Leela Palaces Hotels & Resorts Limited (The Leela), a pure-play luxury hotel company, said that with nine hotels in the pipeline, it is on track to expand to 22 properties over the next three years in high-growth markets including Agra, Ayodhya, Bandhavgarh, Mumbai, Ranthambore, Sikkim, Srinagar and now Dubai. The Leela currently operates 13 properties with 3,544 keys across 11 cities in India, including five owned, seven managed, and one franchised hotel.
The company also said that it has received board approval to sign binding agreements to acquire a 25% stake in a luxury beachfront resort in Dubai's iconic Palm Jumeirah. Private funds, managed by Brookfield, will acquire the balance 75% stake. For its 25% equity stake, The Leela will require upfront capital of $49 million (Rs 437 crore).
Upon conversion to The Leela, this will mark the brand's first international foray. The resort is spread across 23 acres on one of the largest freehold beachfront land plots in Dubai, and comprises of 546 keys including a 361 key hotel, 182 residences and three villas.
The Leela said that the purchase price of $503 million implies an entry multiple of 12.8x on estimated CY 2025 EBITDA and 7.0x on stabilized 2030 EBITDA. It added that 100% of the company’s equity is expected to be returned within 2-3 years through the sale of branded residences.
The Leela on Tuesday reported a net profit of Rs 74.7 crore for the second quarter of the financial year 2026, as against a net loss of Rs 51.17 crore in the same period last year. The company’s consolidated revenue from operations was Rs 310.65 crore during the quarter under review, as against the Rs 277.15 crore reported in the same period last year. Revenue Per Available Room (RevPAR) grew 13% to Rs 13,262, which the company claims outperformed luxury segment across all markets with 3x market benchmark growth in H1 FY26.
Anuraag Bhatnagar, Chief Executive Officer, said, "This marks our fourth consecutive quarter of positive PAT, underscoring the strength of our business. We remain on track to deliver mid-to-high teens EBITDA growth for FY26, supported by robust operating momentum, strategic initiatives, and continued portfolio enhancements.” He added, “We are also very excited to announce our international foray with entry into Dubai’s Palm Jumeirah, a top luxury tourist destination, extending The Leela’s hospitality on a global stage.”
