Constance Hotels, Resorts and Golf | Annual Report 2023
Hospitality leaders in the Indian Ocean
Dear Shareholder,
The Board of Directors is pleased to present the Annual Report 2023 of Constance Hotels Services Limited which was approved on 28 March 2024.
George J. Dumbell (s) Chairman
Clément D. Rey (s) Executive Director Constance Group Chief Executive Officer
28-61 Sustainability Report Our Sustainability Framework
Contents
Sustainability Certifications and Practices Climate Change & Environmental Stewardship Quality of Services
Our People and Health & Safety Corporate Social Responsibility The Way Forward
4-15 At a Glance
62-127 Corporate Governance Statement of Compliance
About the Group The Group in 2023 Our Hotel Portfolio Awards and Accolades in 2023
Statement on Corporate Governance Governance Structure Director Appointment Procedures Director Duties, Remuneration and Performance Risk Management and Internal Controls Relations with Key Stakeholders Other Statutory Disclosures Statement of Directors’ Responsibilities
Company Secretary’s Certificate Independent Auditors’ Report
16-27 Strategic Insights Chairman’s Statement
Chief Executive Officer’s Review Our Value Creation Model Group Key Performance Indicators
128-194 Financial Statements Statement of Financial Position Statement of Profit or Loss
Group Financial Indicators Group Financial Highlights Value Added Statement
Statement of Profit or Loss and Other Comprehensive Income Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements
OUR HOSPITALITY BRANDS
A Contemporary Lifestyle Brand
A Branded Collection of Nine Luxury Resorts
About the Group
The C Resorts brand brings hotels to life with exciting guest experiences, fresh and friendly service, and stylish design around the strong brand concept of ‘Nature’s Playground’.
The Constance Hotels & Resorts brand stands for simple, natural and friendly luxury. It enjoys a strong reputation built over more than 40 years.
A LEADER IN LUXURY HOSPITALITY MANAGEMENT
Constance Hotels, Resorts & Golf (CHRG) is known for its excellence in luxury hospitality and golf management, having established a strong international network of sales offices and public relations agencies. Through the management company, Constance Hospitality Management Ltd, CHRG operates eleven hotels in five authentic destinations (Mauritius, the Seychelles, the Maldives, Madagascar and Rodrigues) and three 18-hole championship golf courses in Mauritius and the Seychelles. CHRG is dedicated to delivering quality branded products and services, providing its guests with unique and memorable experiences, and ensuring sustainable financial returns to its partners and shareholders.
OUR CORPORATE VALUES
Innovative Spirit
Passion
Integrity
Responsibility
OUR BRAND ARCHITECTURE
OUR GROWTH AMBITION
CHRG drives growth for its stakeholders by leveraging the value of its corporate brand and by developing its presence in destinations where it currently operates as well as in new territories in the Indian Ocean region. Our growth ambition is to broaden our portfolio of managed properties, whilst keeping the family spirit, know-how and professionalism that have earned us our reputation.
Constance Leading Hotels
Constance Luxury Resorts
Constance Lodges
Constance Boutique Hotels
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At a Glance
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At a Glance
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The Group in 2023
Scandinavia
Russia
UK
MUR 9,748m
Germany
France
Eastern Europe
Italy
Turkey
Spain
South Korea
Japan
Israel
China
Combined Revenue of Hotels Under Management
UAE
8
3
1,122 Rooms Under Management
3,126 Team Members
Maldives
Hotels
Championship Golf Courses
Seychelles
Madagascar
Mauritius
90.1 %
96.3 % Global Review Index TM (ReviewPro)
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49.7
Awards & Accolades
Average Training Hours per Team Member
Overall Guest Satisfaction Score
South Africa
Rodrigues
2.7 m Engagements on Facebook
229 k Engagements on Instagram
411 k Followers on Facebook
226 k Followers on Instagram
15
Sales and Marketing Offices and General Sales Agent Representations
5
Destinations
Data relate to the year 2023 and do not cover the three additional properties which CHRG has taken over for operations and management from 01 January 2024.
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At a Glance
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Our Hotel Portfolio
Leading Hotels
3 Hotels
3
Constance Leading Hotels
89 suites and villas 3 restaurants 3 bars and 1 wine cellar 2 championship golf courses (Legend and Links) 2 swimming pools Constance Spa with 7 treatment rooms Constance Kids Club
2
Constance Luxury Hotels
2
Constance Lodges
105 suites and villas 4 restaurants 5 bars and 1 wine cellar 1 championship golf course (Lemuria) 1 swimming pool with 3 levels Constance Spa with 6 treatment rooms Constance Kids Club
1
Constance Boutique Hotel
86 suites and villas, each with its own private pool 4 restaurants 2 bars and 2 wine cellars 1 swimming pool Constance Spa with 9 treatment rooms Constance Kids Club
2
C Resorts
* Constance Hotels, Resorts & Golf has taken over the operations and management of three hotels, namely Constance Tekoma, Constance Sakoa Boutik, and C Rodrigues - Mourouk, starting from 01 January 2024.
