Leela Palaces Hotels & Resorts Reports Steady Q2 FY26 Growth and Announces Entry into Dubai
Leela Palaces Hotels & Resorts Limited (formerly Schloss Bangalore Limited) announced its financial and operational results for the quarter ended September 30, 2025 (Q2 FY26).
Key financial highlights:
Total revenue increased 11% year-on-year to ₹333.4 crore.
EBITDA rose 17% to ₹160.7 crore, with margins at 48.2%.
PAT grew to ₹74.7 crore, marking the fourth consecutive quarter of positive profitability.
RevPAR grew 13% to ₹13,262, supported by higher occupancy and ADR.
The company currently operates 13 properties with 3,544 keys across 11 cities in India. With nine additional hotels in the pipeline, it plans to expand to 22 properties over the next three years in markets such as Agra, Ayodhya, Bandhavgarh, Mumbai, Ranthambore, Sikkim, Srinagar, and Dubai.
Leela has received board approval to acquire a 25% stake in a luxury beachfront resort in Dubai’s Palm Jumeirah. This will be the brand’s first international property. Private funds managed by Brookfield will hold the remaining 75%.
The company also plans to demerge the office business at its Mumbai BKC mixed-use development. Under the revised structure, Leela will retain and fund a 50% stake in the hotel component, while Brookfield will fully fund and own the office space.
Post-IPO, the company continues to strengthen its balance sheet, with net debt to LTM EBITDA at 0.5x. Strategic refinancing and improved cost of debt (now 8.4%) have enhanced financial flexibility for future growth initiatives.
Leave a comment