Leela Palaces Hotels Analyzed
Leela Palaces Hotels and Resorts is a luxury hotel company that’s getting a thumbs-up from analysts. ICICI Securities, a financial firm, recently said investors should buy this stock, believing it’s a good investment.
Key Points
- Large Luxury Company: Leela has 14 hotels with 4,090 rooms.
- Strong Growth Plans: They’re adding more hotels and rooms by 2030.
- Healthy Finances: The company has a strong balance sheet with low debt.
- High Growth Forecasts: Analysts predict strong revenue and profit growth.
- Luxury Demand Rising: Demand for luxury hotels is increasing in India.
- Positive Analyst Rating: ICICI Securities recommends buying the stock.
The company operates in a growing market. Leela has a significant advantage: it’s one of the biggest luxury hotel chains in India, with 14 hotels and a lot of rooms – 4,090 to be exact. This means it’s well-positioned to benefit as more people travel and want to stay in fancy hotels.
Analysts predict that Leela will grow its business significantly over the next few years. They expect revenue and profits to increase by 16% and 17% respectively, between 2025 and 2028. This is largely driven by adding new hotels and rooms – they plan to have over 5,000 rooms by 2030, including 763 newly owned hotels and 283 managed ones.
Importantly, Leela has a strong financial position. As of March 2025, their debt is manageable. After a successful IPO in June 2025, they’ve already paid off a large portion of their debt and have invested in upgrades. This healthy financial situation gives them the freedom to expand and invest in new ideas.
Furthermore, the luxury hotel market in India is expected to grow. Experts predict that demand for luxury hotels will rise by 13.7% between 2025 and 2028. This means more people will be looking for high-quality places to stay, benefiting Leela’s business.
ICICI Securities has set a target price of ₹600 for the stock, suggesting it could increase by 45% from its current price of ₹414. This makes it an attractive investment for those looking to capitalize on the growth potential of the luxury hotel sector in India.
Investing in Leela Palaces Hotels and Resorts could be a smart move given the growing luxury travel market and the company’s strong fundamentals.