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At a Glance
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Luxury Hotels 3 Hotels
Lodges 2 Hotels
278 rooms, suites and villas 8 restaurants 8 bars and 1 wine cellar 2 championship golf courses (Legend and Links) 4 swimming pools Constance Spa with 10 treatment rooms Constance Kids Club
25 villas 1 restaurant 1 bar 3 white sandy beaches Constance Spa
313 rooms, suites and villas 5 restaurants 6 bars and 1 wine cellar 5 swimming pools Constance Spa of 5,000m² with 18 treatment rooms Constance Kids Club
32 rooms 1 restaurant 1 bar 1 swimming pool Constance Wellness
110 villas 2 restaurants 2 bars and 1 wine cellar 1 swimming pool Constance Spa with 8 treatment rooms
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At a Glance
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Boutique Hotel 1 Hotel
C Resorts 2 Hotels
16 rooms and suites 1 restaurant 1 bar 1 swimming pool Constance Wellness
116 rooms 3 restaurants 1 deli style outlet 1 bar and 1 wine cellar 3 swimming pools C Spa with 6 treatment rooms
65 rooms and 2 villas 2 restaurants 1 bar 1 swimming pool Kids club
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Awards
CONSTANCE HOTELS & RESORTS
CONSTANCE SPA AT CONSTANCE EPHELIA, SEYCHELLES
& Accolades in 2023
World Travel Awards - Indian Ocean’s Leading Hotel Brand
World Luxury Spa Awards - Luxury Health Spa - Luxury Resort Spa - Luxury Beach Resort Spa
CONSTANCE PRINCE MAURICE
CONSTANCE HALAVELI, MALDIVES
World Travel Awards - Mauritius’ Leading Green Resort Tripadvisor Travelers’ Choice Best of the Best Hotels - 22nd in the Best Luxury Hotels in the World - 4th in the Top 25 Hotels in Africa
World Luxury Hotel Awards - Luxury Family Beach Resort
- Luxury Beach Villa - Luxury Private Villa - Luxury Water Villa Resort World Travel Awards - Maldives’ Leading Villa Resort Tripadvisor Travelers’ Choice Awards - Top 10% of listings on Tripadvisor Booking.com - Traveller Review Award
- 2nd in the Best Luxury Hotels in Africa Tripadvisor Travelers’ Choice Awards - Top 10% of listings on Tripadvisor Booking.com - Traveller Review Award
CONSTANCE BELLE MARE PLAGE
CONSTANCE MOOFUSHI, MALDIVES
World Golf Awards - Indian Ocean’s Best Golf Course
World Luxury Hotel Awards - Luxury Eco Hotel - Luxury All-Inclusive Resort World Travel Awards - Indian Ocean’s Leading All-Inclusive Resort - Indian Ocean’s Leading Dive Resort Tripadvisor Travelers’ Choice Awards - Top 10% of listings on Tripadvisor Booking.com - Traveller Review Award
Tripadvisor Travelers’ Choice Best of the Best Restaurants - 9th in the Best Fine Dining Restaurants in Africa (Blue Penny Cellar) Tripadvisor Travelers’ Choice Awards - Top 10% of listings on Tripadvisor Booking.com - Traveller Review Award
CONSTANCE LEMURIA, SEYCHELLES
CONSTANCE TSARABANJINA, MADAGASCAR
World Luxury Hotel Awards - Luxury Golf Resort - Luxury Hotel Tripadvisor Travelers’ Choice Awards - Top 10% of listings on Tripadvisor Booking.com - Traveller Review Award
Tripadvisor Travelers’ Choice Awards - Top 10% of listings on Tripadvisor Booking.com - Traveller Review Award
CONSTANCE EPHELIA, SEYCHELLES
C MAURITIUS - PALMAR
World Luxury Hotel Awards - Luxury Beach Resort - Luxury Eco Resort - Luxury Family Resort World Travel Awards - Indian Ocean’s Leading Green Resort - Seychelles’ Leading Family Resort Booking.com - Traveller Review Award
Tripadvisor Travelers’ Choice Best of the Best Awards - 5th in the Best All Inclusive Hotels in the African Region Booking.com - Traveller Review Award
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Strategic Insights
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Chairman’s Statement
Chairman’s Statement
Dear Shareholder,
the development of a new loyalty programme. Our commitment to deliver True Service to our guests is reflected in the continual high scores achieved by our properties on the Global Review Index, the industry-standard online reputation benchmark, and guest satisfaction surveys.
