Leela Palaces Hotels & Resorts Limited has reported a standout financial and operational performance for the quarter ended December 31, 2025 (Q3 FY26), recording its strongest quarterly results to date and extending its lead over the Indian luxury hotel segment. The quarter marked the company’s fifth consecutive period of double-digit growth in both Revenue per Available Room (RevPAR) and EBITDA, underscoring the strength of its luxury positioning and disciplined operating model.
Best-Ever Quarterly Performance Driven by Pricing Power
During Q3 FY26, The Leela delivered total operating revenue of ₹4,574 million, reflecting a year-on-year growth of 21 percent. Operating EBITDA rose 23 percent to ₹2,378 million, while profit after tax surged 162 percent to ₹1,479 million, making this the company’s most profitable quarter on record. EBITDA margins expanded to 52 percent, supported by strong operating leverage and tight cost discipline. Over the first nine months of FY26, more than 60 percent of incremental operating revenue flowed directly to EBITDA, highlighting the scalability of the company’s operating platform.
RevPAR increased 20 percent to ₹21,551, significantly outperforming the broader Indian luxury hotel segment by approximately 2.3 times during the October–November period. Growth was broad-based across revenue streams, with room revenue rising 20 percent on the back of stronger retail demand and a 45 percent increase in group business, led by weddings. Food and beverage revenue climbed 29 percent, driven by robust banqueting and MICE demand. Direct bookings via Brand.com grew 153 percent year-on-year, further strengthening margins through improved direct-to-consumer economics.
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Leadership Perspective on Growth Momentum
Commenting on the results, Anuraag Bhatnagar, Whole-time Director and Chief Executive Officer, said,
“We delivered our best-ever quarterly performance in Q3 FY26 with total operating revenue growing 21% to ₹4,574 million reaffirming our unique luxury positioning and ability to command pricing power, substantially outpacing India’s luxury industry by nearly 2.7x on a year-to-date basis. We also advanced our strategy of disciplined, capital-efficient growth by signing a management agreement for The Leela Jaisalmer and our first international strategic investment in Dubai.”
Capital-Efficient Expansion Across India and Overseas
The quarter also marked two strategically significant growth moves. Domestically, The Leela secured a management contract for an 80-key luxury hotel in Jaisalmer spread across 30 acres, scheduled to open by mid-FY27. This addition strengthens the brand’s Rajasthan footprint, enabling a four-destination circuit across Jaipur, Udaipur, Ranthambore, and Jaisalmer, designed to enhance cross-selling and guest retention.
Internationally, The Leela completed the acquisition of a 25 percent equity stake in a landmark 23-acre luxury beachfront resort on Palm Jumeirah, Dubai, marking its first overseas investment. The total equity investment of approximately USD 70 million, including capex, is expected to be recovered within two to three years through branded residence monetisation. The transaction secures continuity of the hotel management agreement without key money and is expected to generate around ₹670 million in annual management fees upon stabilisation, along with profit-share participation.
Expanding Portfolio and Strengthened Financial Position
As of Q3 FY26, The Leela operates 14 hotels comprising 4,090 keys across 12 Indian cities, including six owned, seven managed, and one franchised property. With nine hotels now in the pipeline, the portfolio is set to expand to 23 properties over the next three years across high-growth destinations such as Agra, Ayodhya, Bandhavgarh, Mumbai, Ranthambore, Sikkim, Srinagar, and Jaisalmer.
The company also strengthened its balance sheet during the quarter by renegotiating term loans, reducing interest costs from 9.1 percent to 8.25 percent. This improvement enhances profitability, return on equity, and financial flexibility, while maintaining a conservative leverage profile.
Clear Line of Sight to Long-Term Value Creation
Reiterating its long-term ambition, The Leela remains on track to achieve an EBITDA target of ₹20,000 million by FY30. This growth is anchored in sustained same-store performance, expansion into new verticals such as Arq by The Leela, curated food and beverage concepts, wellness and experiential offerings, selective owned asset development in high-barrier markets, and a capital-light expansion strategy through management contracts and strategic investments.
With strong momentum, disciplined execution, and a resilient luxury portfolio, The Leela Palaces Hotels & Resorts continues to set the benchmark for performance and value creation in India’s luxury hospitality landscape.
