Constance Hotels Report Positive Mid-Year 2024 Performance

Constance Hotels Group has reported a generally positive performance for the first half of 2024, despite facing some challenges. The group’s overall occupancy rate stood at 73.3%, a decline from 79.9% in June 2023.

However, the average room rates rose, leading to significant improvements in Revenue Per Available Room (RevPAR) across all its establishments.

According to the management, “Actions taken regarding the newly managed hotels in Rodrigues have translated into encouraging operational performances, and we remain confident of their growing contributions in the future.”

The group’s combined performance across owned and managed hotels, despite the addition of new resorts, remained satisfactory.

RevPAR was recorded at Rs 14,370 compared to Rs 14,909 in June 2023, while Total Revenue Per Available Room (TRevPAR) fell from Rs 24,604 to Rs 23,456.

Looking at the group’s performance in Mauritius along with its new operations in Rodrigues, revenue for the first half of 2024 reached Rs 3.1 billion, up from Rs 2.9 billion in June 2023.

The net profit for the first half of 2024 amounted to Rs 274 million, down from Rs 297 million in June 2023, after accounting for tax expenses of Rs 66 million, compared to Rs 45 million the previous year.

Despite some operational cost increases, effective cost management allowed the group to achieve an EBITDA of Rs 1 billion, an improvement from Rs 960 million in June 2023.

However, financial expenses rose to Rs 398 million from Rs 377 million last year, primarily due to additional debt incurred for the main lease acquisition in the Maldives and leasing debts from Rodrigues.

The results come at a time when the overall number of arrivals in the three main destinations served by the group has increased compared to 2023, with arrivals up by 4.91% in Mauritius, 9.4% in the Maldives, and 2.4% in Seychelles. In the second quarter of 2024, tourist arrivals showed modest growth, with increases of 1.9% in Mauritius and 1.4% in the Maldives.

However, Seychelles experienced a decline of 6.9% in tourist arrivals due to ongoing geopolitical conflicts in the Middle East.

The group reported earnings from its associate companies, mainly from Seychelles, amounting to Rs 105 million, an increase from Rs 91 million in June 2023.

The tourism industry continued to face significant challenges amidst geopolitical tensions in Europe and the Middle East, coupled with a potential global economic slowdown, which could affect destinations such as Mauritius, the Maldives, and Seychelles.

Despite these challenges, Mauritius operations appear promising, with expectations that performance will align with last year’s results.

Conversely, the Maldives operations face difficulties due to intense competition and delays in the opening of the new airport, impacting capacity expansion.

Nonetheless, Constance Hotels has implemented strategic sales and marketing initiatives aimed at its key source markets, which have resulted in improved bookings.

While Seychelles continues to perform well despite a slight slowdown in booking rates, the group emphasizes that standards are being raised in Rodrigues, setting the stage for stronger performance for the remainder of the year.

If forward bookings maintain their current trend, Constance Hotels anticipates a satisfactory performance comparable to that achieved in 2023. However, the implications of the recently announced wage increases are currently being assessed.

Source: Le Mauricien