The Leela Palaces is positioning for a strong finish to FY26, driven by robust demand across multiple segments including weddings, MICE (meetings, incentives, conferences, exhibitions), leisure travel, and inbound tourism. The luxury hotel chain reported impressive Q3FY26 results and maintains its confident growth outlook for the remainder of the financial year.

Strong Q3FY26 Financial Performance

The company delivered solid results in the October-December quarter, demonstrating the strength of its luxury hospitality model:

CEO Anuraag Bhatnagar described Q3 as the "best ever quarter three," with growth being broad-based across all elements of the luxury ecosystem. The company expects to maintain mid-to-high teens growth in the fourth quarter, supported by seasonal factors including increased inbound business and strong wedding bookings.

Balance Sheet Strengthening and Debt Reduction

The first full financial year post-listing has seen meaningful progress in balance sheet optimization. The company has successfully reduced its debt burden while pursuing strategic expansion:

This debt reduction has been achieved through disciplined capital allocation and an asset-light expansion strategy. The company completed its first international acquisition in Dubai and signed management contracts including a new property in Jaisalmer and progress on the BKC Leela Palace project.

FY27 Growth Drivers and Expansion Plans

The company has outlined several key growth initiatives for FY27 that will drive both same-store growth and new revenue streams:

New Property Openings:

• Three hotel openings planned
• First luxury branded residences in Mumbai
• The Leela Jaisalmer in an exotic location

Arq Members-Only Club Expansion:

• Delhi opening in March
• Chennai and Mumbai launches by year-end
• High-margin revenue contributor with strong member pipeline

The Arq club concept, already operational in Bangalore, operates on an invite-only basis and creates networking opportunities while generating high-margin revenue through membership fees and utilization across the hotel portfolio.

International Tourism and Revenue Mix

International guest contribution showed mixed performance across property types. City hotels achieved a 57% international mix in Q3, while resort properties recorded 28% international guests. This international business provides higher average daily rates (ADR), longer stays, and greater holistic spending per guest, offering significant growth runway as inbound tourism recovers.

Long-term Vision: FY30 Targets

The company has articulated ambitious but achievable targets for FY30:

This expansion will include a balanced portfolio of ownership and managed hotels across city centers and exotic resort destinations. The company plans to create new revenue streams through heritage properties, wildlife resorts, and skiing destinations, diversifying its luxury hospitality offerings.

The Leela Palaces appears well-positioned to capitalize on the recovery in luxury travel demand while maintaining its focus on high-margin operations and strategic expansion. The combination of strong operational performance, improved balance sheet metrics, and clear growth initiatives supports the company's confident outlook for sustained growth in the luxury hospitality segment.