Revenue rises 14%, gross operating profit grows 41% and average room rates increase 26% despite seasonal slowdown
Nov 04: Summit Hotels & Resorts has reported a 162% year-on-year increase in net operating profit for the first half of FY 2026–27 (April–September 2026), significantly outpacing its 14% revenue growth during the period. Gross operating profit rose 41%, reflecting improved operating efficiencies, stronger revenue management and cost discipline across its leisure hospitality portfolio.
The company also recorded a 26% year-on-year increase in average room rates, while overall occupancy stood at 60%, with 84,067 occupied room nights during the six-month period.
The performance comes despite H1 encompassing the monsoon season, traditionally a challenging operating period for leisure hotels in the Eastern Himalayas and Northeast India, where adverse weather conditions and reduced tourist movement affect travel demand.
The substantial increase in operating profitability relative to revenue growth indicates improved operating margins, supported by more effective pricing strategies and tighter cost management.
Sumit Mitruka, Founder & CEO, Summit Hotels & Resorts, said, “Our first-half performance demonstrates the progress we have made in strengthening the fundamentals of our business. Achieving 162% growth in net operating profit against 14% revenue growth, particularly during a period that includes the monsoon off-season, reflects better revenue management, operating efficiencies and the commitment of our teams.
“We expect the second half to be considerably stronger, supported by the peak leisure travel season, contributions from newly opened hotels and the expansion of our portfolio across different travel segments. While profitability remains essential to building a sustainable business, our larger purpose is to make every traveller's journey better. We want our guests to experience the warmth of home through safe, clean and comfortable stays, fair pricing and genuine care. This is the philosophy we are strengthening across the organisation through The Summit Way, where kindness towards guests and respect for our employees are as important as our commercial achievements.”
Looking ahead, Summit Hotels & Resorts expects stronger business performance in H2 FY 2026–27 (October 2026–March 2027), supported by seasonal demand recovery and the contribution of new properties.
The company is expanding its presence across leisure, spiritual and emerging tourism destinations through three distinct hospitality collections: Signature, focused on premium destination-led stays; Off Beat, targeting lesser-explored leisure destinations; and Mandir, catering to spiritual and pilgrimage tourism.
The expansion includes upcoming properties in Varanasi, Salasar and Rishikesh, alongside new developments in the Eastern Himalayan region. These additions are expected to broaden Summit's geographic reach and diversify its demand base beyond its established leisure markets.
Alongside its expansion and operational priorities, Summit Hotels & Resorts is strengthening its organisational culture through The Summit Way — A Culture of Kindness & Generous Hospitality. Guided by its purpose of Making Every Journey Better, the initiative aims to embed genuine care, fair pricing, employee wellbeing and service consistency across the company's growing portfolio.
With its continued emphasis on revenue optimisation, operational discipline and selective portfolio expansion, Summit Hotels & Resorts aims to sustain profitability improvements while capitalising on stronger travel demand in the second half of the financial year.
