Financial Performance - Q2 FY27

Operating Revenue: Increased 33% year-on-year to INR 4,119 million

  • Room revenue: Grew 39% to INR 2,041 million
  • F&B revenue: Grew 21% to INR 1,456 million
  • Management fees: Grew 76% to INR 289 million
  • Other operation services revenue: Grew 25% to INR 333 million

Operating EBITDA: Increased 36% to INR 1,877 million

  • Operating EBITDA margin: 46% (118 basis point improvement YoY)

Profit After Tax: Increased 27% year-on-year to INR 946 million

Finance Cost: Broadly stable at INR 384 million for the quarter

Depreciation: Increased 24% to INR 336 million due to addition of Coorg and investment in value drivers

Tax Expense: INR 158 million (lower due to recognition of deferred tax asset for Coorg)

Financial Performance - H1 FY27

Operating Revenue: Grew 30% year-on-year

Operating EBITDA: Grew 38% year-on-year

  • Margin expanded by 246 basis points

Profit After Tax: Grew 72% to INR 1,433 million

Finance Cost: Fell 37% to INR 777 million (reflecting debt reduction through IPO)

Effective Tax Rate: 16% of PBT for H1 (anticipated to be in 20s for FY27)

Operational Metrics

RevPAR Growth: 30% year-on-year

ADR Growth: 30% to INR 25,046

Occupancy: India headline occupancy at 69%, same-store occupancy over 70%

Market Performance: Outperformed luxury hospitality market (17% RevPAR growth vs market's 13%)

  • RevPAR index expanded to 1.46x from 1.41x
  • RevPAR premium of approximately INR 4,500 over luxury market

Revenue Diversification: 52% of revenue from beyond rooms (F&B, management fees, club revenues, wellness, transport, retail)

Direct Bookings: Brand website contribution to room revenue rose to 15.1% from 10.5% last year

Suite Occupancy: Rose by over 700 basis points

Portfolio Performance

City Hotels: Record occupancy at 74% for H1 (vs 69% last year)

Resorts: Same-store occupancy rose to nearly 60%

Coorg Performance: ADR doubled since rebranding on July 8, 2026; breaking even at EBITDA level

Dubai JV: 25% stake in Palm Jumeirah hotel; operationally breakeven in Q2, improvement in occupancy

Development Pipeline Update

FY27 Openings:

  • The Leela Jaisalmer (luxury desert resort and spa) - in pre-opening phase
  • The Leela Luxury Residences Mumbai - in pre-opening phase, teams on board

Advanced Development Projects:

  • Srinagar, Bandhavgarh, Sikkim, Ayodhya, Agra, Ranthambore, Tadoba, and BKC Mumbai
  • Over 1,000 keys under development across marquee destinations

Mumbai BKC Project Update:

  • Lease deed executed in September 2026 with MMRDA
  • Mixed-use project: 250-key Leela Palace Hotel and 700k sq ft office
  • Leela and Brookfield owning 50% share each in JV
  • Company to seek shareholder approval for investment to buy entire FSI
  • Long-term plan: divest office stake, retain 50% stake in hotel
  • Committed capex: INR 800 crores (INR 400 crores equity, INR 400 crores debt)
  • CY30 timelines remain realistic

Brand Recognition & Awards

Net Promoter Score: Industry-leading 87 for H1 (13 points ahead of Asia-Pacific luxury hospitality average)

Travel + Leisure World's Best Awards 2026: Ranked as world's second-best hotel brand

MICHELIN Keys: New Delhi, Jaipur, and Chennai awarded MICHELIN Keys for second consecutive year

Strategic Initiatives

Value Drivers:

  • Arq By The Leela New Delhi operational
  • Arq Chennai scheduled to open in Q3 FY27
  • Aujasya wellness facility in Bengaluru under development
  • Renewable energy initiatives in Chennai and Coorg

Talent Development:

  • Leela Centre of Excellence delivered over 4,800 man-hours of training
  • Engaged more than 280 participants
  • Recognized among Top 100 of India's Best Workplaces for Women 2026

Balance Sheet & Capital Structure

Net Debt: INR 12,150 million as of September 2026

Net Debt to LTM EBITDA: Improved to 1.4x from 1.6x in March 2026 and 3.7x in March 2025

Debt Maturity: Long-dated maturity profile of more than 10 years

Credit Rating: AA-stable

Borrowing Costs: Reduced by 30 basis points from mid-October 2026

Guidance & Outlook

FY27 EBITDA Growth: Mid-to-high teens guidance maintained

  • H1 performance significantly ahead of guidance run rate
  • H2 expected to deliver high teens growth on elevated base

Q3 Trends: Strong pacing with major events including Bloomberg convention, festive season demand

Corporate Rate Negotiations: Pitching for mid-to-high double-digit growth rates for CY27

Q&A Session Highlights

Sustainability of RevPAR Growth: Management emphasized structural advantages including iconic assets, supply-constrained markets, premiumization trend, and compression events

International Demand: Slow trickling in with low double-digit growth (excluding BRICS); target to return to 50-50 international-domestic mix

Branded Residences: Mumbai residences on track for Q4 FY27 opening; model scalable to Gurgaon, Hyderabad, Bangalore

Management Fees: High EBITDA flow-through (85-90%) for new managed properties; expanding portfolio supports growth trajectory

Staff Costs: Increased due to ESOP expense and additional headcount for value drivers; excluding these, flow-through would be around 60%

Development Timeline:

  • Srinagar and Bandhavgarh: End of CY27
  • Agra, Ayodhya, Ranthambore, Sikkim: CY28
  • Tadoba: CY30

#Tags: #LeelaPalaces #Q2FY27Results #Hospitality #LuxuryHotels #SEBIDisclosure #RegulatoryCompliance #FinancialUpdate #Positive