New Mauritius Hotels declares 6.3% rise in Oct-Dec profits
The improved performance of the group is mainly on account of the hotels recording a 5.2% higher average occupancy, which more than compensated the 2% fall in average revenue per guest. (Image: Beachcomber Hotels)
New Mauritius Hotels (NMH), owner of the Beachcomber brand, declared a 6.3% rise in pretax profit for the quarter ended December 31, signaling a turnaround in the Indian Ocean Island’s tourism sector which saw a 3% growth in arrivals during the period.
The group, which owns nine hotels in Mauritius, one in the Seychelles and another in Morocco, posted a pretax profit of Rs 570.55 million for the first quarter, compared to Rs 536.63 million for the corresponding three month period in 2012.
Last year, it reported a 29% fall in full-year pretax profit for the financial year ended 30 September 2013, hit by fewer arrivals from Europe.
Group revenue increased over last year’s by 3.1% to Rs 2,596 million during the quarter under review mainly on account of the hotels recording a 5.2% higher average occupancy, which more than compensated the 2% fall in average revenue per guest due to a less advantageous market mix.
Furthermore, during the quarter ended December 31, the group generated a net cash flow of Rs 281.77 million compared to the Rs 273. 81 million cash flow for the same period last year.
The management observed that the positive trend noted during the first quarter will be at least maintained during the coming months with the increase in air seat capacity brought by Air Mauritius on the China route and by Emirates airline with a daily A380 flight from Dubai.
To conclude, management elaborated on the progress in its expansion plans outside Mauritius, pointing out that the hotel in Marrakech opened with 44 keys on 26 December 2013, as scheduled, with 39 of the 93 villas having already been sold and in process of being delivered.
The profit from the property will be recognized during the current financial year as and when the titles will pass to the buyers, management noted. The hotel is expected to operate at full capacity towards the end of April 2014.
New Mauritius Hotels Ltd
New Mauritius Hotels Ltd, the holding company of Beachcombers Hotels, is an industry pioneer in the hospitality space in Mauritius and is one of the oldest and largest resort chains on the island nation. The hospitality major has eight properties (4 to 5 star) in Mauritius and one (5 star) in Seychelles.
Besides, the company, one of the largest companies listed in Mauritius by market capitalization, has ventured outside the Indian Ocean tourism space with a property in Morocco. Styled the Domaine Royal Palm, the property is located at Marrakech, which is the fourth largest city in the North African nation.
Last year, the company reported a 29% fall in full-year pretax profit for the financial year ended 30 September 2013, hit by fewer arrivals from Europe.
Source: Company Website