IMAGE: Ala Moana Hotel, Honolulu, Hawaii
Mantra Group Limited has reported an underlying net profit after tax of $31.8m for the half year to December 2016, up $4.2m and 15.1% on H1FY2016.
Four hotels were added to the network during the period – three in the Resorts segment – Ala Moana Hotel in Honolulu, Hawaii, Mantra Residences @ Southport Central on the Gold Coast, Mantra The Observatory at Port Macquarie and Peppers Kings Square Hotel, Perth (a management agreement property).
Mantra Group chief executive officer Bob East said H1FY2017 delivered another strong performance with continued growth in revenue and profitability.
“During H1FY2017, the Group performed ahead of the previous corresponding period in revenue, underlying EBITDAI, NPAT and NPATA and is on track to deliver earnings in line with guidance given in August 2016.
“The Group delivered total revenue of $356.2 million, representing a 15.9% increase on H1FY2016.
“This improvement was driven by four new properties acquired during the six month period and was supported by organic  growth as a result of the continued growth in domestic and international travel, an increase in the total number of rooms available across both the Resorts and CBD operating segments, improved occupancy levels, higher average room rates in Resorts and improved efficiencies in key areas of the business,” said East.
“We are thrilled with the performance of the properties we transitioned into the portfolio during the period, in particular the 1,176 room Mantra-branded Ala Moana Hotel in Honolulu Hawaii, which has recorded solid opening results to perform above expectations and contributed $27.2 million in revenue since joining the Group on 26 July 2016.
“The Group is in a good financial position with total assets of $829 million, net assets of $482 million and a strong cash flow.”
East said Mantra Group will continue to surge ahead with H2FY2017 set to see ongoing portfolio growth, characterised by further acquisitions in key Australian and international destinations.
“Announcements have already been made regarding the Group’s operation of new hotels being constructed in Melbourne, Perth, Queenstown, Albury and Wallaroo Shores, with further new projects to be announced,” he said.
“The Group’s balance sheet and cash flow remain strong placing the business in a good position to capitalise on new opportunities as they arise.”
The Group’s new-build Mantra hotel at Sydney Airport is scheduled to join the Group in July 2017, with Mantra Macarthur Hotel, Canberra, and the first two (of three) towers of Brisbane’s luxurious FV by Peppers due to open in August 2017 (subject to customary settlement conditions).
*3 Organic excludes properties added in H1FY2017.