Target: ₹510

CMP: ₹414.45

Leela Palaces Hotels & Resorts Ltd backed and majority-owned by Brookfield, operates as India’s only institutionally-owned pure-play luxury hospitality platform. The company has a a portfolio of five owned palace hotels across Udaipur, Jaipur, Chennai, Bengaluru and Delhi, along with eight managed luxury properties across key urban and leisure markets.

As of end-H1FY26, the company operated 3,544 luxury keys. It has commenced its first international expansion through a strategic investment in a Dubai luxury hotel adding about 546 keys (including 182 residence keys) and an acquisition of a resort in Coorg adding 71 keys, taking its total current inventory to about 4,161 keys. The company has a strong visible pipeline of about 1,008 hotel keys, and 38 keys under development at Udaipur, 19 keys at Coorg and about 245 branded residences across Dubai and Mumbai.

It is following a hybrid growth strategy, retaining and expanding its owned portfolio, while adding keys through capital-light management contracts, supporting disciplined capital allocation. Post the ₹2,500-crore IPO in June 2025, the company reduced its debt by about ₹2,300 crore, lowering net debt/EBITDA from 6.1x to 2.3x. 

We initiate coverage on Leela Hotels with a Buy rating and an FY28E EV/Adj. EBITDA of 18.0x to arrive at a TP of ₹510, implying an upside potential of 22.3 per cent. We expect Revenue and EBITDA to expand at a CAGR of 16.9 per cent and 18.2 per cent respectively over FY26E-29E.

Published on April 7, 2026