Jefferies starts Leela Hotels at Buy as luxury demand and room pipeline gain pace

Jefferies set a Rs675 target for The Leela Palaces, Hotels and Resorts after a June-quarter performance that saw revenue rise 28% YoY to Rs352 crore and EBITDA grow 41.6% to Rs143 crore. The operator has 15 hotels and 10 more in its pipeline, including a 30-key Tadoba resort.

— Source publishedMon, 31 Aug, 2026, 08:24 IST·First seen Mon, 31 Aug, 2026, 10:25 IST·Source NDTV Profit

What happened

The Leela Palaces, Hotels and Resorts · Jefferies initiated Buy coverage on The Leela, citing India’s luxury-travel premiumisation, owned-room growth and

Key facts

  • Jefferies target price: Rs 675/share
  • Stock intraday high: Rs 562.30/share, up 1.43%
  • 15 operating hotels and 4,162 rooms
  • 10 pipeline hotels and 1,095 rooms
  • Q1 revenue: Rs 352 crore, up 28% YoY
  • Q1 EBITDA: Rs 143 crore, up 41.6% YoY; margin 40.6%
  • Q1 net profit: Rs 49 crore versus Rs 8.8 crore
  • RevPAR: Rs 13,982, up 17% YoY
  • ADR: Rs 20,722, up 10%; occupancy: 67.5%
  • Tadoba resort: 30 keys, about Rs 120 crore capex
  • Net debt: Rs 1,331.9 crore; net debt/EBITDA: 1.6x
  • FY26-FY29 estimated EBITDA and PAT CAGR: 19-20%

Why this matters

The 10-property development pipeline, including the Tadoba resort, signals an opportunity to prioritize high-demand luxury destinations and selectively add experiential formats.

What to watch

  • Q2 results showing continued double-digit RevPAR and EBITDA growth.
  • Formal announcements on the 10 planned hotels, especially funding structure and opening timelines.
  • Evidence that Tadoba and other experiential properties can command premium rates without diluting margins.
  • Industry-wide luxury room supply acceleration or weakening corporate and inbound travel demand.
  • Interest-rate, discretionary-spending or foreign-tourist trends affecting premium hospitality demand.
  • Monitor quarterly RevPAR, ARR, occupancy and EBITDA-margin trends against the 28% revenue and 41.6% EBITDA growth base.
  • Seek pipeline details: opening dates, ownership versus management contracts, capital commitments, room additions and expected stabilization periods.
  • Track peer luxury hotel pricing and supply additions in key markets such as Delhi, Mumbai, Bengaluru, Rajasthan and leisure destinations.
  • Watch for additional broker coverage, estimate revisions and institutional ownership changes following Jefferies' initiation.