Commenting on the results, Sunil Chatrani, CEO of Elegant Hotels, said:
“We are pleased to have had a year of good financial and operational progress. The revenue increase reflects our strategy of delivering day-to-day excellence, developing our existing properties, and expanding our portfolio. The acquisition, refurbishment and subsequent relaunch of Treasure Beach in Barbados was a notable highlight, and since the year end Hodges Bay Resort & Spa in Antigua has opened under management contract.
Barbados continues to be a hugely attractive destination for visitors and holidaymakers from all over the world, and visitor numbers from the key markets of the UK and the US have continued to increase. While the market remains competitive, we firmly believe that we are well positioned due to the quality of our properties, our relentless focus on providing our guests with outstanding service, and the viability of our strategy. Our trading since the start of the new financial year has remained in line with market expectations, and our bookings are currently tracking ahead of the same period last year. While we are confident in our prospects for FY19, the Board continues to monitor macroeconomic conditions closely, which have the potential to reduce UK consumer discretionary spend.”
Elegant Hotels Group plc LON:EHG), the owner and operator of seven upscale freehold hotels and a beachfront restaurant on the island of Barbados, today announced its audited results for the year ended 30 September 2018.
Financial Highlights
· Revenue up 5.0% to $62.9m (2017: $59.9 million), reflecting the acquisition of Treasure Beach, the renovation of the House, and a continued strong performance from Waves
· RevPAR (revenue per available room) broadly flat at $225 (2017: $227)
· ADR (average daily rates) up 2.0% to $361 (2017: $354)
· Adjusted EBITDA* up 10.6% to $19.7 million (2017: $17.8 million)
· Profit after tax up 3.5% to $9.5 million (2017: $9.2 million)
· Adjusted diluted EPS up 15.9% to 11.3 cents per share (2017: 9.8 cents per share)
· Implied Net Asset Value (NAV) of 200 cents per share (153 pence per share†)
· Year-end net debt of $72.2 million (2017: $73.1 million)
· Proposed final dividend of 2.66 pence per share, resulting in a full year dividend of 4.0 pence per share
Operational Highlights
· Opened Treasure Beach hotel, a 35-suite property, in December 2017, in line with the Group’s expansion strategy, having refurbished, repositioned and repriced the property
· Hodges Bay Resort in Antigua, operated by Elegant Hotels under management contract, opened subsequent to year end, in December 2018. This is the Group’s first managed property outside Barbados
· Refurbishment projects during the year have included: the public area renovations and new spa at The House; the addition of a rum vault to Colony Club; and renovations of some rooms and bathrooms at Turtle Beach and Crystal Cove, respectively
· Established a centralised warehouse in order to increase operational efficiencies and take advantage of direct importation of food and beverage
* The Group uses adjusted EBITDA as a measure of performance as it better represents underlying performance. Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and one-off costs that are outside the ordinary course of business. Adjusted profit and adjusted EPS reflect the adjusted EBITDA figure. Comparative figures have been re-presented to include non-exceptional share-based payments in line with best practice.
†based on an
