The Leela (NSE: THELEELA) signs Jaisalmer resort to complete Rajasthan luxury triangle and expand India-wide footprint

The Leela Palaces, Hotels and Resorts has entered into a strategic agreement with Godwin Palace and Hotels Private Limited to launch The Leela Jaisalmer, A Luxury Desert Resort and Spa. The upcoming 80-key property will be situated across 30 acres in the heart of Rajasthan’s Thar Desert and is expected to open in 2026. This marks the first desert property in The Leela’s expanding portfolio and strengthens its presence across India’s top cultural circuits, particularly in Rajasthan where it already operates luxury destinations in Udaipur and Jaipur.

The announcement, filed under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, was shared by Leela Palaces Hotels and Resorts Limited on November 6, 2025. The Brookfield-backed hospitality brand has been accelerating its expansion through a mix of owned and managed models, and the Jaisalmer signing continues this asset-light growth trajectory in high-demand tourism zones. The property will be positioned as a luxury desert retreat, combining regal design and experiential hospitality with proximity to iconic heritage locations such as the Jaisalmer Fort, a UNESCO World Heritage Site.

As Rajasthan continues to attract inbound tourism and affluent domestic travellers, The Leela’s new destination is expected to cater to premium segments seeking luxury experiences rooted in cultural storytelling.

What makes Jaisalmer an attractive destination for The Leela’s luxury strategy?

Jaisalmer has long been viewed as a crown jewel of India’s desert tourism landscape, offering travellers a rich mix of heritage, architecture, and natural beauty. The city’s golden sandstone architecture, historic forts, and desert safaris have drawn global visitors for decades. Yet, compared to Jaipur or Udaipur, Jaisalmer has had limited ultra-luxury infrastructure, making it a logical next frontier for curated hospitality expansion.

For The Leela Palaces, Hotels and Resorts, this resort is not just another hotel but a flagship entry into a unique ecosystem that complements its Rajasthan circuit. With the upcoming resort located just a short distance from Jaisalmer Airport and connected to Jodhpur by road, accessibility for high-spend domestic and international travellers has significantly improved in recent years. This connectivity, combined with an architectural canvas that allows for immersive desert experiences, makes Jaisalmer a strategic inflection point for The Leela’s brand narrative.

The property will feature elegantly designed rooms and tented villas, a man-made lake, an expansive spa, and a dedicated kids’ club, among other amenities. It will also include a pillarless ballroom and open-air courtyards aimed at the growing destination wedding and corporate events market. In positioning The Leela Jaisalmer as a desert sanctuary, the brand is tapping into an emerging segment of leisure travellers looking for slow, culturally rooted luxury away from urban congestion.

How does this tie into The Leela’s broader India and international expansion plan?

The signing of The Leela Jaisalmer is part of a larger growth strategy that aims to scale the brand from its current portfolio of 13 operating properties to 23 properties with over 5,000 keys within the next three years. This expansion includes hotels in Agra, Ayodhya, Bandhavgarh, Mumbai, Ranthambore, Sikkim, Srinagar, and an international property in Dubai.

Unlike conventional hospitality chains, The Leela Palaces, Hotels and Resorts continues to focus primarily on leisure-led, culturally rich markets. Its institutional ownership under Brookfield Asset Management allows for longer-term planning and greater flexibility in capital deployment. The decision to grow via management contracts enables faster scaling without heavy capital burden, allowing The Leela to preserve its high-touch service model while expanding presence in tourism hotspots.

This approach was underscored by Anuraag Bhatnagar, Whole-time Director and Chief Executive Officer of Leela Palaces Hotels and Resorts Limited, who said that Jaisalmer represents a strategic extension into a destination that aligns with The Leela’s commitment to delivering meaningful and transformative experiences. He emphasized that as both domestic and international travel continue to grow, the brand is poised to meet rising demand through experiential and location-driven properties.

The brand’s track record includes being ranked the number one global hospitality brand by Travel + Leisure World’s Best Awards in 2020 and 2021, and among the top three in 2023 and 2024. The company’s decision to deepen its portfolio across northern India reflects both consumer demand and investor conviction in high-margin, luxury-focused hospitality.

What role is Godwin Palace and Hotels Private Limited playing in this venture?

Godwin Palace and Hotels Private Limited is the local partner that will own the upcoming Jaisalmer property. The collaboration brings together The Leela’s operational excellence and Godwin’s local asset base. Directors Chiranjeev Singh Bajwa and Tanveer Singh Bajwa of Godwin Palace and Hotels Private Limited emphasized the shared goal of reimagining desert hospitality in India. They described the partnership as a commitment to showcasing India’s heritage through experiential offerings rooted in local context and global luxury standards.

