India’s Leela Palaces Hotels & Resorts is counting on limited supply of luxury hotel rooms and rising demand from affluent travellers to fuel revenue and earnings growth in fiscal 2027, CEO Anuraag Bhatnagar said.

Consumer spending in India remains uneven, with wealthy buyers continuing to splurge even as broader consumption slows, supporting luxury sectors including hotels, whisky, and jewellery.

Brookfield Asset Management-backed Leela operates 23 hotels across India, including properties under development, and plans to expand to at least 35 hotels over the next five to seven years, though no firm launch timeline has been set.

For the nine months ended December 31, Leela reported a 19% increase in revenue to ₹10.43 billion ($114.7 million), while core earnings rose 24% to ₹5.4 billion. The company has outperformed analyst expectations in each of the three quarters since its market debut in June and expects the trend to continue in FY27, with consensus revenue estimates at ₹17.07 billion.

The luxury hotel supply in India is limited to roughly 30,000 keys, supporting occupancy and room rates. Occupancy rose two percentage points to 71%, while revenue per available room increased 20% to ₹21,551.

Leela made its first overseas investment last year with a 25% stake in a luxury resort on Dubai’s Palm Jumeirah, but its primary focus will remain on India.