Leela Hotels logs net profit of ₹74.7 crore, announces global foray

Leela Palaces, Hotels and Resorts, announced its international foray on Thursday after it received board approval to sign binding agreements to acquire a 25 per cent stake in a luxury beachfront resort at Palm Jumeirah in Dubai.

 

“This aligns with our long-term strategy to expand the Leela brand globally and diversify our revenue stream, reinforcing our commitment to sustainable value creation,” the management told investors in a post results interaction.

 

The Leela will require upfront capital ₹4,370 million for the 25 per cent stake, while private funds, managed by Brookfield, will acquire the balance 75 per cent stake.

 

The transaction will be funded through a combination of equity and non-recourse debt. Leela’s contribution will be via existing cash and internal accruals, the company said, adding that the transaction is expected to close in the December quarter.

 

The luxury hospitality player reported a consolidated net profit of ₹74.7 crore in the September quarter. It had reported a consolidated net loss of ₹51.17 crore in the same period last year. Meanwhile, its consolidated revenue from operations grew 12 per cent to ₹310.6 crore from ₹277 crore in the period a year ago.

 

Further, the company’s revenue per available room (RevPAR) grew 13 per cent to ₹13,262, driven by strong average daily rates (ADR) and sustained occupancy levels in a seasonally weak quarter. Occupancy rates for the group grew by 4 percentage points to 69 per cent in the quarter.

 

The company highlighted a strong double-digit RevPAR growth of 14 per cent and 11 per cent across its city and resort hotels respectively.

 

The company further said that it will seek regulatory approvals to demerge the office business of the Mumbai BKC mixed-use development. Under the revised structure, The Leela will retain and fund a 50 per cent stake in the hotel component, while Brookfield will fund the remaining 50 per cent of the hotel and fully fund and own the 0.7 million square feet office space.

 

“We delivered a robust performance in Q2 FY26, our fourth consecutive quarter of positive PAT, underscoring the strength of our business.  We remain on track to deliver mid-to-high teens EBITDA growth for FY26, supported by robust operating momentum, strategic initiatives, and continued portfolio enhancements,” said Anuraag Bhatnagar, chief executive officer, Leela Palaces, Hotels and Resorts in a release. 

The Leela currently operates 13 properties with over 3,500 keys across 11 cities in India, which include five owned, seven managed, and one franchised hotel. 

 

Increasingly, Indian hospitality companies are spreading their wings far beyond the country’s borders. Earlier this year IHCL announced its debut in South Africa’s Kruger National Park with three luxury lodges, while luxury giant Oberoi Hotels has also mapped out an extensive international expansion, including a 21-key property in Mayfair in central London set to open in 2028. 

Global foray

• Revenue grew 12% to ₹310.6 cr
• RevPAR grew 13% to ₹13,262
• Occupancy rates grew by 4 percentage points to 69%