LUX* Resorts & Hotels sees profits soaring 23% to Rs515 million
LUX* Resorts & Hotels has today published its financial statement for fiscal year 2016-2017. The hospitality group is enjoying a sound financial health, with a 5% increase in turnover and net profits of Rs515 million, which represent a 23% increase over the previous financial year’s results. This results comes amidst LUX*’s plans to unroll a three-year strategy to reinforce its foundations as the most dynamic hotel group of the region.
While the Mauritian tourism market is gaining in strength, LUX* vision goes beyond our shores. The group is planning, through its ‘Vision 2020’ strategy’, to shine brighter in the Indian Ocean and elsewhere.
The board of directors underlines the Group’s ambitious strategy: “We have a two-fold strategy; the core remains the Indian Ocean, where we want to consolidate our assets by renovating our hotels that generate profits, maintaining the required standards and identify new possibilities of management contracts. At the same time, we will further our international expansion beyond the borders of the Indian Ocean. The objective is to increase exponentially the number of management contracts in regions such as South-East Asia, Africa, Europe and the Middle East.”
Paul Jones, CEO of the LUX* Hotels & Resorts Group, says that this strategy is modelled after the development curve that the hospitality group has known since its creation: “We have always relied on strategies that maximise our efficiency. Vision 2020 is built on the same principle and is part of an expansion plan that we can now sustain, not only in the Indian Ocean, but also in the other regions where we operate. I would like to mention here the outstanding work of our 3,225 collaborators who helped us achieve this commendable financial result, and who confirm our ambitions.”
The Group’s turnover this year is Rs5.44 billion, an increase of 5%. Its profits show the same trend, with an increase of 23% to Rs515 millions, compared to Rs419 millions recorded in the previous financial year. This means that earnings per share this year will increase from Rs1.15 to Rs1.25.
This sound performance is also partly due to the sale of Tamassa Hotel to the Grit Group, despite LUX* having had to compensate the shortfall of Rs165million caused by the closure of LUX* South Ari Atoll, in the Maldives, for renovation, and that of LUX* Grand Gaube. The Group has also been able to reduce its debt, from Rs4.5 billion in 2016 to Rs3.8billion as at June 30, 2017.
If the economic climate seems somewhat uncertain, with the decline in the British Pound following Brexit, rising tourist arrivals in all destinations where LUX* currently has its operations reassure the Group as to growth prospects for the next financial year. The reopening of LUX* Grand Gaube next December will also help to achieve a good financial performance.