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 unaudited results for the six months ended 31 March 2017.
The Board is pleased to report that the Group continues to trade comfortably in line with market expectations and that the Directors are confident that the Group will meet its full year expectations.
All currency amounts are in US$ unless otherwise stated.
· Management agreement signed in October for Hodges Bay Resort in Antigua, the Company’s first property outside Barbados
· Agreement signed in March to provide sales and marketing services to The Landings Resort & Spa in St. Lucia
· Room count at 31 March 2017 up 15% to 553 (H1 2016: 483) as a result of the acquisition of Waves, which is performing ahead of the Group’s expectations
· Implied Net Asset Value (NAV) of 175 pence per share (219 cents per share*)
· Interim dividend declared at 3.5 pence per share (H1 2016: 3.5 pence per share)
· Post-period end, successful acquisition of Treasure Beach Hotel in Barbados
* based on an exchange rate of £1 : $1.25
As compared to the same period last year, the results for this period have been affected by a number of factors, primarily the weakness in Sterling. Although revenue has been broadly maintained, Average Daily Rate (ADR) and Revenue Per Available Room (RevPar) have both been lower, partly as a result of market factors, and partly as a result of the inclusion of Waves Hotel & Spa at a lower ADR.
Key Financials and Operating Metrics
· Occupancy rates of 66% (H1 2016: 69%)
· ADR of $425 (H1 2016: $464)
· RevPAR of $279 (H1 2016: $320)
· Revenue of $35.8m (H1 2016: $36.5m)
· Adjusted EBITDA* of $15.3m (H1 2016: $16.7m)
· Adjusted profit before tax of $12.2m (H1 2016: $14.4m)
· Adjusted EPS (cents per share) of 11.0c (H1 2016: 12.9c)
* 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.
Commenting on the results, Sunil Chatrani, CEO of Elegant Hotels Group plc, said: “The business has performed in line with our expectations for the first half of the financial year, against the backdrop of a difficult market that has been rebased due to the ongoing weakness of Sterling. Performance was also impacted by the Easter falling after the period end, as well as the closure of Daphne’s for refurbishment before Christmas.
Following the period end we were delighted to acquire Treasure Beach Hotel, in Barbados, a 4-star 35-room property that will be a great earnings-enhancing addition to the portfolio once it has been refurbished, repositioned and repriced, in line with our ongoing strategy. Combined with our existing portfolio in Barbados, as well as our new contracts in Antigua and St. Lucia, we believe that we have a strong platform for continued expansion. The Group has continued to trade in line with management expectations since the period end and the strength of our bookings pipeline for the remainder of the financial year is encouraging. As a result, we remain confident in the Group’s prospects for FY17 and beyond.”