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Leela Palace sees 162% profit surge, allocates funds for new labour codes

The luxury hospitality brand’s operating revenue grew 21% year-on-year to Rs 457.40 crore, while operating EBITDA increased 23% to Rs 237.80 crore.

ENS Economic Bureau

CHENNAI: India’s leading luxury hotel The Leela Palaces Hotels & Resorts on Friday reported a 162% rise in consolidated net profits at Rs 147.88 crore in Q3FY26 from Rs 56.40 crore during same period last year, driven by strong operating leverage and disciplined cost management.

The luxury hospitality brand’s operating revenue grew 21% year-on-year to Rs 457.40 crore, while operating EBITDA increased 23% to Rs 237.80 crore.

This is its best-ever quarterly performance.

Its revenue per available room (RevPAR) grew 20% to Rs 21,551, registering a growth 2.3 times recording fifth consecutive quarter of double-digit RevPAR and EBITDA growth.

The Leela currently operates 14 properties with 4,090 keys across 12 cities in India, including six owned, seven managed, and one franchised hotel.

With 9 hotels now in the pipeline, it is on track to expand to 23 properties over the next three years in high-growth markets including Agra, Ayodhya, Bandhavgarh, Mumbai, Ranthambore, Sikkim, Srinagar and Jaisalmer.

The hotel has also earmarked Rs 6.4 crore in the current year for expenses towards employee benefits due to the implementation of four new labour codes notified by the Union government in November 2025.

Anuraag Bhatnagar, Whole-time Director and Chief Executive Officer, said: “We delivered our best-ever quarterly performance in Q3 FY26 with total operating revenue growing 21% to ₹4,574 million reaffirming our unique luxury positioning and ability to command pricing power, substantially outpacing India’s luxury industry by nearly 2.7 times on a year-to-date basis. We also advanced our strategy of disciplined, capital-efficient growth by signing a management agreement for The Leela Jaisalmer and our first international strategic investment in Dubai.”

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