The Mantra Group's solid profits add to growth

The Mantra Group's solid profits add to growth
By admin


The hotel industry is faring better than aviation with year-end 2014 financial results, as Mantra Group chief executive officer Bob East reports the group delivered total revenue of $454.7 million.

Representing a 5.7% increase on previous year results, East was pleased the group achieved its Prospectus forecast in terms of revenue, profitability and cash flow. 

Reflecting in improved occupancy levels and average room rates as well as a focus by Management on cost control and improved efficiencies in key areas of the business, the results put the group in a good financial position with total assets of $516 million, net assets of $257 million and a strong cash flow.

The group’s CBD properties delivered revenue of $236.2 million, representing a year-on-year increase in revenue of 4.2%. The growth was attributed to factors including improved business sentiment that drove corporate demand while a number of special events held in capital cities contributed to leisure demand in CBD properties resulting in increased occupancy levels.

Resort properties also experienced growth, delivering revenue of $177.3 million, and an increase of 4.3% on last year results.  This sector benefitted from growth in both domestic and international visitors. 

Property growth in the year 2014 totalled 8 hotels, including Mantra Group adding five new hotels to its network – two in Brisbane; one in Melbourne; one in Wollongong and the first Peppers property in Bali, Indonesia.

East said for the coming 2015 financial year, Mantra Group is committed to driving growth and delivering shareholder through continued use of strategic partnerships, improved quality of room inventory via a targeted refurbishment program and improved service delivery and guest experiences across each of the brands.

“We continue to strengthen our platforms and we are taking advantage of leading distribution capabilities and brand appeal.  These factors are also aiding our development team as they continue to sign new properties into the portfolio,” East added.  

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