Luxury-hotel operator The Leela Palaces, Hotels and Resorts (formerly Schloss Bangalore) has delivered a strong Q2 FY26, while laying out plans to step beyond Indian borders with its first international property.
For the quarter ended September 30, 2025, The Leela recorded total revenue of ₹3,334 million, up 11% year-on-year. EBITDA climbed 17% to ₹1,607 million, and profit after tax came in at ₹747 million.
Key performance indicators underline operational strength: RevPAR rose 13 % to ₹13,262, aided by improved occupancy and higher average daily rates. Gross margin expanded to 48.2%. The company attributes this outperforming growth to better channel mix, direct bookings and focused cost discipline.
In a move signaling its global ambitions, The Leela’s board approved binding agreements to acquire a 25% stake in a luxury beachfront resort on Palm Jumeirah, Dubai, marking the brand’s first step into the international hospitality arena.
The resort spans 23 acres and comprises 546 keys including a 361-room hotel, 182 residences and 3 villas. For its quarter-share, The Leela has committed capital of roughly US $49 million (₹ 4,370 million). The remaining 75% stake will be held via private funds managed by Brookfield Asset Management. The company says the Dubai deal will amplify its brand presence and potentially capture high-yield guest flows between India and the Gulf.
- Home market momentum: With four consecutive quarters of PAT positivity and strong RevPAR growth, The Leela is capitalising on India’s luxury hotel rebound.
- Global platform building: The Dubai venture enables the brand to diversify risk, access international partnerships, and raise its global profile, a shift from purely domestic growth.
- Execution and capital focus: The deal is structured with a minority stake, leveraging a local development partner for the bulk of execution and investment. This balance aids scalability and financial flexibility.
The combination of consistent domestic performance and selective international expansion puts The Leela in a sweet spot, luxury demand rising, supply moderate, and consumer willingness to pay improving. However, global launches bring complexity: cultural alignment, brand consistency across markets and ROI timelines will be key. For industry stakeholders— investors, hoteliers, luxury F&B operators—The Leela’s trajectory offers a blueprint for how Indian luxury hotel brands can transition from national champions to global contenders.
