Leela Palaces Hotels & Resorts Limited reported a robust performance for the first quarter of FY27 ended June 30, 2026. Revenue surged by 28% year-on-year to INR3,520 million, driven by strong same-store growth and contributions from new properties. Operating EBITDA saw a significant increase of 41% to INR1,434 million, with an EBITDA margin of 41%.
Leela Palaces Hotels & Resorts Reports Strong Q1 FY27 Performance
Leela Palaces Hotels & Resorts Limited announced its financial results for the first quarter of FY27, ended June 30, 2026, showcasing significant growth across key performance indicators. The company reported a 28% increase in operating revenue, reaching INR3,520 million. This growth was attributed to strong same-store performance, the contribution from the newly acquired property in Coorg, enhanced F&B revenues, and increased HMA fees income.
Key Financial Highlights
Operating EBITDA for the quarter grew by an impressive 41% year-on-year, amounting to INR1,434 million. This resulted in a record first quarter EBITDA margin of 41%. The company highlighted its strong operating leverage and disciplined cost management as key drivers for this profitability improvement. Consolidated PAT also saw a substantial five-fold increase year-on-year to INR488 million.
Operational Performance and Growth Drivers
The quarter saw a notable 17% growth in RevPAR, fueled by a 10% increase in Average Daily Rate (ADR) and a 4% improvement in occupancy. The company’s existing portfolio of five owned palace hotels experienced occupancy rising to nearly 70%. Domestic room revenue increased by 25% year-on-year, underscoring the resilience of domestic demand and the company’s strategic pivot towards it. Non-room revenues, including F&B which grew 25% to INR132 crores, continue to contribute over 50% of the operating revenue, demonstrating a diversified earnings profile.
Expansion and Future Outlook
Leela Palaces Hotels & Resorts remains on track with its expansion strategy, adding new properties and keys to its portfolio. The company signed a concession agreement for a premium resort in Tadoba and is progressing on its development pipeline of over 1,000 keys. The company expressed confidence in achieving double-digit RevPAR growth and mid-to-high teens EBITDA growth for FY27, supported by a strong operating momentum, development pipeline, and iconic brand positioning.
Source: BSE
