The Leela Palaces, Hotels and Resorts plans to expand its portfolio from 15 to 25 properties by 2030, on the back of sustained demand for luxury travel, premium experiences and an under-supplied high-end hospitality market even as international travel faces near-term headwinds.
The Brookfield Asset Management-owned luxury hotel chain has lined up 10 new properties with a pipeline of 1,095 keys, taking its total inventory beyond the current 4,162 keys spread across six owned hotels, seven managed properties and one franchise. The upcoming portfolio includes hotels in Agra, Ayodhya, Jaisalmer, Sikkim, Srinagar and Dubai, alongside a stronger push into wildlife, wellness and branded residences.
Strong Q1 Financial Performance
The expansion comes as the company reported a sharp improvement in its financial performance for the April-June quarter. Consolidated net profit rose nearly fivefold to Rs 48.8 crore from Rs 8.8 crore a year ago, while revenue from operations grew 28.1% year-on-year to Rs 352 crore. Operating Ebitda increased 41.4% to Rs 143.4 crore, with Ebitda margin expanding to 40.7% from 36.9% a year earlier.
The performance was driven by continued pricing power and healthy occupancy. Revenue per available room (RevPAR), a key industry metric, rose 17% to Rs 13,982, supported by a 10% increase in average daily rate (ADR) to Rs 20,722 and a 4% improvement in occupancy to 67.5%. The firm said robust domestic leisure travel and demand from meetings, incentives, conferences and exhibitions offset the temporary slowdown in international travel.
“Our first quarter performance outperforming the industry reflects the enduring strength of the brand and the structural opportunity we see in India’s underserved luxury hospitality market,” Anuraag Bhatnagar, whole-time director and CEO, said. Beyond conventional luxury hotels, the company is broadening its portfolio with differentiated offerings aimed at higher-spending travellers.
Broadening Horizons with Wildlife
These include The Leela Luxury Residences Mumbai, scheduled to open next quarter, The Leela Coorg Forest Sanctuary, rebranded in July, and a wildlife portfolio comprising resorts in Tadoba, Ranthambore and Bandhavgarh. It is also developing a second ARQ by The Leela in New Delhi. Bhatnagar said travellers are increasingly seeking curated experiences rather than just accommodation, leading the company to invest in wellness, nature-based destinations and branded luxury experiences as part of its long-term growth strategy.
Marking its 40th anniversary, the company also launched ‘A Living Raga’, a commemorative music album in collaboration with Grammy Award-winning sarod maestros Amaan Ali Bangash and Ayaan Ali Bangash.