Mantra Group Posts $63 Million Profit

Australia’s Mantra Group has posted a $63 million EBITDA profit for the financial year 2012/13, off the back of significant rate and occupancy growth in the leisure travel sector, consistent CBD hotel performance, and a growing network of properties in the Asia Pacific.

The group has been actively acquiring new properties in the Asia Pacific region with over 1,000 rooms joining the network this financial year. Annual earnings have grown by over $16 million over the past four years.

The 2012/13 result represents a 5% increase on profit year-on-year and can largely be attributed to the group’s Queensland leisure properties with North Queensland region in particular posting a profit uplift of 38%. The region experienced a significant increase in average daily rate (ADR) of 8.7% and consistent occupancy levels in both non-peak and traditional peak seasons.

Mantra Group CEO, Bob East, said the region’s attractions coupled with a fall in the Australian dollar and growing inbound markets were behind the region’s success.

“Australians were looking for the ease of a domestic holiday in a destination that offered a diverse choice of experiences. The combination of natural attractions, family friendly accommodation and great food and wine combined with the fall in the Australian dollar benefitted the region,” he said. “We are also seeing continued growth with the Chinese market and other emerging markets travelling to the region.”

Mantra Group has three Peppers resorts located in North Queensland.

The Gold Coast/Northern NSW region also had a lift in RevPAR of 5% year-on-year, as did the Sunshine Coast.

Activity across CBD hotels has been largely flat across the industry however Mantra apartment hotel properties in all capital city locations are performing on par with or ahead of the market.

Sydney was a standout example however, with a 20% growth in RevPAR (across CBD and outer Sydney hotels) for the final quarter. The three CBD properties - Mantra 2 Bond Street, Mantra on Kent and BreakFree on George - enjoyed a final quarter RevPAR uplift of 13% to a market average of 4.4%.

“The corporate market is starting to make a return and we had an increase in our day of week business which led to a solid result for the Sydney CBD properties,” said Mr East.

Darwin was also a stand out region with an 11% increase in occupancy year-on-year and a 6% increase in ADR year-on-year. The ongoing activity with the mining resources sector and associated Government and corporate travel to the region coupled with strong occupancies during high season from leisure travellers attributed to the region’s success.

It was an historic year for Mantra Group with the opening of its first property in Asia – Mantra Nusa Dua in Bali. The resort is the first of many to come for the group with a further six properties on track to join the group by the end of 2013.

“We see Indonesia as a very attractive growth destination. It is short-haul with consistent and inexpensive air access, has an attractive exchange rate and is already popular with Australian and New Zealand leisure visitors plus its own growing consumer class opens up great opportunities for domestic travel,” added Mr. East

Mantra Group operates 114 properties and over 15,000 rooms in the Asia Pacific and employs nearly 4000 staff.