India’s Sterling Holiday Resorts Sets New Hospitality Benchmark With Record Revenue, Profit And Resort Expansion

Written By: Ricky Acharjee

Ricky Acharjee

I am travel writer at Travel And Tour World with 3 years of experience covering global tourism, aviation, hospitality, and destination news. Dedicated to accurate reporting and compelling storytelling, Ricky explores the trends, innovations, and developments shaping the international travel industry while delivering engaging insights for travellers and industry professionals.

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August 5, 2026 11:47 PM

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Sterling Holiday Resorts Limited (SHRL), one of India’s leading leisure hospitality companies, has delivered its strongest-ever quarterly performance in the first quarter of financial year 2027, marking a major milestone in its growth journey. The company reported record achievements across revenue, EBITDA, Profit Before Tax (PBT) and Operating Free Cash Flow, reflecting the success of its transformation into a scalable, profitable and resilient hospitality platform.

The latest performance highlights Sterling’s growing strength in India’s competitive travel and tourism market, where demand for leisure experiences, resort holidays and destination-based travel continues to expand. The company’s improved financial position, operational efficiency and strong customer engagement have helped it create a sustainable growth model while preparing for further expansion.

Sterling Records Strong Financial Growth With Revenue Rising 21% In Q1 FY27

Sterling Holiday Resorts recorded a significant rise in financial performance during Q1 FY27, with total revenue increasing 21% year-on-year to ₹1.7 billion. The strong growth reflects higher demand across its resort network, improved business operations and effective execution of its commercial strategies.

The company’s EBITDA also grew 21% year-on-year, crossing ₹620 million during the quarter. Sterling maintained an impressive EBITDA margin of 37%, demonstrating strong profitability and operational discipline. The company’s ability to protect margins while expanding its business highlights the strength of its business model and efficient cost management practices.

Profit Before Tax showed even stronger growth momentum, increasing 30% compared with the same period last year. The company also expanded its PBT margin by 200 basis points, indicating improved financial efficiency and better utilisation of resources.

Meanwhile, Operating Free Cash Flow increased by 30%, showcasing stronger cash generation capabilities. The improvement was supported by better operating leverage, disciplined expense management and continued focus on enhancing business productivity.

Debt-Free Balance Sheet Strengthens Sterling’s Expansion Plans

Sterling continues to maintain a completely debt-free balance sheet, supported by cash reserves exceeding ₹3.7 billion. This strong financial foundation provides the company with significant flexibility to invest in future growth opportunities.

The company plans to utilise its financial strength to expand its resort portfolio, strengthen technology infrastructure and enhance guest experiences. A healthy cash position also allows Sterling to pursue growth opportunities while maintaining financial discipline and operational stability.

The company’s asset-light expansion strategy remains a key pillar of its growth approach. By balancing owned, leased and managed properties, Sterling aims to increase its presence across India while ensuring efficient capital allocation and sustainable long-term expansion.

Higher Occupancy And Premium Pricing Drive Hospitality Performance

Sterling’s operational performance continued to improve during the quarter, with occupancy levels rising by 700 basis points to 77%. This growth was achieved despite a considerable increase in available room inventory, demonstrating strong demand for Sterling’s holiday offerings.

The company also achieved its highest-ever Average Room Rate (ARR) of ₹7,809 during the quarter. The increase in room pricing reflects stronger brand value, effective revenue management and rising customer preference for quality leisure experiences.

Total Revenue Per Available Room (TRevPAR) increased by 20%, further strengthening Sterling’s operational performance. The growth was supported by successful commercial strategies, improved customer engagement and increasing demand for premium resort experiences.

Sterling’s room revenue grew 29% during the quarter, while Food and Beverage revenue increased 15%. The performance indicates that travellers continue to spend more on complete resort experiences, including accommodation, dining and recreational offerings.

The company noted that customer demand continued to remain ahead of supply growth, creating a favourable environment for future expansion.

Sterling Expands Resort Network With More Than 65 Destinations Across India

Sterling Holiday Resorts has established a strong presence in India’s leisure hospitality market, currently operating 78 resorts with nearly 3,800 rooms across more than 65 destinations.

The company has emerged as one of the fastest-growing listed hospitality companies in India, supported by its wide destination portfolio and focus on experiential holidays. Sterling’s resorts cater to travellers seeking family vacations, wellness retreats, adventure experiences and destination escapes.

The company currently has a strong development pipeline featuring more than 35 upcoming resorts and over 2,000 additional rooms. This expansion plan will further strengthen Sterling’s footprint across emerging and established tourism destinations.

Through its balanced growth strategy, the company aims to capture rising domestic travel demand while creating memorable holiday experiences for customers across different market segments.

Award-Winning Guest Experiences Strengthen Sterling’s Brand Reputation

Customer satisfaction remains one of Sterling’s strongest competitive advantages. Sterling Kanha received Tripadvisor’s prestigious “Best of the Best” Award for the fourth consecutive year, placing it among the top 1% of resorts globally.

This achievement highlights Sterling’s consistent commitment to delivering exceptional hospitality standards and memorable guest experiences. The recognition also positions Sterling among the few resort brands worldwide to achieve this honour for four consecutive years.

In addition, 28 Sterling resorts received Tripadvisor Travellers’ Choice Awards, reflecting strong customer appreciation and positive guest feedback. Among these, 12 resorts achieved the recognition for three consecutive years, demonstrating consistency in service quality and customer satisfaction.

Sterling Strengthens Position In India’s Growing Leisure Hospitality Market

With record-breaking financial results, increasing resort demand, a strong expansion pipeline and growing customer loyalty, Sterling Holiday Resorts continues to strengthen its position in India’s evolving hospitality sector.

The company’s Q1 FY27 performance reflects the impact of its strategic transformation, operational excellence and customer-focused approach. As domestic tourism continues to expand and travellers increasingly seek unique resort experiences, Sterling is positioned to play a major role in shaping India’s future leisure hospitality landscape.

Commenting on the performance, 
Mr. Vikram Lalvani, Managing Director & CEO, Sterling Holiday Resorts Limited, said:

“Q1 FY27 represents a defining milestone in Sterling’s journey. While it has been our best quarter ever across every key operating and financial metric, its significance extends well beyond the numbers. It reflects the emergence of a business that has fundamentally transformed itself into a scalable, profitable and resilient hospitality platform.

Virtually every growth engine delivered during the quarter. Our balance sheet has never been stronger, our development pipeline provides excellent visibility, and we continue to invest in technology, Artificial Intelligence and leadership as strategic enablers for the next phase of growth. Over the last five years, Sterling has built the foundations of a high-quality hospitality company. Over the next five years, our ambition is to compound that transformation into consistent growth, stronger returns on capital, increasing cash generation and sustained stakeholder value creation. We firmly believe Sterling’s journey has only just begun.”