As the hospitality industry moves into 2026, growth is no longer being driven by recovery or scale alone. Instead, intent, experience and discipline are defining the next chapter.
In this forward-looking perspective, Anuraag Bhatnagar, CEO, The Leela Palaces, Hotels and Resorts, outlines how luxury hospitality is evolving—where performance, personalisation and purpose intersect to shape a more meaningful future for the sector.
From Recovery to Intent-Led Growth
“As the hospitality industry looks ahead to 2026, it is clear that we are entering a more deliberate phase of growth. The recovery cycle is behind us. Demand has stabilised, pricing power has returned, and the focus has shifted towards more thoughtful, value-led expansion. What will define the next phase of the industry is not scale, but intent.
“For brands like The Leela, which has evolved alongside India’s luxury hospitality journey for nearly four decades, this shift feels timely and necessary. It is also reflected clearly in performance. In the third quarter, we delivered another quarter of strong and consistent growth, with operating revenue increasing over 20% year-on-year and EBITDA margins expanding beyond 50%, among the strongest in the Indian luxury hospitality segment.
The Redefinition of Luxury
“Luxury itself is undergoing a meaningful transformation. Today’s traveller is globally aware, emotionally discerning and far more selective. Traditional notions of opulence are giving way to experiences that feel personal, grounded and rooted in place.
“This shift is also changing the role hotels play. Hospitality is moving beyond being asset-led to becoming experience-driven. Rooms remain important, but dining, wellness, curated programming and destination-led experiences increasingly shape how guests engage with brands.
“India’s opportunity within this landscape is compelling. Rising affluence, aspirational domestic travel and sustained global interest in India are converging with a renewed appreciation for heritage and culture. The next phase of growth will favour brands that interpret these strengths through a contemporary lens, globally fluent yet deeply rooted.
Discipline & Mindfulness
“Alongside this experiential evolution, the industry is becoming more disciplined. Capital efficiency, operational rigour and yield quality are now as critical as storytelling. At The Leela, this has translated into consistent outperformance, with 2.7 times RevPAR growth on a Year-to-date basis exceeding the luxury segment for multiple consecutive quarters and increasing direct bookings across an operational portfolio of 14 luxury hotels in key business and leisure markets. This balance between scale and selectivity continues to shape how we approach growth.
“Mindfulness is another defining force shaping hospitality in 2026. Sustainability is no longer a differentiator but a baseline expectation. In a service-led industry, people remain the most enduring competitive advantage. Through initiatives such as the Leela Leadership Development Programme and The Leela Palace Service Development Programme, we continue to invest in leadership depth and service consistency as long-term capability builders that sustain excellence as we grow.
“Looking ahead, three themes will define hospitality’s next chapter. Personalisation that feels intuitive, authenticity anchored in place, and experiences that create lasting emotional connection.”
