Strong results and continued expansion for Lux* Resorts & Hotels
LUX* Resorts & Hotels continues its international expansion. |
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Strong results and continued expansion for Lux* Resorts & Hotels
LUX* Resorts & Hotels continues its international expansion. |
Category: Worldwide - Industry economy
- Hotel projects
This is a press release selected by our editorial committee and published online for free on 2015-02-18
The group whose turnover reached Rs 2.2 bn for the six months ending 31st December 2014, recently signed its second hotel management and technical services agreement for the operation of a five star luxury resort on the Dianshan Lake, located close to Shanghai in The People’s Republic of China. This resort will comprise 60 keys and the opening date is expected by end of 2016. LUX* Resorts & Hotels has also entered into an exclusive management and advisory agreement with Sanghvi Hospitality Ltd, a company incorporated in India, for the purpose of managing and operating five star hotels in India and Sri Lanka and any other country in the region to be agreed upon between both parties.
Regarding its expansion in China, the group announced that the second property which will be operated under the banner of the LUX* Tea Horse Road is under construction in Benzilan, located on the Yangtze River in the Yunnan Province. This property of 30 keys should open in the last quarter of 2015. According to Paul Jones, CEO of LUX* Resorts & Hotels, “These new managements contracts are the result of our international expansion strategy. In addition, India and particularly Sri Lanka are two growing destinations and the partnership with Sanghvi group will facilitate the entry of LUX* brand in these two popular destinations. Furthermore, we are expecting the completion of LUX* Al Zorah, comprising 200 keys, which is currently under construction in the UAE for the last quarter of 2016.”
In terms of key financial indicators, the Board of Directors underlines that despite the ongoing challenges in some markets coupled with the weak Euro, LUX* Resorts & Hotels delivered good results for the quarter under review with turnover and EBITDA improving by 10% and 4% respectively. The Group occupancy for the quarter rose by 5% points to reach 80% whilst ADR (Average Daily Rate) increased by 3%. The increase in occupancy and ADR, improved the Group’s RevPAR (Room Revenue per Available Room) by 10%. Total revenue for the quarter under review reached Rs 1.4bn, up by 10%, on the corresponding quarter last year whilst EBITDA (Earnings before Interest Tax Depreciation and Amortisation) amounted to Rs 418m compared to Rs 400m last year. Operating profit improved by 3% from Rs 320m to Rs 330m mainly due to the weakening of the Euro.
LUX* Resorts & Hotels also announced that its net finance costs decreased by Rs 4m as a result of reduced borrowings. The net attributable profit for the quarter amounted to Rs 234m compared to Rs 229m last year while the turnover increased by 10%. Furthermore, for the six months ending on the 31st of December 2014, the occupancy rate for LUX* Hotels & Resorts in Mauritius, Reunion island and Maldives increased by 6%, the ADR by 6% and Rev Par by 15% compared to 2013. Paul Jones: “I would like to congratulate all members of my team and thank them for their continued passion, hard work and great team spirit.”
In addition, the group welcomes the recent introduction of the Air Mauritius direct service to Chengdu, in the Sichuan Province of China. “Chengdu and the nearby Chongqing are two huge landlocked tier 1 cities in the PRC famous for their passion for travelling, I am confident that this region of the PRC holds massive potential for providing meaningful growth to our tourist arrivals in Mauritius “ concluded Paul Jones.
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