Leela Palaces Hotels & Resorts:
₹457 Cr Revenue. ₹148 Cr PAT.
RevPAR +20%. Brookfield’s Palace Just Got a ₹194 Cr Dubai Slice.
India’s newest listed luxury hotelier just posted its best quarterly revenue ever, jacked RevPAR by 20% YoY, and casually bought a 25% stake in a Palm Jumeirah resort for $70 million. All while sitting at 40.9x P/E on a ₹14,509 Cr market cap. The Brookfield boys are smiling — are you?
Brookfield’s New Palace: 4,090 Keys, 71% Occupancy, and a Dubai Bonus
- 52-Week High / Low₹475 / ₹381
- Q3 FY26 Revenue₹457 Cr
- Q3 FY26 PAT₹148 Cr
- TTM EPS₹11.2
- Annualised EPS (Q1–Q3 Avg × 4)₹13.80
- Book Value / Share₹184
- Price to Book2.36x
- RevPAR (Q3)₹21,551
- ADR (Q3)₹30,337
- Occupancy (Q3)71%
The Palace That IPO’d and Immediately Went Global
Schloss Bangalore Limited (aka Leela Palaces Hotels & Resorts) listed in June 2025 after raising ₹3,500 crore. Brookfield owns 75.91% through its funds. The company runs 14 owned/managed luxury hotels with 4,090 keys and has nine more in the pipeline adding 1,046 keys. It is the only pure-play luxury hotel chain listed in India that actually owns iconic palaces in Delhi, Bengaluru, Chennai, Jaipur and Udaipur.
Q3 FY26 was fireworks: revenue ₹457 crore, operating EBITDA ₹238 crore (margin 52%), PAT ₹148 crore. RevPAR ₹21,551 (+20% YoY). Management called it “one of the best quarterly performances in the industry.” Then they announced a 25% stake in Dubai’s Palm Jumeirah resort and a fresh HMA for Jaisalmer. All while sitting on a balance sheet that just got a massive debt haircut post-IPO.
Result type locked: Quarterly Results. Annualised EPS uses Q1–Q3 average × 4. The numbers are screaming premium pricing power. The market is still deciding if 40.9x is fair for India’s most expensive hotel rooms backed by Brookfield. Welcome to the palace party.
They Sell ₹30,000-a-Night Dreams in Marble Palaces
Leela runs a hybrid model: owns flagship palaces (asset-heavy) and signs long-term Hotel Management Agreements (asset-light). 53% revenue from rooms, 36% from F&B, 5% from management fees, 6% from retail/ancillary. 70+ restaurants including Jamavar and Le Cirque. Staff-to-room ratio 2.2x — highest in industry for white-glove service.
Portfolio across 11 cities capturing 80% international and 59% domestic air traffic. NPS 85.11. Owned hotels deliver RevPAR 2.9x the Indian hospitality average. Asset-light pipeline (Dubai, Jaisalmer, Mumbai BKC) will add fee income without heavy capex. Brookfield’s global muscle helps source deals like the Palm Jumeirah 25% stake.
Q3 FY26: The Palace Numbers Go Brrr
Result type: Quarterly Results | Q3 FY26 EPS: ₹4.43 | Avg Q1–Q3 EPS: ₹3.45 | Annualised EPS: ₹13.80
| Metric (₹ Cr) | Q3 FY26 Dec 2025 |
Q3 FY25 Dec 2024 |
Q2 FY26 Sep 2025 |
YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 457 | 370 | 311 | +23.5% | +47.0% |
| EBITDA | 238 | 184 | 136 | +29.3% | +75.0% |
| EBITDA Margin % | 52% | 50% | 44% | +200 bps | +800 bps |
| PAT | 148 | 56 | 51 | +164% | +190% |
| EPS (₹) | 4.43 | 1.68 | 1.53 | +164% | +190% |
What Is This Palace Actually Worth?
Method 1: P/E Based
TTM EPS ₹11.2. Industry median 28x. 30–50% premium justified for luxury moat and Brookfield support. Fair P/E band: 35x–45x.
→ 35x × ₹11.2 = ₹392 45x × ₹11.2 = ₹504
Range: ₹392 – ₹504
Method 2: EV/EBITDA
TTM EBITDA ₹699 Cr. EV ₹15,156 Cr → current 21.7x. Luxury hotel comps trade 15x–22x. Near-zero net debt post-IPO.
EV range (16x–20x): ₹11,184 Cr – ₹13,980 Cr → Per share:
Range: ₹335 – ₹419
Method 3: DCF Based
Base FCF ~₹553 Cr (operating cash flow trend). Growth 12–15% for 5 years on pipeline. Terminal 4%. WACC 11%.
