Leela Palaces Hotels & Resorts Achieve Strong Q2 FY26 Growth, Launch First International Project in Dubai

Solid Financial Performance in Q2 FY26

Leela Palaces Hotels & Resorts Limited showcased a commendable growth trajectory in the second quarter of fiscal year 2026. Total revenue climbed by 11% year-on-year, reaching INR 3,334 million, complemented by a 17% increase in EBITDA to INR 1,607 million. Profit after tax (PAT) also rose to INR 747 million, reinforcing the hotel’s strong financial health. The EBITDA margin significantly improved to 48.2%, reflecting effective operational efficiencies and prudent cost management strategies.

Key Metrics Overview

Strong Operational Indicators

The company experienced impressive relative performance metrics, with Revenue Per Available Room (RevPAR) up by 13%, tied to increased occupancy rates and average daily rates (ADR). Both city and resort properties within The Leela’s owned inventory displayed strong double-digit RevPAR growth, underscoring effective demand management across segments. These achievements led to a same-store portfolio contributing about 77% flow-through to EBITDA during the first half of FY26, far beyond market industry benchmarks.

International Expansion: First Venture into Dubai’s Luxury Market

For the first time, Leela Palaces has set foot outside Indian borders with a strategic acquisition involving a 25% stake in a high-profile, luxury beachfront resort located at Dubai’s prestigious Palm Jumeirah. This 23-acre resort features 546 keys in total, including a 361-room hotel, 182 residences, and a trio of villas. The remaining 75% equity is managed by Brookfield-managed private funds.

This move positions Leela Palaces to capitalize on Dubai’s flourishing tourism scene—the city is renowned for its iconic blend of luxury and cosmopolitan lifestyle, making it a especially vibrant destination for upscale travelers seeking beach resorts with sophisticated amenities. This international venture could signal additional future expansions, potentially unlocking fresh markets for distinguished hospitality experiences.

Domestic Growth and Innovations

Back home, the company continues its expansion, with nine new hotels underway across strategic locales such as Agra, Ayodhya, Bandhavgarh, Mumbai, Ranthambore, Sikkim, and Srinagar. Alongside this, Leela Palaces also unveiled “ARQ by The Leela,” an exclusive invite-only members club that aims to provide bespoke luxury experiences. Furthermore, the launch of a new luxury retail segment at Leela Palace Bengaluru hosts marquee brands like Sabyasachi and Zoya, enhancing the brand’s footprint beyond hospitality into lifestyle and luxury retail sectors.

Financial Strength & Outlook

Leela Palaces maintains a healthy balance sheet post-IPO, with a conservative net debt to last twelve months EBITDA ratio of 0.5x and an improved credit outlook reflected in an upgraded AA (Stable) rating. The company forecasts sustained mid-to-high teens EBITDA growth for FY26 as portfolio enrichment, solid same-store growth, and India’s favorable luxury market conditions continue to drive performance.

Vaikutukset matkustamiseen ja siirtoihin

The expansion of luxury hospitality brands like Leela Palaces at renowned global destinations such as Dubai inevitably boosts demand for premium taxi and transfer services. Travelers arriving at Dubai International Airport or Indian cities featuring new Leela hotels will increasingly seek reliable, comfortable, and personalized transportation options. Here, services like GetTransfer.com can fill the gap by allowing travelers to pre-select the exact vehicle type, view driver details, read ratings, and enjoy transparency and ease of booking—qualities essential for luxury-focused customers.

Benefits for Travelers and Service Providers

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Katse eteenpäin

The progress of Leela Palaces shines a spotlight on the dynamic growth in luxury hospitality markets, particularly in South Asia and the Middle East. Although this news might not disrupt the global tourism map singlehandedly, it reflects an ongoing trend of expanding upscale travel offerings and increasing international connectivity. GetTransfer keeps pace with such developments, ready to offer efficient and personalized transfer options worldwide.

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Yhteenveto

Leela Palaces Hotels & Resorts reported solid financial growth in Q2 FY26 with a sharp 11% rise in revenue and robust EBITDA gains. The company’s strategic leap into Dubai’s Palm Jumeirah marks its first international venture, enhancing its profile on the global luxury hospitality stage. Simultaneously, the ongoing domestic expansion, innovative clubs, and retail avenues showcase a brand committed to evolving guest experiences.

The increasing sophistication and global reach of luxury hotels amplify the importance of dependable, transparent transfer services. Platforms like GetTransfer.com provide travelers with a practical way to book exact vehicles, evaluate services upfront, and enjoy seamless rides in cities or to airports worldwide. Whether it’s a city transfer, a private driver, or a specialized limousine service, travel experiences hinge on reliable transport that matches luxury accommodation standards. This synergy ultimately enriches the way travelers explore and enjoy their destinations.