Mantra sees 9% rise in earnings

Mantra sees 9% rise in earnings
By admin


Up for sale hotel group Mantra reported a 9% rise in earnings to $60.6 million in the 2011/12 financial year despite “challenges across the industry”.

Mining, leisure and the meetings and incentives market all contributed to the performance, the company said.

Overall room revenue climbed 6.2% with CBD and resort properties generating revPAR growth of 5.8% and 5.2% respectively.

Average daily rates increased 1.7%.

Mantra chief executive Bob East said the result surpassed targets set for EBITDA (earning before interest, tax, depreciation and amortisation) despite a reduction in the group’s total numbers of beds.

“Mantra Group enters the new financial year in a strong position following what has been a year of great growth for the company,” East said. “We reached beyond our targeted EBITDA, added four new properties to our Peppers brand and increased revenue despite reducing our room stock following strategic divestments to strengthen brand equity.” 

The hotel group said Tropical North Queensland saw strong demand from China and Asia with a 7% increase in revenue. Initiatives to cater for Asian tourists in Cairns and Palm Cove have “proved popular”, Mantra said.

Room revenue on the Gold Coast climbed 2% on the back of more domestic leisure nights and conference business while Sunshine Coast rates went up 4%.

East said such growth was amid “challenges experienced across the industry in the face of a strong Australian dollar”.

“We also effectively capitalised on activity from the mining and resources sector, a resurgence in the MICE sector and an increasingly strong Chinese and Asian inbound market to contribute to our overall growth,” he said.

Perth and Brisbane benefited from the mining boom, with rises in room revenue of 32% and 11% respectively.

Occupancy rates in the WA capital climbed 13% and rates increased 12%.

In Brisbane, occupancy rose 13% with rates up 3.5%.

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Email the Travel Weekly team at traveldesk@travelweekly.com.au

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