Lux Group’s Geographic Expansion Plans for 2025 & Beyond

Lux Island Resorts and The Lux Collective, two entities under the Lux Group umbrella, are gearing up for significant geographic expansion in the coming years, with initial steps set to commence as early as next year. By June 30, 2024, Lux Island Resorts boasted a robust financial profile, with all key performance indicators showing positive trends. Its revenue increased from Rs 8.2 billion in the 2022/23 fiscal year to Rs 9.7 billion in 2023/24, marking a growth rate of 18%.

The company reported a pre-tax profit of Rs 1.37 billion and a net profit of Rs 1.1 billion.

The group maintained a healthy debt-to-equity ratio of 26% at the end of the financial year, attributed to strong operational performance and the repayment of loans totaling Rs 804 million.

The three destinations where Lux operates—Mauritius, the Maldives, and La Réunion—performed well during the fiscal year.

Lux’s operations in Mauritius generated an EBITDA of Rs 1.9 billion, accounting for 72% of the group’s overall performance.

Meanwhile, the Maldives and La Réunion contributed EBITDA figures of Rs 618 million and Rs 139 million, respectively.

In a show of gratitude to its shareholders, the group increased its dividend from Rs 2 to Rs 2.50 per share, representing a 25% rise, following its first post-COVID dividend in 2022/23.

Jean-Claude Bega, Chairman of Lux, emphasized the importance of shareholder trust and loyalty, which remained steadfast even during the pandemic and the challenging years that followed.

Looking ahead, the next phase of development for Lux Island Resorts involves increasing its room inventory.

“Based on our healthy balance sheet, we are exploring opportunities to expand our footprint, aiming to grow our operations while mitigating geographic and market risks.

We recognize our heavy reliance on Mauritius and are actively searching for avenues in other territories, particularly focusing on resorts that could be branded as Lux in the Indian Ocean region, Africa, and the Middle East,” Bega stated.

Currently, 68% of Lux Island Resorts’ revenue comes from Mauritius, with 22.4% from the Maldives and 9.6% from La Réunion.

Following the reopening of Lux Belle Mare, all of Lux’s Mauritian resorts are now operational, and occupancy rates have reached exceptional levels in 2023/24.

Désiré Elliah, CEO of Lux Island Resorts, attributed this impressive performance to two main factors: the successful implementation of a yield management strategy in partnership with The Lux Collective, which led to increased room rates, and a higher volume of direct bookings positively impacting pricing.

While operations in the Maldives remain profitable in 2023/24, occupancy rates have experienced a decline over the years due to a rise in competing beach resorts in the region.

Nevertheless, the Maldives welcomed a record 1,964,465 tourists in the 2023/24 financial year, with authorities forecasting over 2 million arrivals in the 2024 calendar year, a figure expected to rise to 2.8 million by 2025.

The anticipated growth in tourism is expected to be bolstered by the complete opening of the new terminal, positively impacting the tourism industry in the future.

In La Réunion, Lux Island Resorts has made significant progress on the leasing of Lux St Gilles, discussed last year.

“We are currently negotiating with the government to secure the land, and we hope to finalize an agreement by the end of December,” stated Elliah.

If all goes as planned, renovations on the hotel could commence next year.

However, the group faced challenges during the 2023/24 fiscal year, notably an oversupply of hotel rooms in the Maldives.

Another ongoing obstacle is the labor shortage, which has affected the Mauritian hotel industry since the pandemic.

“We appreciate the previous government’s initiative to open the labor market to foreigners, but progress in obtaining the necessary permits has been slow.

Nonetheless, it is in our best interest to prioritize the recruitment of Mauritian nationals, as people from all around the world come to Mauritius to experience our hospitality.

We have recently formed a strategic partnership with other hotel groups to attract and nurture local talent in the hospitality sector.

Our campaign, ‘Les Métiers de l’Hôtellerie,’ targets young job seekers, graduates, vocational students, and experienced professionals by raising awareness of the diverse career opportunities in tourism.

This initiative has been a remarkable success so far, but much work still lies ahead to overcome these challenges,” Elliah explained.

Global Expansion for The Lux Collective

The Lux Collective (TLC), a luxury hotel group with an international presence, has unveiled ambitious expansion plans set to kick off in 2025.

New openings are planned for China, Africa, the Middle East, and Southeast Asia.

The boutique hotel brand SALT will make its debut outside Mauritius with two locations in China, while the flagship Lux brand will establish a presence in the Middle East and Southeast Asia, alongside a luxurious safari camp in Botswana.

Leading this highly anticipated new chapter for the group is the newly appointed CEO, Olivier Chavy.

As an innovative player in the industry, Chavy is driving The Lux Collective’s strategy to establish a footprint in emerging travel destinations worldwide.

SALT of Anji in China is scheduled to open in the second quarter of 2025, followed by SALT of Mount Siguniang in 2027, located in a Tibetan village in Sichuan province, at the gateway to the UNESCO World Heritage-listed Mount Siguniang National Park.

The Lux brand is expanding in Africa following the successful launch of Lux Marijani Zanzibar in Tanzania in 2023.

The Lux Collective has signed a management agreement with Diamond Power Pty Ltd to operate and manage the new project, Lux Xinii Mababe in Botswana.

Another first for TLC will occur in the last quarter of 2025 with the opening of Lux Al Bridi and Lux Al Jabal in Sharjah, United Arab Emirates.

The Lux brand will also debut in Asia with the LUXNAM* Phu Quoc, Vietnam, a stunning stilted hotel oasis nestled between lush jungle and idyllic beaches, situated in the Kien Giang Biosphere Reserve, set to open in the second quarter of 2026.

Additionally, the luxury urban hotel Lux Guangzhou will open in the third quarter of 2026 in the Huangpu district, providing a tranquil retreat in the bustling city, complete with breathtaking views, several dining options, and a Lux Me spa.

Olivier Chavy commented, “The group is entering a new phase of global expansion and growth. The Lux Collective is a dynamic and pioneering Mauritian group. We celebrate exceptional service and extraordinary experiences at the heart of our vision.”

Source: Le Mauricien