OUTSTANDING PERFORMANCE OF LUX* RESORTS & HOTELS: TURNOVER OF MORE THAN RS 4 BILLION AND PROFITS OF RS 271 MILLION, I.E. DOUBLE THOSE OF LAST YEAR
“Our continued efforts in the last two years have been rewarded. Our commitment to the search for new markets, the growth of our brand outside of Mauritius, namely in China and the United Arab Emirates, regu-lar training, innovation and resource optimisation have contributed to such a performance. I wish to say a big Thank You to all in the LUX* family!” Paul Jones, CEO.
LUX* Resorts & Hotels, 29 September 2014. LUX* Resorts & Hotels has today published its annual report for the year ending 30 June 2014. The Group’s profits have more than doubled, from Rs 103,324 million in 2012-2013 to Rs 271,262 million this year.
At 30 June 2014, the Group has achieved a turnover of more than Rs 4 billion. “This exceptional performance is the result of our hard work and winning strategies”, says Paul Jones, CEO of the LUX* Resorts & Hotels. Indeed, the Group has increased its presence in China with a new office in Shanghai and the inauguration of a hotel in Lijiang, the first in a series of boutique-hotels which will be opened along the ‘Tea Horse Road’. Furthermore, the opening soon of LUX* Al Zorah, in Ajmaan, United Arab Emirates, shows the determination of the Group to be present in oth-er markets and to specialise in luxury hotels.
Paul Jones says he is pleased with the LUX* Group’s performance. “Despite the difficulties faced by the hotel indus-try in some markets and the continuing growth in the number of hotel rooms available in Mauritius – something which is not compensated by a concomitant increase in the number of tourist arrivals –, we have been able to dou-ble up our profits. This has been made possible by our international strategy and our determined efforts to attract clients. We would not have been able to achieve all this without the unflinching support of our Board and all the staff, who I thank most heartily.”
LUX* Resorts & Hotels announce that Earnings before Interest Tax Depreciation and Amortisation (EBITDA) stand at Rs 917 million at 30 June 2014, or a growth of 18% compared to the same period last year. At the end of the financial year, room occupancy was 72%, representing an increase of 4% compared to the corresponding period in 2013. The Average Daily Rate (ADR) has increased by 7%. This growth has led to an increase of Room Revenue per Available Room (REV PAR) of 12%.
Total revenue for 2013-2014 has reached Rs 4,2 billion, a growth of 12% compared to the same period last year. Operating Profit has increased from Rs 461 million to Rs 589 million, i.e. a rise of 28%. The Group has generated Rs 618 million, which represents a growth of 26 % over the corresponding period last year. There has also been a reduction of financial costs from Rs 303 million in 2013 to Rs 259 million at 30 June 2014. The Group points out that real interest rate this year is around 5%. It was 7% in 2013.
For the first time since its launch, the Tamassa Hotel, an associate partner in the consolidated accounts of LUX* Island Resorts Ltd, has achieved positive results. LUX* will collect Rs 263,000 against a loss last year of Rs 12 mil-lion.
Total debts excluding banks’ overdrafts amount to 4.4 billion, compared to Rs 5 billion last year. This equates to a net reduction of Rs 600 million. The gearing for the LUX* Group has dropped from 57% in 2013 to 50% this year as a result of loan reimbursements and the revaluation surplus seen as equity.
LUX* points out that the debt ratio could be further reduced to 42% if Convertible Bonds are exchanged for equity. Provisions for interest payments (EBITDA/ finance charges) amounting to 2.5 last year have significantly improved this year to a healthy 3.5 ratio.