→ Terminal Value: ~₹14,200 Cr
→ Total EV: ~₹17,000 Cr (net debt ~₹1,100 Cr)
Range: ₹400 – ₹520
Dubai, Jaisalmer & a Few GST Notices
🔴 The Dubai Palace Play
Closed 25% stake in Sofitel The Palm (546 keys) for $70 million via Aries. Rebrand to The Leela in 2028. Expected payback in 2–3 years via residence sales + management fees. Stabilised contribution ₹180 crore. Current operator till Dec 2026; Leela takes over 2028. Classic asset-light global debut.
⚠️ Other Moves & Notices
- • Jaisalmer 80-key HMA signed — operational by end-CY26, ₹6 Cr stabilised fee
- • Mumbai BKC 250-key plot leased for 80 years at ₹1,302 Cr
- • GST orders on subsidiaries ~₹7.74 Cr — appeals filed, no material impact
- • Promoter pledge created for $500M loan (Sep 2025) — standard Brookfield leverage
✅ Pipeline & Analyst Love
- • 9 hotels / 1,046 keys under construction — Agra, Srinagar, Ayodhya etc.
- • ARQ members-only club soft-launched Bengaluru, rolling out Delhi/Chennai
- • Kotak & Axis Capital investor meets in Feb 2026
- • Crisil upgraded to AA/Stable post-IPO debt reduction
₹8,583 Cr Assets and Debt Slashed Post-IPO
| Item (₹ Cr) | Mar 2023 | Mar 2024 | Mar 2025 | Sep 2025 (Latest) |
|---|---|---|---|---|
| Total Assets | 5,876 | 7,062 | 8,266 | 8,583 |
| Net Worth (Eq + Reserves) | -2,332 | -2,846 | 3,280 | 5,806 |
| Borrowings | 3,883 | 4,453 | 4,142 | 1,713 |
| Other Liabilities | 4,504 | 5,434 | 568 | 730 |
| Total Liabilities | 5,876 | 7,062 | 8,266 | 8,583 |
Borrowings slashed from ₹4,142 Cr (Mar 2025) to ₹1,713 Cr (Sep 2025) using IPO proceeds. Interest cost already trending lower after renegotiation to 8.25%.
From negative territory pre-IPO to ₹5,806 Cr. IPO + retained earnings doing the heavy lifting.
₹6,556 Cr — pipeline capex just starting. Mumbai BKC and owned projects will add more.
Cash Machine With a Side of Capex
| Cash Flow (₹ Cr) | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Operating CF | 318 | 539 | 553 |
| Investing CF | -85 | -786 | -5,730 |
| Financing CF | -318 | 147 | 5,236 |
| Net Cash Flow | -84 | -100 | 59 |
The Report Card of a Luxury Overachiever
Annual Trends — FY23 to FY25 + TTM
| Metric (₹ Cr) | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|
| Revenue | 860 | 1,171 | 1,301 | 1,468 |
| EBITDA | 381 | 548 | 595 | 699 |
| EBITDA Margin % | 44% | 47% | 46% | 48% |
| PAT | -62 | -24 | 48 | 354 |
| EPS (₹) | -1.73 | -0.72 | 1.44 | 11.2 |
From losses to ₹354 Cr PAT in three years. IPO cleaned the balance sheet. Pipeline will do the rest. This is what Brookfield money looks like when it works.
Leela vs The Luxury Gang
| Company | Qtr Revenue (₹ Cr) | Qtr PAT (₹ Cr) | P/E | ROCE % |
|---|---|---|---|---|
| Leela Palaces | 457 | 148 | 40.9x | 12.0% |
| Indian Hotels Co | 2,841 | 954 | 49.5x | 17.2% |
| EIH Ltd | 872 | 255 | 27.1x | 23.4% |
| Chalet Hotels | 582 | 124 | 28.0x | 11.1% |
| Lemon Tree | 406 | 82 | 35.0x | 13.0% |
Leela’s 52% Q3 margin beats almost everyone. Indian Hotels is bigger but trades at higher multiple. EIH has better ROCE but Leela’s RevPAR premium is unmatched. Brookfield scale is the silent edge.
Brookfield Owns 75.91%. Literally the Palace Guards
- Promoters (Brookfield)75.91%
- FIIs9.02%
- DIIs10.58%
- Public4.49%
Pledge created for $500M loan (standard). Shareholders down to 52,887 from 90k post-listing. Brookfield entities dominate top holders — classic PE control.
Promoter: Brookfield (75.91%)
BSREP III funds hold majority via multiple DIFC entities. Global AUM $1 trillion+. ROFO on all Indian hospitality assets. Strategic support baked in.
Axis Max Life & ICICI Pru Watching
DIIs adding stakes post-listing. Retail India still tiny at 4.49%. Palace is still mostly Brookfield’s playground.
Brookfield + Crisil AA = Clean Sheet?
