Sterling managed resorts generated 23% of Q2 FY27 revenue

Sterling Holiday Resorts reported Rs 38.7 crore of managed-resort revenue in Q2 FY27, up 70% year on year and representing 23% of enterprise revenue, as its leisure platform reached 83 resorts and set an FY27 target of 99. Total Q2 revenue was a record Rs 125.9 crore, up 21% year on year.

How much revenue did Sterling generate from managed resorts?

Sterling generated Rs 38.7 crore from managed resorts in Q2 FY27, a 70% year-on-year increase that management said represented 23% of enterprise revenue. The presentation identifies managed properties as the asset-light element of the expansion strategy because management contracts can add resorts with lower capital intensity than owned or leased assets.

The resort business generated Rs 99.1 crore in Q2 FY27, rising 23% year on year, while total revenue reached Rs 125.9 crore, up 21%. Management described Q2 as seasonally Sterling’s weakest quarter and said resort revenue drove overall growth despite that seasonal pattern. Managed-resort revenue therefore grew faster than both resort revenue and total revenue during the period.

Sterling reports the Rs 38.7 crore managed-resort revenue figure and the 23% enterprise-revenue contribution as operating disclosures. The presentation does not provide a reconciliation between the contribution metric and the total-revenue figure on the same page. The disclosed measures nonetheless show that managed resorts were a growing component of the leisure platform in Q2 FY27.

How quickly is Sterling expanding its resort network?

Sterling had 83 resorts and 4,015 rooms as of September 2026, up 20% and 15%, respectively, from Q2 FY26. The network comprised 77 Sterling resorts and six Nature Trails properties across 67 locations, spanning destinations including Srinagar, Mussoorie, Puri, Goa and Alleppey.

Sterling opened seven resorts in Q2 FY27, its highest number of openings in any quarter, and secured six additional sign-ups. The quarter took the portfolio beyond 4,000 keys. Properties shown in the presentation include locations in Jagdalpur, Sattal, Agra, Varanasi, Jim Corbett, Tadoba and Jawai, illustrating the company’s stated circuit-expansion approach.

Management’s FY27 plan is to increase the network from 83 to 99 resorts, from 67 to 80 locations, and from 4,015 to 5,100 rooms. That plan implies additions of 16 resorts, 13 locations and 1,085 rooms from the September 2026 base. The source does not specify the opening dates or ownership model for every planned addition.

What does Sterling’s asset-light property mix show?

Sterling’s managed properties represented 53% of the resort mix, compared with 47% for owned and leased properties. By rooms, the relationship was reversed: managed properties accounted for 40% of rooms, while owned and leased properties accounted for 60%. The managed estate therefore had more individual resorts but fewer rooms than the owned-and-leased estate.

This mix is consistent with management’s emphasis on managed-resort revenue, which rose 70% year on year in Q2 FY27. Sterling describes management contracts as a way to expand its portfolio with lower capital intensity, while the 47% owned-and-leased resort share remains part of the network. The presentation does not disclose capital expenditure, property-level economics or contract terms for the managed estate.

Nature Trails also added to the management-contract pipeline during Q2 FY27 by signing one new property that was scheduled to become operational in Q3. Nature Trails revenue grew 10% year on year in the quarter. Corporate business grew 5%, while the school and college segment grew 12%, according to the presentation.

Are Sterling’s operating metrics improving?

Sterling reported 52% resort occupancy in Q2 FY27, compared with 49% in the prior-year quarter, an increase of 300 basis points. A basis point is one hundredth of a percentage point. Room nights sold rose 23% to 1.83 lakh, exceeding the 16% increase in available room nights to 3.54 lakh.

Average room rate, or ARR, increased 9% year on year to Rs 6,484 in Q2 FY27. Total revenue per available room, or RevPAR, rose 12%, supported by room and food-and-beverage revenue, according to management. The higher RevPAR growth relative to ARR reflected the reported increase in occupancy during the same quarter.

Sterling also reported an 80% guest ratio in Q2 FY27, versus 75% a year earlier. Its TripAdvisor average rating was 4.61, up from 4.57 in FY 2024-25, while 85% of resorts were rated 4.5 or higher. The presentation said 30 resorts and 11 restaurants received TripAdvisor recognition for excellence.

What financial position supports Sterling’s expansion plan?

Sterling reported cash reserves of Rs 380.8 crore, up 12% quarter on quarter, and said it remained zero debt and net cash positive in Q2 FY27. The company also reported 27 consecutive profitable quarters. These disclosures accompany a plan to add 16 resorts and 1,085 rooms by FY27.

The operating base expanded while revenue increased: resort revenue was Rs 99.1 crore, up 23% year on year, and room nights sold were up 23% in Q2 FY27. Sterling’s presentation does not state an FY27 revenue target, expected capital spending, or the timing of all planned openings. It also does not quantify the revenue contribution expected from the six additional sign-ups secured in Q2.

Nature Trails’ stated next initiatives are to strengthen corporate, meetings, incentives, conferences and exhibitions, school, and institutional group segments. The latest disclosed performance showed 5% corporate growth and 12% school-and-college growth in Q2 FY27, while its newly signed managed property was scheduled to begin operations in Q3.

Conclusion

Sterling’s Q2 FY27 disclosures show managed resorts becoming a larger part of the leisure platform alongside higher occupancy, room rates and network scale. Managed-resort revenue reached Rs 38.7 crore and 23% of enterprise revenue, while the 83-resort platform delivered record Q2 revenue of Rs 125.9 crore and maintained a mix in which managed assets represented 53% of resorts.

The next disclosed milestones are the Nature Trails managed-property opening scheduled for Q3 and the FY27 targets of 99 resorts, 80 locations and 5,100 rooms. Progress will depend on converting the six additional sign-ups into operating properties and on whether managed-resort revenue continues to outpace the 21% total-revenue growth reported in Q2 FY27.