Mauritius’ LUX* Island Resorts sees profit soar to Rs 367 mn in 9 months to March 2015
Mauritius hospitality major LUX* Island Resorts registered a 15% rise in revenues to Rs 3.5 billion upon a higher occupancy rate, which led in turn to a profit growth of 15.64% to Rs 367 million. (Image: wanderforth.com )
Mauritius hospitality group LUX* Island Resorts saw profits soar 15.64% to Rs 367.5 million for the nine months ended 31 March 2015 from Rs 317.8 million in the corresponding period in 2014, while total revenue saw a growth of 15.3% to hit Rs 3.5 billion.
Despite ongoing challenges in some markets coupled with a weak Euro, the group delivered commendable results with both turnover and EBITDA improving significantly.
The Mauritius-based luxury hotel chain, which is also present in Maldives and Réunion Island, also saw major improvements in operating margins with operating profits zooming 13.6% over 2014 to reach Rs 645.6 million.
Moreover, the group’s occupancy rate has stood at 79% since the beginning of 2015, up 6% over last year and the Group’s RevPAR (Room Revenue per Available Room) increased by 4%.
A segmental analysis shows that Mauritius is the major revenue generating country with Rs 1.9 billion in revenues and a profit level of Rs 376.1 million, followed by Maldives which displayed a turnover of Rs 1.3 billion and a profit level of Rs 272.8 million.
The net finance cost of the group stood at Rs 201.2 million, representing a 2.1% drop compared to the same period last year as a result of reduced borrowings and the conversion of 95% of convertible bonds into equity in December 2014.
The gearing of the Group stood at 41% at 31st March 2015 compared to 50% on 30 June 2014 which is below the industry average.
Tourist arrivals to Mauritius increased during the period under review, with a rise in arrivals from Europe. The Chinese market continues to perform well and, in the Maldives, the number of visitors was favourable.
LUX* has adopted the strategy of focusing on managing resorts and hotels rather than owning the assets, and in line with this strategy, the group disposed of 100% of its shareholding in SAS Le Recif, which owns and operates hotel Le Recif in Reunion Island on the 1st April 2015.
Moreover, LUX* Hospitality Ltd (LHL) a subsidiary of LUX*, signed with the buyer of Le Recif a long term Management Services Agreement and a Technical Services Agreement in connection with the design, development and management of a five star luxury resort.
Finally, the Board has approved an amount of USD 25m for the renovation of LUX* Maldives which will be undertaken in two phase.Future outlook also looks encouraging, given the increase in arrivals particularly from Europe, and the double digit growth in the number of tourists from China.