LUX * Resorts & Hotels goes for the signature of a fourth management contract in China; higher occupancy rate inched up revenue of the hotel.
LUX * Resorts & Hotels signs its fourth hotel management contract in China which is inline with the new strategy of LUX intending to focus on hotel management in international market. Accordingly, LUX posts satisfactory quarter results with EBITDA and revenue climbing by 38% and 8% each respectively upon higher revenue per room of 19%.
The resort which will be branded LUX* comprises of 40 spacious and contemporary guest rooms and 20 villas as well as exciting public areas and amenities and is located within an organic nature farm in the suburbs of Chengdu, 30 minutes from the Chengdu International Airport.
The renowned architectural firm, Bensley Design Studio, has been appointed for the architecture, landscape and interior design for the Resort. The resort is expected to open early 2017. Currently, the Group has signed long term management contracts with third party owners for 611 rooms, all of which will open by end 2016/2017.
The group also released its results for the quarter ending September 30, 2015 and declared that The results of the current quarter are not comparable with those of last year due to the consolidation of 100% of the turnover and expenses of Tamassa hotel as from 1st January 2015 and the disposal of Hotel Le Récif in Reunion Island and the closure of LUX* Belle Mare for two months in 2014.
Sales for the quarter amounted to Rs 1, 04 billion, an increase of 8% compared to 2014 on last year on a like for like basis. The results are satisfactory despite the partial closure of LUX* South Ari Atoll Maldives (25% of its inventory) during the entire quarter.
In addition, the occupancy rates of the Group for the quarter ended 30th September 2015 was 81% up by 7% points on the corresponding quarter last year and the ADR (Average Daily Rate) improved by 9%.
The increase in occupancy and ADR resulted in a strong increase in Rev PAR (Room Revenue per Available Room) of 19%. EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) for the quarter ended 30th September 2015 reached Rs 108 million up by 38% on last year and operating results improved by Rs 23m on a like for like basis.
Net finance costs for the quarter was Rs 52m and the Group’s statutory results for the period under review improved by Rs 50m reducing the loss of Rs 90m to Rs 40m.
“Holders of Convertible ITA Bonds will be entitled to convert all or some of their convertible bonds ITA 31 December 2015. They will have more information on the procedure from November 28, ” highlighted the Group CEO.
Commenting on the tourist arrivals for the quarter ending September 30, 2015, Paul Jones said that arrivals from China continue to rise and that the Chinese market is still number 1 in Maldives.
The increase in tourist arrivals from Europe and the introduction of new flights to serve the destination will benefit the Group hotels in Mauritius.
The reinstatement of direct air services from Mauritius to both Germany and Austria through Lufthansa and Austrian Airlines constitutes a major breakthrough in re-establishing a balanced supply from Europe. Furthermore, the introduction of Turkish Airline to the Mauritius route in mid December 2015 will improve the ability to diversify our markets and thus grow the business overall.
The increase in premium cabin air-seats (First & Business) principally from Emirates also contributes to the strategy of attracting hi-end customers with the potential to increase the spend per guest night.