Dear Unit Owners
Welcome to our first quarterly newsletter of 2017. I hope that you all had a chance to enjoy a break with your families and loved ones over the Christmas period.
Mantra Group’s Christmas giving drive ended with the successful donation of 2197 gifts. Through the generosity of our Team Members we proudly helped families who were staying at refuges and crisis accommodation throughout Christmas. Rosie and her team from the Luke Batty Foundation have expressed their thanks and are overwhelmed yet again at how invested all our Team Members are in supporting families and the fight against domestic violence.
2016 was an extremely rewarding year for Mantra Group. We successfully embarked internationally with our expansion into Hawaii and saw opening results perform well above industry-average in the South Pacific hotel market; we opened an office in Singapore and we outpaced the market in Australia and New Zealand with better growth than any of our competitors.
2017 will be yet another busy year for the group, as we welcome several new properties to our portfolio including Tribe West Perth and Mantra Sydney Airport Hotel. We will continue to focus on updating our existing portfolio with high quality refurbishments as well as exploring other key Australian and International destinations.
Last month we announced our half yearly results to the ASX and I am pleased to report the following highlights;
RESORT SEGMENT – HIGHLIGHTS
Excellent growth was achieved in our Resorts segment across all key metrics. A strengthening leisure market due to strong inbound trends continuing resulted in a 7.8% organic increase in Resorts revenue. Occupancy increased by 5.3% as a result of increased demand from domestic and international travellers and average room rate increased by 7.6% as a result of the increased demand, particularly in Queensland destinations.
CBD SEGMENT – HIGHLIGHTS
CBD revenue growth of 3.4% benefited principally from full year contributions from two CBD properties added mid and late H1FY2016. Whilst overall occupancy increased by 0.5% following strong conference business and special events in Melbourne and Canberra, RevPAR (revenue per available room night) decreased by 1.6% which was primarily as a result of the subdued operating conditions in Brisbane, Perth and Darwin.
We will be keeping the momentum going throughout the remainder of the year, with our teams all engaged in delivering on the key strategic initiatives that were set out for achievement at the start of the year. Our key digital innovation initiatives in particular are full steam ahead; our Marketing team has been working towards a long term digital blueprint to ensure Mantra Group’s digital assets enable us to compete with hotel and on-line players from around the globe. We will have exciting updates to share with unit owners in this space later in the year.
Bob East – CEO