Leela Palaces Hotels & Resorts reported a strong Q3 FY26 performance, with a 20% year-on-year increase in RevPAR and a 23% rise in operating EBITDA, driven by a 17% uplift in Average Daily Rate (ADR). The company's room revenues grew by 20%, supported by a significant 153% growth in website performance. Food and beverage revenue saw a substantial 29% year-on-year increase, fueled by a 17% rise in non-resident footfalls across restaurants and banqueting. Operating EBITDA margins reached 52%, marking the fifth consecutive quarter of double-digit growth in both RevPAR and EBITDA. The company is well-positioned to exceed its earlier guidance of mid-to-high teens EBITDA growth for FY26. Leela Palaces Hotels & Resorts continues to gain market share, with its RevPAR premium over the India luxury market increasing from 141 to 162. Key initiatives include the repositioning of The Leela Palace, Jaipur, with revamped F&B offerings and enhanced guest experiences, leading to a 27% RevPAR growth in Jaipur for Q3 FY26. The company also announced strategic capital-efficient growth, including a 25% equity stake in a Dubai asset with an upcoming management contract, involving a total equity investment of USD 70 million, expected to generate Rs 180 crores in stabilized earnings. A new 80-key luxury hotel in Jaisalmer has been signed under a management agreement, scheduled to open by the end of the calendar year. The company reaffirms its long-term EBITDA target of Rs 2,000 crores by FY30 through same-store growth and expansion. Financially, operating revenues increased by 21% year-on-year to Rs 457 crores, and operating EBITDA rose to 23% year-on-year to Rs 238 crores. Profit After Tax (PAT) increased from Rs 56 crores in Q3 FY25 to Rs 148 crores, driven by EBITDA expansion and reduced finance costs. The company also highlighted that its term loans were renegotiated, bringing down the interest rate from 9.1% to 8.25%. Management expressed confidence in sustaining mid-to-high teens EBITDA growth over the next two-three years, driven by ADR and occupancy expansion, new F&B and spa outlets, and cost optimization initiatives.
