Good Result for Mantra But Rates Stubbornly Static

Mantra Group has capped its first year as a public company with a net profit of $36.2m, exceeding IPO forecasts, however struggled to increase room rates across the 119 property portfolio.

The result for the year to June 30 was underpinned by steady performance from Mantra’s hotels, resorts and apartments with the cream coming from 11 new properties, increasing revenue by 9.7%.

The best revenue increases came from Mantra’s CBD properties – up 15% year on year – “with like for like growth of 3.6% and new properties contributing $27.7m for the period”.

Occupancy across Mantra’s CBD portfolio remained very high at 84.5% but despite this demand rates grew by just 1%, suggesting something of a soft corporate underbelly.

Mantra’s resorts are primarily based in Queensland and occupancy increased 3.9% to 69.5% while revenue per available room grew 6%.

However, overall leisure room rates did not budge.

Looking ahead, Mantra CEO Bob East forecast good times ahead with growth to continue as more hotels and resorts are added to the company’s brand portfolio of Mantra, Peppers and BreakFree.

At this point there are nine new properties coming on board.

Mr East estimated that during the 2014/15 financial year 2m guests stayed at a Mantra hotel or resort.

Mantra listed on the Australian Stock Exchange on June 20 last year.

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