Mantra Group is expecting to deliver $490.0 million in revenue and $69.5 million EBITDA when FY2015 ends, ceo Bob East said at the group’s annual general meeting in Brisbane yesterday.
East said the company would deliver results to shareholders by developing a new “growth strategy” consisting of building the Mantra Group brands through extensive product refurbishments, marketing initiatives, increasing RevPAR, improving yield management and optimising distribution channels to include both third party, and direct.
Expansion via new properties was also listed as a key strategy, which the company successfully achieved in FY14 with a record 8 hotels joining the group. A further 5 are already set to join in FY15, which include Peppers Gallery Hotel Canberra, three Brisbane properties – Mantra Terrace Hotel, Mantra on Edward and Mantra Midtown Apartments – and BreakFree on Clarence in Sydney.
FY14 delivered a profit increase of 5.7% to $454.7 million, with revenue up 4.2% in CBD business, 4.3% in their resorts sector and 20% on its central revenue and distribution sector.
“This result reflects improved occupancy levels and average room rates, strong performance in guest services, the addition of new properties as well as Management’s focus on cost control and improved efficiencies in key areas of the business,” Mantra chairman, Peter Bush said.
“In addition, a new finance facility was negotiated which together with positive cash flow and cash generation places the Mantra Group in a strong position to continue to deliver on its growth prospects.”
Future pipeline growth includes a new Mantra hotel in Brisbane’s Fortitude Valley (late 2015), a new build Mantra hotel in Townsville (2016), a new build Peppers hotel in Melbourne’s Docklands precinct (2016), a new build Mantra hotel in Bali (2015) and a new build Peppers hotel in Perth (2015).
The group also announced it will consider implementing a long-term incentive plan to attract and retain senior executives, aligning rewards with increased shareholder value.
