, allowing it to command premium pricing and cultivate a powerful brand identity without dilution.

• Brand Strength and Customer Loyalty: The company's Net Promoter Score (NPS) for 9M FY26 was 86, a full 9 points above the luxury industry average. This metric, which has consistently improved from 84 in FY24, is direct evidence of exceptional guest satisfaction and strong brand loyalty.

• Strategic Institutional Sponsor: Backing from Brookfield provides significant advantages, including access to capital for growth and a network that unlocks unique and accretive acquisition opportunities, such as the projects in BKC, Mumbai, and Palm Jumeirah, Dubai.

• Proactive Asset Management: The company follows a dynamic asset management culture focused on value creation. This is demonstrated by initiatives like the launch of "Arq By The Leela" clubs, the addition of 7 new F&B offerings, and the development of luxury retail space, all designed to enhance guest experience and monetize assets effectively.

Leela's competitive advantage is rooted in its dedicated luxury focus, superior brand equity validated by high NPS scores, and the strategic support of a major institutional sponsor.

• Favorable Demand-Supply Dynamics: The Indian luxury hotel market is projected to experience a significant demand-supply gap, with demand CAGR expected to outpace supply by 4.9% between FY25 and FY28. This imbalance is particularly pronounced in Leela's key operating markets:

• Udaipur: ~1,470 bps gap

• Jaipur: ~1,020 bps gap

• Chennai: ~680 bps gap

• New Delhi: ~460 bps gap

• Bengaluru: ~420 bps gap

• Limited New Competition: In its core markets of New Delhi, Bengaluru, Chennai, and Udaipur, there is no new comparable luxury supply expected until FY28. This creates a high barrier to entry and insulates the company from immediate competitive pressures.

• Market Share Dominance: Leela is effectively capitalizing on these industry tailwinds. In YTD FY26, its RevPAR (Revenue Per Available Room) grew by 19%, more than double the India luxury segment's growth of 7%. This outperformance has resulted in a 15-point gain in market share.

The luxury hotel industry provides a favorable outlook with a structural demand-supply imbalance, which Leela is successfully leveraging to gain significant market share and outperform its peers.

• Key Performance Metrics: The company is posting exceptional growth in its core operational metrics.

• RevPAR Growth: Increased 20% YoY in Q3 FY26, consistently outperforming the broader luxury market by more than double.

• ADR (Average Daily Rate) Growth: Rose 17% YoY in Q3 FY26 to an impressive ₹30,337, demonstrating strong pricing power.

• Occupancy Growth: Improved by 2 percentage points to 71% in Q3 FY26.

• Segment Strength: Growth is balanced across both city and resort properties.

• Resort Hotels: Led the growth with a 28% YoY increase in RevPAR in Q3 FY26.

• City Hotels: Showed strong, stable growth with a 17% YoY increase in RevPAR in Q3 FY26.

• Strategic Expansion Pipeline: Growth is underpinned by a robust pipeline of 9 hotels with 1,046 keys. Key signings in FY26 include a 546-key property in Dubai, a 250-key hotel in BKC, Mumbai, and an 80-key resort in Jaisalmer.

• Future Earnings Drivers: The company is on track to double its management fee income from FY25 levels, with a projected stabilized contribution of ₹750 million from the upcoming Dubai and Jaisalmer properties alone.

Leela is executing a powerful growth strategy, combining strong organic performance in pricing and occupancy with a clearly defined pipeline of high-impact properties in key domestic and international markets.

• Asset Enhancement and Value Creation: Leela is actively unlocking value from its existing portfolio. The recent renovation of The Leela Palace Jaipur, which included new dining outlets (Aravalli Dining Room, Amber Terrace), a club lounge (Peacock Lounge), and upgraded villas, directly resulted in a 27% YoY RevPAR growth for the property in Q3 FY26. Similar initiatives are underway across the portfolio.

• Accretive International Expansion: The acquisition of a 25% stake in The Leela Dubai represents a significant opportunity. The deal is structured for a full equity payback in 2-3 years via residence sales, while securing stabilized annual earnings of ~₹1,820 million and management fees of ~₹670 million for Leela.

• Targeted Urban Growth: The upcoming Leela Palace in Bandra Kurla Complex (BKC), Mumbai, is strategically positioned to capture high-value corporate and leisure demand in India's financial capital. This project is expected to generate stabilized annual earnings of ~₹1,550 million.

• Strengthening Leisure Circuits: By adding properties like The Leela Jaisalmer, the company is fortifying its presence in the high-demand Rajasthan tourist circuit, creating a network effect that encourages longer stays and cross-selling across its properties in Jaipur, Udaipur, and Ranthambore.