in Rodrigues will, also, be extended in anticipation of the upcoming airport expansion and increased air capacities. We will be launching our Echo Privilege Card; applying the newly signed 20-year extended management contracts for the two properties in the Seychelles; and continuing to explore opportunities to expand our hotel portfolio, with a focus in the Indian Ocean. The outlook for 2024 appears promising, with booking trends continuing to be robust. However, we must remain cautious due to ongoing geopolitical uncertainties across the globe, which could potentially dampen the flow of leisure travellers, especially during our low season. On the upside, we anticipate an increase in cross border travel from our principal Asian markets, including Japan, South Korea, and China. In the face of the difficult human resources challenges within the entire hotel industry over these past years, your Company has maintained its commitment to service excellence, thanks to the professionalism and dedication of its People. This is reflected in the record employee engagement score achieved in 2023. The Board expresses its deep gratitude and appreciation to the Company’s talented, devoted, and loyal team members, all of whom have demonstrated remarkable adaptability and resilience. We extend our sincere thanks to the Chief Executive Officer and his Management Team for their skilled and decisive leadership, which has adeptly guided the Company over the past year. I am indebted to my colleagues on the Board for their active engagement, alongside the invaluable contributions of the Group Chief Executive Officer and his Management Team. Our shareholders, financial partners, loyal guests, and other stakeholders across the industry deserve special mention for their continued trust, confidence, and loyalty. Their enduring support fuels our commitment to excellence. OUR PEOPLE ACKNOWLEDGEMENT
In 2023, leisure travel demand continued to be robust, regardless of the ongoing geopolitical conflicts and uncertainties in many parts of the world. Your Company was well positioned to benefit from this sustained demand and new growth opportunities, buoyed by its unwavering dedication to product and service excellence, the provision of luxury properties in key market destinations, a broad and vibrant sales and marketing network, and the outstanding commitment of its People.
In December 2023, the Board approved a three-year Strategic Plan, the focus areas being to:
- Grow our hotel portfolio within the Indian Ocean. - Reinforce our brand positioning by leveraging our new brand architecture. - Continue to provide exceptional product and service offerings through digitalisation, quality innovations and the enhancement and extension of our properties. - Improve the Company’s top-line in the Maldives with better RevPAR. - Reduce our debt-to-equity ratio. - Increase shareholder return in a sustainable manner. As your Company explores and taps into growth opportunities, our commitment to ESG principles and sustainable practices, with a view to balancing sustainability, social responsibility and profitability, remains resolute. Our Sustainable Management Plan, which is continually assessed and updated to reflect new sustainability concerns, guides our people and operations by embracing the United Nations’ Sustainable Development Goals and other standards set by international organisations. We are progressing well with the implementation by 2030 of the 165 sustainability-related initiatives we launched in 2022. Our Green Globe Gold certification stands as a testament to our rigorous commitment to continuous improvement in our sustainability performance. Six of our hotels are expected to reach Platinum status in 2024. Your Board is aware of emerging governance challenges, including those of cybersecurity governance and reporting on Climate Change disclosures, and ensures that good Corporate Governance and best business practices are applied across your Company and its operations through adequate structures, diligent oversight and proactive engagement. OUR ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) COMMITMENTS
OUR OPERATING MARKETS
The surge in global leisure travel was reflected in our own principal destination markets, which achieved much improved tourist arrivals. Mauritius reported a 29.9% increase in arrivals compared with 2022. The increases for the Maldives and the Seychelles were 12.1% and 5.7% respectively. As anticipated, Madagascar maintained a strong growth trend for the year.
