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MANTRA Group (ASX:MTR) CEO Bob East has praised the performance of the company's new Honolulu Hotel as it posted a 15.1 per cent increase in net profit after tax to $31.8 million for the year to 31 December 2016.
The Gold Coast-based group added three new resorts: Ala Moana Hotel in Honolulu, Hawaii; Mantra Residences @ Southport Central on the Gold Coast; and Mantra The Observatory at Port Macquarie.
In addition, Peppers Kings Square Hotel, Perth, joined the group's central revenue and distribution segment.
The addition of the new properties, as well as organic growth driven by increased domestic and international tourists, boosted revenue 15.9 per cent to $356.2 million, while earnings before interest and tax (EBIT) was up 9.3 per cent to $46.7 million.
"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," says East (pictured).
The company also increased the total number of rooms available across both resorts and CBD operating segments, improved occupancy levels, achieved higher average room rates in resorts and improved efficiencies in key areas of the business.
"The Group is in a good financial position with total assets of $829 million, net assets of $482 million and a strong cash flow," adds East.
Despite these solid numbers, the market is not impressed. At 4pm AEDT this afternoon, Mantra was down 5.46 per cent on the previous day's close, at $2.855 per share.
Mantra will continue opening new properties in the second half of the year, including Club Croc, Airlie Beach, and TRIBE West Perth.
The new-build Mantra hotel at Sydney Airport will join the group in July 2017, while Mantra Macarthur Hotel, Canberra and the first two, of three, towers of Brisbane's FV by Peppers will open in August.
"Announcements have already been made regarding the group's operation of new hotels being constructed in Melbourne, Perth, Queensland, Albury, and Wallaroo Shores, with further new projects to be announced," says East.
"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."
East reaffirmed fully ear guidance of earnings before interest, tax, depreciation, amortisation and impairment reversal (EBITDAI) of $101-107 million, NPAT between $48.5-$52.5 million and NPATA $51-$55.5 million.
"The second half of the financial year is off to a solid start with early H2FY2017 showing great momentum," says East.
The group announced an interim dividend of $0.05 per share.
Business News Australia
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