Lux* records operating profits of MUR 660mn and an 11% increase in turnover
Hospitality group LUX* published this Wednesday, August 22, its financial results for fiscal year 2017-2018. |
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Lux* records operating profits of MUR 660mn and an 11% increase in turnover
Hospitality group LUX* published this Wednesday, August 22, its financial results for fiscal year 2017-2018. |
Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2018-09-03
In spite of the costly renovation of its flagship hotel in Mauritius, the LUX* Grand Gaube, as well as the two months closure of the LUX* South Ari Atoll in the Maldives, the group recorded operating profits to the tune of MUR 660mn, an increase of 2% compared to last year. As for the turnover, it increased by 11%, which is an encouraging performance for the management. The growth in tourist arrival in Mauritius equally played a major role in producing these results.
MUR 5.8 billion. This is the turnover recorded by LUX* hotel group for financial year 2017-2018. This was achieved despite the fact that two flagship hotels, the LUX* Grand Gaube in Mauritius and the LUX* South Ari Atoll in the Maldives, were closed for part of 2017. The group also recorded a 7% growth in its EBITDA, compared to the previous financial year, to reach MUR 1.2 billion.
The group is looking forward to an upswing in its turnover for financial year 2018-2019, given that all its hotels will be in operation, and that tourist arrivals are increasing.
“This achievement is the outcome of the strategy and the politics adopted for the whole group in order to upgrade not only the financial results but also the quality of service. This is a very encouraging prospect, especially since the hotel industry, namely in Mauritius, will have to face heightened competition in the coming years”, stated Arnaud Lagesse, Chairman of the Board of Directors of LUX* Resorts & Hotels.
During financial year 2017-2018, tourist arrivals climbed by 4%, representing some 1.3 million visitors. Arrivals from Europe, our main market, accounts for more than 760,000 tourists. France and the United Kingdom both record a rise of 4% in arrivals, while Germany records a 14% increase. The Chinese market, with 67,000 tourists over the year, is the only one to have registered a dip. In terms of the other destinations where LUX* operates, a 10% progress can be noted in tourist arrivals for both the Maldives and Reunion Island.
“As all our hotels will be operating during financial year 2018-2019, following the reopening of LUX* Grand Gaube and LUX* South Ari Atoll, and with the current trend of increase in tourist arrivals, we believe that we can achieve an even better performance for fiscal year of 2018-2019. Besides, the first quarter of this new financial year shows a satisfying occupancy rate and if the present conditions are maintained, the group’s profits before-tax for the first quarter should go up in comparison to last year. We also strongly rely on the launch of our new brand before the end of year, which will without a doubt represent a new era for the hotel industry in Mauritius”, says Paul Jones, Chief Executive Officer of the group.
The closure of LUX* Grand Gaube and LUX* South Ari Atoll led to a decrease of MUR 60mn, 13% more than for the previous financial year. However, expenses for year 2017-2018 went down by MUR 6mn to reach MUR 235mn. The group’s after-tax profits for the year, at MUR 414mn, show a decline of MUR 100mn compared to the previous financial year, when the sale of Tamassa hotel brought in MUR 177mn. 2017-2018 results were offset by profits recorded on the takeover of the Le Récif hotel in Reunion Island.
LUX* Bodrum isn’t, however, to be confused with an ascetic retreat. The hip and happening hotel also caters to bikini-clad sunseekers who want nothing more than to sip refreshing cocktails while they lay on their canopy beds and take frequent dips in the warm Aegean waters. The sun-soaked hideaway’s location in the olive-green hills of the Turkish Riviera makes it a magnetic escape. And as a matter of fact, the luxurious resort will be open this summer 2018, from May to October. If you book any room, suite, or villa by June 30th, 2018, you get 40% off your stay between May 1 and October 31, 2018.
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