Substantial opportunities for value creation exist through enhancing current assets, expanding into high-yield international markets like Dubai, and deepening the company's domestic footprint in prime urban and leisure destinations.

• Occupancy Rates: The portfolio is operating at healthy and improving levels of capacity utilization.

• Overall Occupancy (Q3 FY26): 71%, an increase of 200 basis points YoY.

• City Hotels Occupancy: 74%, up 112 basis points.

• Resort Hotels Occupancy: 62%, showing a strong improvement of 352 basis points.

• Strategic Capital Expenditure: Capex is being directed towards high-return growth projects.

• The Leela Dubai: A total investment of $70 million, comprising $49 million for acquisition and $21 million for capex.

• The Leela Palace BKC, Mumbai: A projected capex of ~₹8,000 million (Leela's share), funded by a 50/50 mix of equity and non-recourse project debt.

• Asset Upgrades: Ongoing capex is also allocated for value-enhancing projects, such as the upgrades at The Leela Palace Jaipur and the installation of a 2.25MW solar plant in Chennai.

The company is running its assets at robust and rising occupancy rates while deploying significant, well-structured capital towards highly accretive growth projects in key global markets.

• FY26-FY27 Execution: The immediate focus is on launching new revenue streams and properties.

• FY26: Launch of "Arq By The Leela" clubs, new F&B outlets, and luxury retail spaces.

• FY27: Stabilization of new initiatives, realization of management fees from Dubai, and the opening of new managed hotels in Jaisalmer and Sikkim.

• FY28 Expansion Wave: The company plans a significant expansion of its owned portfolio in key leisure and pilgrimage destinations, including Agra, Ranthambore, Bandhavgarh, Ayodhya, and Srinagar.

• Long-Term Financial Goal: All strategic initiatives are aligned towards achieving the long-term target of c. ₹20,000 million in EBITDA by FY30. The opening of The Leela Palace BKC, Mumbai, is a key milestone for this goal.

Leela has a clear, phased strategic roadmap focused on launching and stabilizing new assets and revenue streams, systematically expanding its footprint into high-potential leisure circuits, and meeting its ambitious long-term financial targets.

• Best-in-Class Profitability: The company is delivering industry-leading margins that continue to expand.

• Q3 FY26 Operating EBITDA Margin: Reached 52.0%, an improvement of 61 basis points YoY.

• 9M FY26 Operating EBITDA Margin: Stood at 45.8%, a significant expansion of 231 basis points YoY.

• Margin Trajectory: The consistent upward trend in margins highlights strong cost controls, operating leverage, and the ability to command premium pricing.

The company is achieving best-in-class profitability with consistently expanding operating EBITDA margins, reflecting superior operational efficiency and strong pricing power.

• Consistent Outperformance: Leela is decisively outperforming the broader India luxury hotel segment. Its RevPAR growth has been more than 2x the industry average each quarter in FY26.

• RevPAR Index (RGI): The company’s RGI, a direct measure of performance versus competitors, has steadily increased, reaching 162 in Q3 FY26 from 132 a year prior. An RGI well above 100 indicates superior market penetration and pricing strategy.

• Growing RevPAR Premium: Leela now commands a 1.6x RevPAR premium compared to the luxury segment average, up from 1.3x a year ago, showcasing the increasing strength and desirability of its brand.

• Favorable Competitive Landscape: The lack of new comparable luxury supply in Leela's primary markets until FY28 provides a significant competitive moat, allowing the company to further consolidate its market leadership.

Leela is substantially outperforming its luxury competitors, as evidenced by its superior RevPAR growth, a rising RevPAR index, and significant market share gains within a favorable supply environment.

• Prestigious Awards and Global Recognition: The brand's commitment to excellence is validated by numerous international accolades.

• Michelin Keys: A significant honor in the hospitality industry was awarded to The Leela Palace New Delhi (2 Keys), The Leela Palace Jaipur (2 Keys), and The Leela Palace Chennai (1 Key).

• Condé Nast Traveler Awards 2025: The Leela Kovalam was named the "#1 Best Resort in India," with multiple other properties featured among the best in the world.

• Robb Report 2026: The Leela Palace Udaipur was recognized in the "Best of the Best" list.

• Commitment to ESG: The company is actively pursuing its Environmental, Social, and Governance goals.

• Environmental: On track to achieve Net Zero by 2050, with 65% of its current power sourced from renewables.

• Social: The company supports over 50 local artists daily through its ceremonial rituals and has empowered local women by procuring ~125,000 embroidered jute bags.

• Governance: Maintains a responsible supply chain with 100% of vendors compliant with its Code of Conduct and Anti-Corruption policies.

The brand's luxury positioning is continually reinforced by prestigious international awards and Michelin recognitions, while the company operates with a strong and demonstrated commitment to its ESG responsibilities.