India’s premium hospitality brand The Leela Palaces Hotels and Resorts is banking on a shortage of luxury hotel rooms and sustained spending by affluent travelers to power revenue and earnings growth in fiscal 2027, its chief executive, Anuraag Bhatnagar, has said.
Backed by global investment firm Brookfield Asset Management, Leela currently operates 23 hotels across India, including properties under development. The company plans to expand its portfolio to at least 35 hotels over the next five to seven years, though it has not fixed a specific launch timeline.
Bhatnagar described India’s luxury consumption cycle as being at a “point of inflection,” driven by rising disposable incomes among high-net-worth individuals and more frequent leisure and business travel. While broader consumer spending has shown signs of unevenness, affluent buyers continue to spend robustly on premium experiences, benefiting sectors such as jewelry, luxury spirits, and high-end hospitality.
The company’s recent financial performance underscores this momentum. For the nine months ended December 31, Leela reported a 19 percent increase in revenue from operations to ₹1,043 crore, while core earnings rose 24 percent to ₹540 crore. The hotel chain has exceeded analyst expectations in each of the three quarters since its stock market debut in June and expects the growth trajectory to continue into FY27. Analysts project revenue to rise around 12 percent to ₹1,707 crore.
A key factor supporting the outlook is the limited supply of luxury hotel rooms in India. With only about 30,000 luxury keys available nationwide, demand continues to outpace supply, helping sustain higher occupancy levels and room rates. In the December quarter, occupancy improved to 71 percent, while revenue per available room (RevPAR) jumped 20 percent year-on-year to ₹21,551.
Although Leela made its first overseas investment last year by acquiring a 25 percent stake in a beachfront resort on Dubai’s Palm Jumeirah, its primary focus remains on expanding within India. The company sees strong long-term potential in key domestic markets, supported by infrastructure upgrades, rising air connectivity, and increasing preference for premium travel experiences.
With a constrained luxury room inventory and a growing affluent customer base, Leela appears well positioned to capitalize on India’s evolving hospitality landscape in the coming years.
