New Mauritius Hotels sees profits rise for the year ended September 30
On a segmental basis, the hotel segment brought in more revenue amounting to Rs 6.53 billion, Rs 687.74 million from the property segment and Rs 1.57 billion from others. (Beach Comber Hotels)
Mauritius-based luxury hotels chain, New Mauritius Hotels (NMH), operating under the Beachcomber brand, reported 11.6 percent rise in pretax profit to Rs 488.85 million for the year ended September 30, 2014 compared to the same period last year when it notched profits before tax of Rs 437.83 million.
However, the financial statement showed an increase in the hospitality major’s revenues of 12.5% to be set at Rs 8.79 billion, compared to Rs 7.81 billion last year.
Mauritius contributed the most to the revenue with Rs 6.73 billion while Morocco and others brought Rs 806,18 million and Rs 1.26 billion respectively as revenue.
On a segmental basis, the hotel segment brought in more revenue amounting to Rs 6.53 billion, Rs 687.74 million from the property segment and Rs 1.57 billion from others.
Furthermore, there has been an increase of 4.1% in the tourist arrivals during the year under review, with the Chinese market accounting for 70% of that growth.
“In spite of the closing of the Royal Palm for major refurbishing works from May to October, NMH hotels in Mauritius performed better than the national average, improving their average occupancy by 10% and revenue per available room (REVPAR) by 5%,” the management noted.
The opening of the Royal Palm Marrakech was on December 26, 2013 and it was fully operational as from November 2014.
The management mentioned “with regard to the property development, the title was transferred to the buyers for 21 of the 55 villas sold and the profit thereon recognised at year end.”
Besides, in Marrakech, the profits of Rs 161 million recognised on the sale of villas together with the fair value gain of Rs 251 million exceeded the net loss of Rs 187 million suffered on the hotel operation and the preliminary expenses of Rs 62 million incurred during the year.
The fair value gain arose on 10 hectares of land originally earmarked for future hotel developments now treated as investment property. The remaining land of some 80 hectares for the residential development is included in inventories at cost.
On the basis that tax losses accruing on Royal Palm Marrakech Hotel will reverse against future profits, a deferred tax credit of some Rs 82 million has been recognised. This has resulted in a net tax credit of Rs 13 million after the offsetting of tax charges of Rs 69 million for the other subsidiaries.
“The results for the first quarter should be lower than those of the previous year considering the prevailing unfavourable exchange rates of the Euro and the Rand, the reopening of Royal Palm Mauritius in mid-October and the drop in tourist arrivals in Marrakech,” the management highlighted.
The financial statement ended with the announcement of an exercise of capital restructuring, which is currently being carried out by the Board, with a view of reducing the Group’s level of indebtedness.
Subsequently, a proposal in that respect will be submitted to the shareholders and the authorities concerned in due course.