Out-performance of its CBD properties, where revenue increased 13.5%, under-pinned the half year results for hotel, resort and serviced apartment operator, Mantra Group, the share price of which has virtually doubled over the past eight months – from a low of $1.69 to $3.25 this morning.
Mantra’s average CBD occupancy for the six months to Dec 31 was 85.6%, about the same as it was last year, with all the revenue growth coming from room rate increases.
CBD revenue for the period reached $136.4m.
Its resorts portfolio achieved an average 71.9% occupancy rate, which was up 5.4%, however revenue only grew 3.6% to $95.1m, indicating an overall softening of rates.
The company reported statutory total revenue of $252.7m, up 9.4% on H1FY2014, and net profit after tax of $23.1m, an increase of 9.1% on the same period last year.
Mantra Group Chief Executive Officer Bob East said, “The Group performed strongly in terms of revenue, profitability and cash flow.
“This result reflects improved occupancy levels and average room rates as well as a focus by Management on cost control and improved efficiencies in key areas of the business.”
Mantra operates 114 properties encompassing almost 12,000 rooms across the Mantra, Peppers and Breakfree brands.