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Leela Palaces Eyes 23 Hotels by 2030
24 Jan
Summary
- The Leela aims for 23 hotels and 5,100 keys by FY30.
- EBITDA is projected to exceed ₹2,000 crore by FY30.
- Company reports strong Q3FY26 results with 52% margins.
The Leela Palaces is embarking on an ambitious growth trajectory, with plans to expand its portfolio to 23 hotels encompassing over 5,100 keys by FY30. The luxury hotel chain anticipates generating an EBITDA exceeding ₹2,000 crore within the same timeframe. This expansion is supported by a robust demand across weddings, MICE, leisure, and inbound travel sectors.
Financially, the company is making strides, aiming for mid-to-high teens growth in the current March quarter. Significant progress has been made in reducing debt, with net debt currently around ₹800 crore. Strategic moves include an international acquisition in Dubai and new management contracts in India, which are already enhancing the earnings base.
Looking ahead to FY27, The Leela Palaces expects further growth driven by new hotel openings, the launch of luxury branded residences in Mumbai, and the rollout of its high-margin members-only club, Arq. The company reported impressive Q3FY26 results, with revenue at ₹457.40 crore and a net profit of ₹147.80 crore, achieving margins of 52%.
International tourism is a key focus, with a 57% international mix in city hotels during Q3FY26, presenting a strong runway for future growth. The company is confident in capturing an outsized market share in this segment, expecting contributions from higher average daily rates and holistic spending.
