Leela Banks on Luxury Boom for FY27 Growth
India’s The Leela Palaces Hotels & Resorts is targeting strong revenue and earnings growth in fiscal 2027, betting on a shortage of luxury hotel rooms and rising demand from affluent travellers. CEO Anuraag Bhatnagar said the company sees a long-term inflection point in India’s luxury consumption story, as wealthy consumers continue to spend despite uneven broader consumption trends.
The Brookfield Asset Management-backed chain currently operates 23 hotels across India, including properties under development, and plans to expand to at least 35 hotels over the next five to seven years. For the nine months ended December 31, Leela reported a 19% increase in revenue to 10.43 billion rupees, while core earnings rose 24% to 5.4 billion rupees. The company has surpassed analyst expectations in each quarter since its market debut in June and expects the momentum to continue into FY27.
With only around 30,000 luxury hotel rooms available nationwide, tightening supply and a growing affluent base are supporting occupancy and room rates. December-quarter occupancy rose to 71%, while revenue per available room climbed 20% year-on-year. Although Leela made its first overseas investment last year with a 25% stake in a luxury resort on Dubai’s Palm Jumeirah, its primary focus remains the Indian market.
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