SCHLOSS BANGALORE LIMITED DELIVERS ROBUST Q1 FY26 PERFORMANCE POST IPO

SCHLOSS BANGALORE LIMITED DELIVERS ROBUST Q1 FY26 PERFORMANCE POST IPO

Operator of The Leela Palaces, Hotels and Resorts sees total revenue up 25% to ₹ 3,013 million, EBITDA surges 63% to ₹ 1,280 million, RevPAR records 20% year-on-year growth

 Schloss Bangalore Limited, India’s only listed company focused on the luxury hotel segment operating under “The Leela” brand, announced its financial and operational results for the quarter ending June 30, 2025 (Q1 FY26).  Marking a strong debut as a publicly listed company, The Leela delivered its best-ever first-quarter performance.

Commenting on the results, Mr. Anuraag Bhatnagar, Chief Executive Officer, said: "We are pleased to report a record first-quarter performance. Total revenue grew 25% to ₹3,013 million, and EBITDA rose 63% to ₹1,280 million, supported by a 20% year-on-year RevPAR increase, with market share gains that outpaced the luxury hospitality sector. The performance underscores the strength of India’s luxury travel market and the demand for The Leela’s distinctive experiential offerings. We are entering a defining phase of growth with 8 hotels under development, including our strategic expansion into Mumbai through a landmark mixed-use development in BKC featuring a 250-key ultra-luxury hotel, complementing the 63 high-end serviced apartments under development near Mumbai International Airport.”

ROBUST FINANCIAL AND OPERATIONAL PERFORMANCE IN Q1

·         Total revenue surged 25% year-on-year, EBITDA rose 63% year-on-year and Profit After Tax increased by ₹ 837 million

 

·         Operating revenue increased 17% year-on-year, while operating EBITDA grew 39% reflecting sustained customer preference for The Leela’s distinctive luxury experience and strong pricing power.

·         EBITDA margins expanded to 42.5% driven by operating leverage

·         Improved cost ratios driven by continued focus on operational efficiencies in staffing, F&B, and utilities

·         RevPAR grew 20%, driven by higher ADRs, strong occupancy, and customers’ increasing willingness to pay a premium for The Leela experience – reflected in best-in-class net promoter score of 86

·         Growth was further supported by a rise in bookings through direct channels - especially at resort locations - along with strong demand in MICE and F&B verticals

·         Our owned hotels across all markets posted double-digit RevPAR growth underscoring the brand’s leadership in India’s luxury hospitality segment.

SIGNIFICANT EMBEDDED GROWTH AHEAD

The Leela currently operates 13 properties with 3,544 keys across 11 cities in India -comprising five owned, seven managed, and one franchised hotel. The company has a multi-lever growth engine across same store growth, new verticals, and expansion through 966 keys across six owned and two managed hotels. The Company is well-positioned to deliver a robust mid-to-high teens EBITDA growth in FY26, driven by strong operating momentum and continued strategic execution.

·         Expanding Footprint

o   The Leela Palace Mumbai, BKC: Expanding into Mumbai with an owned hotel, anchored by a premium mixed-use development in Bandra Kurla Complex (BKC). One of the most underserved luxury hospitality markets, BKC has had no new hotel supply since 2011. The project includes a 250-key ultra-luxury hotel to be developed in partnership with Brookfield.

o   Serviced apartments in Mumbai: Signed management agreement for The Leela Luxury Residences and Club, Mumbai comprising of 63 high-end serviced apartments under development located near Mumbai International Airport and slated for completion by FY27.

o   Expansion in key tourist hot-spots: On track to expand over the next three years in high-growth markets including Agra, Srinagar, Ayodhya, Ranthambore, Bandhavgarh, and Sikkim.

 ·         Asset enhancements and brand extensions

• Expanding into ultra-luxury with ARQ by The Leela: Launching this year in New Delhi, Bengaluru, and Chennai, ARQ is a by-invitation-only private members’ club offering access to curated events, experiences, and exclusive privileges. The Bengaluru launch is set for September 2025 and Mumbai launch is scheduled for FY27.

 

• Expansion at The Leela Palace Udaipur: A strategic acquisition of ~1.8 acre adjacent to the existing property will add 33 rooms, 10,000 sq. ft. of banquet space, and expanded F&B offerings.

SUCCESSFUL IPO AND STRENGTHENED BALANCE SHEET

·         In June 2025, The Leela’s ₹35,000 million IPO oversubscribed 4.7x. The proceeds were used to strengthen the company’s balance sheet, bringing net debt down by 91% to ₹2,275 million / 0.3x Net Debt to LTM EBITDA as of June 30, 2025, and funding strategic expansion and brand-building initiatives.

·         CRISIL has upgraded the credit ratings of the company to AA (Stable)