Leela Palaces Hotels & Resorts (THELEELA) investor relations material

Executive summary

• Q2 FY27 operating revenue rose 33% to ₹4,119 million and operating EBITDA increased 36% to ₹1,877 million; the operating EBITDA margin was 46%.

• RevPAR grew 30% to ₹17,225, supported by 30% ADR growth and broad-based demand; H1 operating revenue rose 30% and operating EBITDA grew 38%.

• Management expects high-teens H2 EBITDA growth and FY27 EBITDA growth significantly above the original mid-teens guidance.

Financial highlights

• Q2 operating revenue was ₹4,119 million versus ₹3,106 million; operating EBITDA was ₹1,877 million, with a 46% margin, up 118 bps.

• H1 operating revenue grew 30% to ₹7,638 million and operating EBITDA rose 38% to ₹3,311 million; margin expanded 246 bps.

• Consolidated Q2 revenue was ₹4,118.66 million, EBITDA ₹2,241.41 million and net profit ₹1,013.46 million; H1 consolidated net profit was ₹1,506.00 million.

• Q2 room revenue grew 39% to ₹2,041 million, F&B 21% to ₹1,456 million, HMA fees 76% to ₹289 million and other operational services 25% to ₹333 million.

• H1 finance costs fell 37% to ₹777 million following IPO-related debt reduction; Q2 finance costs were ₹384 million, up 1%.

Outlook and guidance

• Q3 was ahead of pace, with management expecting high-double-digit RevPAR growth, supported by festive demand and major events.

• Management expects high-teens H2 EBITDA growth despite a high comparison base, with FY27 growth significantly above the original mid-teens guidance.

• FY27 openings include The Leela Jaisalmer and Leela Luxury Residences Mumbai; initial Mumbai residents are expected in the final quarter of FY27.

• Development pipeline comprises 10 hotels and 1,095 keys; the FY30 plan targets 25 properties and 5,257 keys, with EBITDA of ₹8,133 million and a 51% margin.

• Resort occupancy is expected to approach 60%, with potential to reach the high 60s over the next few years; corporate rate negotiations target mid-to-high double-digit growth.