✅ The Clean Sheet
- ✓ Crisil upgraded to AA/Stable post-IPO
- ✓ Debt slashed 60%+ using IPO proceeds
- ✓ Interest coverage improving; rates renegotiated
- ✓ Regular concalls and investor meets
- ✓ No promoter pledge on equity (only loan security)
- ✓ Strong ESG: 65% green energy
⚠️ Watch List
- ⚠ ₹7.74 Cr GST orders on subsidiaries — appeals filed
- ⚠ Promoter created encumbrance for $500M loan
- ⚠ Large capex pipeline — execution risk
- ⚠ Concentration: 70% revenue from three palaces
- ⚠ Royalty-like fees to global brand structure
Post-IPO governance upgraded. Brookfield’s control ensures discipline. Pipeline execution and debt servicing remain the only real watch points. So far, the palace is running smoothly.
Luxury Hotels: Where ₹30k a Night Is “Normal”
Indian luxury hospitality is booming on revenge travel, weddings, and corporate offsites. Government tourism push + rising HNIs + international arrivals = tailwind. Leela’s portfolio sits in top 80% air-traffic cities. RevPAR premium ₹5,000 over peers is structural, not cyclical.
⚡ The Tailwind Factory: Inelastic Luxury Demand
Management says demand “high double-digit across segments”. City + resort both firing. International arrivals up, domestic weddings exploding. Leela’s 2.9x industry RevPAR shows pricing power is real.
💸 The Risk That Never Sleeps: Supply & Cyclicality
Pipeline of 1,000+ keys by FY30 is great — unless delays hit. Hospitality is cyclical; terror, health scares or slowdown can dent occupancy. Leela’s concentration on three palaces adds risk.
🔋 Dubai + Asset-Light = Global Ambition
25% Palm stake + Jaisalmer HMA + Mumbai BKC show hybrid model working. ₹340 Cr stabilised earnings from new additions at ₹1,650 Cr capex — accretive math.
🌞 F&B & Wellness Upside
New outlets, ARQ clubs, spa monetisation. Non-resident footfalls +17%. Banqueting + group segment growing 45%. Wallet share beyond rooms is expanding.
Competitive dynamics: Indian Hotels bigger but trades higher multiple. EIH efficient but smaller luxury play. Lemon Tree budget-adjacent. Leela’s brand + Brookfield scale = clear edge in ultra-luxury. Macro: strong GDP, rising air traffic, wedding season — all green.
The Final Palace Review
Leela Palaces is the newest listed luxury hotelier in India, backed by Brookfield, sitting on iconic palaces, posting 52% EBITDA margins and expanding globally with Dubai. Revenue up 23.5% YoY, PAT up 164%, RevPAR up 20%. Debt down sharply post-IPO. Crisil AA/Stable. Pipeline to 5,136 keys. Yet the stock trades at 40.9x P/E with zero dividend. The market is paying palace prices for palace performance.
The Turnaround Story: From losses in FY23–24 to ₹354 Cr TTM PAT. Occupancy 71%, ADR ₹30k+, RevPAR premium huge. Fifth straight positive PAT quarter. Operating leverage kicking in — 60%+ incremental revenue to EBITDA.
The Global Expansion Wildcard: Dubai 25% stake payback in 2–3 years + Jaisalmer HMA + Mumbai BKC. ₹340 Cr stabilised earnings from new projects at modest capex. Asset-light fees will compound without balance-sheet strain.
Historical context: Listed only nine months ago. Stock up modestly since IPO. Zero dividend but strong cash generation. For long-term investors who believe India’s luxury consumption story and Brookfield execution, this is a compounder in disguise. For short-term traders, volatility from capex and cyclicality is real.
✓ Strengths
- Iconic owned palaces in prime locations
- 52% EBITDA margin — industry leading
- RevPAR 2.9x Indian hospitality average
- Brookfield 75.91% backing + global expertise
- Crisil AA/Stable rating post-IPO
- Debt slashed 60%+; strong liquidity
✗ Weaknesses
- 40.9x P/E — expensive on current earnings
- Zero dividend payout
- Revenue concentration in three palaces (~70%)
- Large ₹750–800 Cr annual capex pipeline
- Minor GST notices and pledge on loan
→ Opportunities
- Asset-light Dubai + Jaisalmer + BKC expansion
- ARQ clubs, F&B, wellness monetisation
- ₹2,000 Cr EBITDA target by FY30
- Rising international arrivals + wedding boom
- RevPAR premium widening to 162 index
⚡ Threats
- Hospitality cyclicality & macro slowdown
- Capex execution delays or cost overruns
- Supply addition in micro-markets
- Any change in Brookfield support philosophy
- High interest coverage still thin at 2.61x
Leela is not just another hotel stock — it’s India’s luxury address backed by the world’s largest alternative asset manager.
At 40.9x P/E the valuation looks rich, but 52% margins, global expansion and RevPAR premium tell a different story. Debt is down, pipeline is live, and demand is inelastic. The palace is built. The question is whether the market will keep paying palace rents. Either way, the lights in these marble corridors are staying on for a long time.