Stories
The Leela Targets Double-Digit Growth Driven by Luxury Travel and Expansion
- •The Leela Palaces, Hotels and Resorts aims to sustain double-digit growth over the next five years, fueled by strong luxury travel demand and higher room rates.
- •Over half of the company's business is generated from ancillary services such as food and beverage, wellness, and transportation.
- •The group plans to expand its membership club network and launch luxury residences in Mumbai, with the first property slated to open soon.
- •International guest traffic showed a 13% growth in the second quarter compared to the same period last year.
- •For Q2FY27, the company reported a revenue of ₹412 crore and a net profit of ₹95 crore with a 45.6% margin.
Key Questions Answered
The Leela targets double-digit growth over the next five years driven by strong luxury travel demand, higher room rates, inventory expansion, and non-room revenue streams like food, wellness, and membership clubs. The company reported a net profit of ₹95 crore and revenue of ₹412 crore in the July–September quarter of FY27.
The primary difference is the length of stay, with residents expected to stay for a minimum of around 90 days while experiencing the same signature Leela service and pricing power. The first luxury residences project in Mumbai is scheduled to open toward the end of the financial year.
More than half of The Leela's business comes from ancillary services such as food and beverage, wellness, and transportation. Additionally, the exclusive Arq membership club network is expanding with new clubs to foster lifelong brand affinity and create valuable alternative revenue streams.
