Mauritius’ Lux Island Resorts profit soars to Rs 145 mn
A satellite view of the Lux Island Resort at Maldives, which pulled in a stellar performance to contribute to strong financial results for 2012-13 (Source: http://www.overwaterbungalows.net)
Mauritius hotel group Lux Island Resorts saw pretax profits soar to Rs 145 million for the financial year ended June 30 from Rs 14 million in the year-ago period while total revenue saw a year-on-year growth of 2% to hit Rs 3.8 billion.
The Mauritius-based luxury hotel chain, which is also present in Maldives and the Réunion Island, also saw a major improvement in operating margins with operating profits zooming 29% year-on-year to reach Rs 461million.
However, the group’s occupancy for the year was 68%, down 4% compared to last year. But the decline in occupancy rates was offset by the increase in revenue per available room (RevPAR), the hotel industry’s widely used metric. The RevPAR grew by 1% as a result of the improvement in the average daily room rate (ADR) by 5%.
Despite challenging economic conditions in Europe and unfavorable trading conditions in the form of steep air fares for tourists, the board noted that the group achieved strong financial results on the back of a pro-active sales and marketing strategy, outstanding performance of their Maldives property, and enhanced cost efficiency and productivity.
The group noted that the economic environment remains uncertain with no sign of a major economic recovery in the Eurozone albeit a slight improvement recently in the UK. Economic weakness continued throughout the financial year ended June 2013 in their main markets in Europe, with France continuing to suffer economic stagnation and high unemployment.
Tourist arrivals in Mauritius for the financial year were, however, almost at par with last year at 969,952 as lower French footfalls, by around 14%, were compensated by an increase in arrivals from Réunion Island, China, UK, Germany and India.
Accordingly, the forward-looking statement mentioned that the group was confident of exceeding this stellar performance next year as, despite the poor economic indicators in some markets, long term travel trends are positive according to the WTO. Particularly, developing markets such as China and Asia are expected to contribute to a major tourist influx.
The hospitality major posted its results on the Stock Exchange of Mauritius after the market closed. Its shares fell 0.7% to Rs 28.20.
Meanwhile, the board announced that the group’s wholly owned subsidiary, Lux Hospitality Ltd, has signed long term management contracts with Al Zorah Development (Private) Company Ltd, a joint venture between the government of Ajman and Solidere International, a Dubai-based realty firm. The 190-room five star luxury resort hotel will be branded Lux and is slated to be opened in Ajman, UAE by December 2015. The company statement also noted that the group is in an advanced stage of negotiations with a Chinese group to secure management contracts under a joint venture agreement for operating hotels and resorts in China under the Lux brand.
Source: Stock Exchange of Mauritius
Lux Island Resorts
Founded in 1987, LUX* Resorts (known as Naïade Resorts Ltd till end 2011) is a hotel group with properties in Mauritius, the Maldives and Réunion Island. The company was listed in November 2005 and had more than 2,810 shareholders as of 31 December 2009.
LUX* Resorts is a collection of premium hotels in the Indian Ocean offering guests the opportunity to celebrate island life. The five resorts in the LUX* portfolio are LUX* Belle Mare, Mauritius (formerly Beau Rivage), LUX* Le Morne, Mauritius (formerly Les Pavillons), LUX* Grand Gaube, Mauritius (formerly Legends), LUX* Maldives (formerly Diva) and LUX* Ile de la Réunion (formerly Grand Hotel du Lagon).
The remaining properties previously operated by Naïade Resorts Ltd will be part of the Produced by LUX* Resorts portfolio. These resorts will continue to be known as Tamassa, Bel Ombre, Mauritius; Merville Beach, Grand Baie, Mauritius and Hôtel Le Récif, Ile de la Réunion, as well Ile des Deux Cocos, Mauritius, a private paradise island.
Source: Company Website