YOUR COMPANY
Notwithstanding the weaker than anticipated performance of our properties in the Maldives due to stiff competition, with the continual opening of new luxury hotels and a weaker than expected inflow of arrivals from Asia, all our other properties were able to capitalise on the buoyant global leisure travel. This resulted in your Company achieving record overall RevPAR, TrevPAR and EBITDA, and a most satisfactory 30% increase in Net Profit, in the face of higher expenditure relating to the strong resumption of activity, inflationary pressures and interest rate hikes. In 2023, having transitioned out of recovery mode, we were able to refocus on our hotel portfolio growth agenda set prior to the outbreak of the COVID-19 pandemic. In this respect, your Company entered into a partnership with Trimetys Ltd to manage and operate the Sakoa Boutik Hotel in Mauritius, and the Constance Tekoma and C Rodrigues - Mourouk Hotel in Rodrigues, effective 01 January 2024. The partnership also encompasses equity investments in both hotels in Rodrigues. We are now present in five authentic destinations in the Indian Ocean with a new brand architecture and a portfolio of eleven properties. This enables us to deliver a more comprehensive range of products and service offerings to attract a broader cross-section of leisure travellers and drive growth. During the year, we pursued further product and service innovations and engagement with our guests through enhanced digitalisation, proactive quality monitoring and improvement, and GROWING WITH PURPOSE
Our commitment to deliver True Service to our guests is reflected in the continual high scores achieved by our properties on the Global Review Index, the industry-standard online reputation benchmark, and guest satisfaction surveys.” “
George J. Dumbell (s) Chairman
THE WAY FORWARD AND OUTLOOK
In 2024, we will begin deploying the actions earmarked in our new Strategic Plan. The three new properties under our management will have their operations upgraded to align with the Constance Standards and our commitment to excellence. The two properties
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Chief Executive Officer’s Review
Chief Executive Officer’s Review
Maldives
In spite of the aforementioned challenges, 2023 started on a strong note for Constance Moofushi and Constance Halaveli. Thanks to this early pace, both our properties achieved above-target occupancy levels for the first half of the year and effectively navigated the low season with satisfactory performances. However, during the last quarter, Constance Halaveli recorded a decrease in its occupancy. The combined Turnover for Constance Moofushi and Constance Halaveli decreased by 7.1%, whilst GOP and EBITDA dropped by 19.3% and 20.2%, respectively.
INTRODUCTION
2023 was a year of strong performance for Constance Hotels, Resorts & Golf, despite lingering and new geopolitical conflicts and uncertainties. Our key traditional markets returned to their pre-COVID performance levels, except for the Chinese market in the Maldives, and we maintained the positive momentum from the previous year with newer markets, notably Russia and Eastern Europe. As a result, combined occupancy for all our properties under management rose by 4.6% percentage points compared with 2022, whilst combined Average Room Rate (ARR) increased by 5.1%, driving increases of 11.7% and 8.7% in Revenue Per Available Room (RevPAR) and Total Revenue Per Available Room (TRevPAR) respectively. In 2023, Mauritius recorded strong demand from diverse markets, with 1,295,410 tourists visiting the destination, compared with 997,290 in 2022. We effectively capitalised on this demand, achieving record year in all three of our properties under management. Constance Prince Maurice remained the leading luxury property in Mauritius, consistently achieving the highest occupancy in the five-star plus segment, with RevPAR figures that underscore the property’s strong positioning. Constance Belle Mare Plage continued to lead the 5-star luxury large resort segment. C Mauritius stepped into the spotlight in 2023. This year was its first full year of operation following the official launch of the C Resorts brand in October 2022. After a gradual start to the year, occupancies consolidated from March onwards. Overall, the combined Turnover of our three properties under management in Mauritius surged by 27.1%, whilst GOP and EBITDA increased by 29.8% and 39.3% respectively. During the year under review, the Seychelles remained a highly sought-after tourism destination, supported by an increase in airline seating capacity. Tourist arrivals reached 350,879, compared with 332,068 in 2022, representing an increase of 5.7%. In 2023, for the second consecutive year, Constance Ephelia and Constance Lemuria experienced a record-breaking year in terms of Revenue, GOP, and EBITDA. REVIEW OF 2023 BY DESTINATION Mauritius Seychelles
In 2023, tourist arrivals in the Maldives totalled 1,878,543, compared with 1,675,303 the previous year, representing a year-on-year increase of 12%. Despite this growth, demand from our key market of China had yet to fully recover to its pre-COVID level. A total of 187,125 Chinese tourists visited the Maldives in 2023, compared with 284,029 in 2019, representing a recovery rate of only 66%. Moreover, the opening of new hotels intensified the competition. Consequently, the yearly average bed capacity for this destination increased by 7.5% between 2022 and 2023. However, the construction of the new international passenger terminal at Velana International Airport is set to be highly beneficial for the Maldives. Expected to open in early 2025, the new terminal, with an annual passenger capacity of 7.5 million, will help boost demand to match the increasing bed capacity and mitigate competitive pressures.
Madagascar
Following the recovery observed in 2022, Constance Tsarabanjina recorded a strong performance in 2023. It is worth noting that the borders of this destination fully reopened in mid-April 2022.