The asset-light model adopted here mirrors a broader trend in Indian hospitality where domestic hotel owners increasingly turn to internationally respected management brands to enhance property value and marketability. By partnering with an award-winning brand like The Leela, Godwin Palace and Hotels Private Limited gains access to a premium customer base, globally benchmarked operating systems, and a marketing ecosystem that can accelerate brand awareness beyond Rajasthan.

This is not the first time The Leela has entered into such arrangements. Its Jaipur and Udaipur properties have also followed similar partnership frameworks, allowing for architectural distinctiveness, location customization, and brand synergy to coexist effectively.

How is institutional sentiment shaping The Leela’s growth story?

Listed on both the Bombay Stock Exchange (Scrip Code: 544408) and the National Stock Exchange (Symbol: THELEELA), Leela Palaces Hotels and Resorts Limited remains a closely watched hospitality stock. While the group does not provide quarterly investor updates at the level of some larger hospitality majors, its press announcements and strategic disclosures offer a window into its trajectory.

Institutional sentiment surrounding India’s hospitality sector has improved considerably in 2025, particularly in segments such as luxury leisure, destination weddings, and heritage travel. This shift has been driven by pent-up travel demand, stronger international airlift to tier-II cities, and growing affluence among India’s middle and upper-middle class.

Analysts tracking hospitality have indicated that branded luxury properties in cultural circuits tend to enjoy higher average daily rates, stronger customer loyalty, and better asset yield over time. With The Leela now expanding into less saturated but high-value destinations like Jaisalmer, investor confidence may rise around its capacity to deliver premium margins without extensive capital risk.

While foreign institutional investors and domestic institutional investors continue to show interest in hotel real estate investment trusts and large hospitality chains, boutique brands with strong positioning like The Leela are also gaining visibility in portfolio diversification strategies. The group’s disciplined pipeline development, combined with award-winning service metrics, reinforces its positioning as a long-term luxury play.

How will The Leela Jaisalmer’s design, guest experience programming, and hospitality model evolve as the resort prepares for its 2026 opening?

Over the next 12 to 18 months, The Leela Palaces, Hotels and Resorts is expected to begin integration work on brand programming at the Jaisalmer property. This includes rollout of wellness initiatives, sustainability practices, curated culinary experiences, and architectural refinement consistent with the brand’s heritage-led identity.

Once launched in 2026, The Leela Jaisalmer is expected to serve not only as a luxury resort but as an anchor for itinerary-driven tourism across the western Rajasthan belt. With enhanced rail, road, and air connectivity, Jaisalmer is also well positioned to attract overseas groups, FIT travellers, and event organizers looking for a distinctive blend of history and high-end service.

The Leela’s positioning at the intersection of culture and luxury is likely to shape how the desert resort is marketed globally. Whether for a wedding, wellness retreat, or cultural expedition, The Leela Jaisalmer is designed to offer an evocative, immersive, and regal experience rooted in Rajasthan’s timeless appeal.

What are the key takeaways from The Leela’s Jaisalmer luxury resort announcement?

• The Leela Palaces, Hotels and Resorts has signed a management agreement with Godwin Palace and Hotels Private Limited to develop The Leela Jaisalmer, a luxury desert resort and spa in Rajasthan’s Thar Desert.
• The upcoming resort will span 30 acres and feature 80 keys including tented villas, a wellness spa, a man-made lake, ballrooms, and open courtyards designed to attract high-end experiential and wedding tourism.
• This is the hospitality brand’s first foray into desert tourism, completing its luxury circuit in Rajasthan alongside existing properties in Jaipur and Udaipur.
• The resort is strategically located near Jaisalmer Fort, a UNESCO World Heritage Site, and is expected to open in 2026, with full integration of The Leela’s brand programming and service standards.
• The deal marks a continued push toward an asset-light expansion model as part of The Leela’s goal to scale to 23 properties and more than 5,000 keys across India and Dubai over the next three years.
• Backed by Brookfield Asset Management, The Leela is expanding its institutional appeal by entering culturally resonant, high-margin locations that are underserved in ultra-luxury offerings.
• Institutional sentiment remains positive around asset-light hospitality strategies in India, with investors showing strong interest in high-yield, experience-led destinations like Jaisalmer.
• Godwin Palace and Hotels Private Limited will own the resort, while The Leela will handle branding and operations, leveraging its global luxury hospitality recognition.
• This expansion highlights the growing strategic importance of secondary tourism hubs in India’s premium hospitality landscape, especially in the context of destination weddings and heritage travel.