New Mauritius Hotels sees profits plunge in nine months till June 30
The disappointing results were attributed to the temporary closure of the Royal Palm for a 5-month renovation starting May 12, 2014 and resulting in a loss of around Rs 21 million, while a loss of Rs 48 million was incurred by the Marrakech hotel. (Image: Katerina’s Gift)
New Mauritius Hotels, which manages the Beachcomber resorts in Mauritius, saw pre-tax profits dip by 4.75% to Rs 563.2 million for the nine months ended June 30, 2014 compared to the same period last year when it notched profits before tax of Rs 591.3 million.
However, the interim financial report showed an increase in the hospitality major’s revenues by 5% to be set at Rs 6.60 billion, compared to Rs 6.29 billion last year.
Nevertheless, management noted on the plunge in profits that “the results, over the nine month period, were below what was expected due mainly to lower average revenue per guest.”
The sub-par results were attributed to the temporary closure of the Royal Palm, which will be under renovation for five months starting May 12, 2014, resulting in a loss of around Rs 21 million in all.
Furthermore, a loss of Rs 48 million was incurred by the Marrakech hotel, with the overall operating losses for the group for the quarter ended 30 June 2014 amounting to Rs 110 million compared to Rs 102 million last year.
On the positive side, the group`s average occupancy grew 10% to reach 62.8% while RevPar (revenue per available room) rose by 10% to Rs 6,819, as overall tourist arrivals in Mauritius increased by 10.5% during the quarter ended June, driven mainly by Easter falling in April this year.
Furthermore, with the Royal Palm under renovation and the hotel in Marrakech still not operating at full capacity, operating results for the fourth quarter are expected to be lower than those of last year, noted management.
Finally, management concluded on the note that earnings for the full year though, could be better than last year’s, with the recognition of the profits expected on the transfer of title deeds of the villas sold in Marrakech.
Already, it may be noted that the first two deeds were signed in June 2014 and a profit of some Rs 18 million was recognized as other income in the income statement, given that authorization to pass on the title to the owners of the villas sold in Marrakech has been obtained.
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.
Source: Company Website