Key Performance Indicators: Change 2023 vs. 2022 (Properties under management as at 31 December 2023)
MAURITIUS
SEYCHELLES
Occupancy (% Point)
Occupancy (% Point)
+11.9
+0.1
ARR (%)
ARR (%)
+14.8
+3.4
RevPAR (%)
RevPAR (%)
+34.2
+3.6
MALDIVES
MADAGASCAR
Occupancy (% Point)
Occupancy (% Point)
+34.1
-7.5
ARR (%)
ARR (%)
+4.0
+6.8
2023 was a year of strong performance for Constance Hotels, Resorts & Golf, despite lingering and new geopolitical conflicts and uncertainties.” “
RevPAR (%)
RevPAR (%)
+76.6
-4.7
Our combined Turnover for this destination increased by 2.6%. GOP and EBITDA improved by 9.7% and 19.4%, respectively.
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Strategic Insights
Chief Executive Officer’s Review
Chief Executive Officer’s Review
iv. Refinement of our Quality Standards: We are committed to providing our guests with unique and memorable experiences through quality products and services. Quality has been part of our DNA from the start, but it has never been more important, as guests in the hospitality industry increasingly focus on quality, value for money, and personalisation of their stay. In 2023, we consistently assessed, refined, and monitored the quality standards of all our properties under management. The continual high scores achieved by our properties on the Global Review Index (GRI) and guest satisfaction surveys, coupled with the numerous awards and accolades received, serve as proof of our unwavering commitment to quality. Every year since 2014, Constance Hotels & Resorts has achieved high scores ranging from 93% to 95% on the GRI, enabling our brand to consistently be listed among the top 10 small luxury brands worldwide. v. Development of our Loyalty Programme: We have developed our loyalty programme, the Echo Privilege Club, set for launch in 2024. The Echo Privilege Club positions us as the first hotel group in the Indian Ocean to introduce such a programme. This initiative, born from two years of in-depth research, brainstorming sessions, and workshops, aims to foster a strong sense of belonging among our guests, making them feel an integral part of the Constance Family. vi. Advancement of our Technological Transformation: During the year under review, we pursued our technology transformation to enhance guest experiences, modernise and elevate our technological infrastructure, optimise our operations through initiatives such as the shift to OPERA Cloud, and fortif your cybersecurity framework, whilst upskilling concerned team members. vii. Upholding of our Sustainability Commitments: All our actions in 2023 were guided by our deep-rooted sustainability principles as outlined in our 2030 Sustainability Management Plan (SMP). The SMP attests to our commitment to balancing our growth agenda with the sustainability priorities defined by the United Nations’ Sustainable Development Goals (SDGs). viii. Approval of a Three-Year Strategic Plan: Building upon the momentum of the year under review, in December 2023, the Board of Directors outlined our growth plan for the next three years through the approval of a new Strategic Plan. With the ultimate aim of increasing shareholder return in a sustainable manner, actions earmarked in the Strategic Plan primarily seek to further reinforce our presence and brand positioning within the Indian Ocean and sustain our commitment to excellence through exceptional product and service offerings.
OUR KEY BUSINESS INITIATIVES IN 2023
OUR PRIORITIES IN 2024 AND OUTLOOK
2023 was a turning-point year for us as we fully moved out of the COVID-19 era, and we were able to refocus on our strategic growth agenda. The following were our key initiatives:
Our priorities and initiatives in 2024 will be guided by our Strategic Plan.
Regarding our product and service offerings, extension and renovation works will commence in most of our properties. We will revamp our Constance Kids Clubs across all our properties to enhance their look and feel. Since 01 January 2024, we have taken over the operations and management of Constance Tekoma, Rodrigues, Constance Sakoa Boutik, Mauritius, and C Rodrigues - Mourouk. We are now actively working towards aligning their operations with our quality standards. With a view to maintaining continuity, we will renew the management contracts for the two properties in the Seychelles. Concurrently, we will continue to explore opportunities to expand our presence in the Indian Ocean through new management contracts for both the Constance Hotels & Resorts and C Resorts brands. The outlook for 2024 is positive, though vigilance remains necessary due to ongoing global geopolitical tensions, which have the potential to adversely affect leisure travel, especially during our off-season periods. In the Maldives, the return of travellers from major Asian markets, including Japan, South Korea, and China, is crucial to enhancing our performance in that destination. Moreover, in the Maldives, we will undertake the necessary measures to ensure that we are fully prepared to capitalise on the anticipated opening of the new passenger terminal at Velana International Airport in early 2025, which will significantly boost the annual passenger capacity.
i. Establishment of Partnership with Trimetys: In October 2023, Constance Hotels, Resorts & Golf entered into a partnership with the Mauritius-based company Trimetys Ltd to manage and operate, starting from 01 January 2024, their three hotels: the Sakoa Boutik Hotel in Mauritius, and the Tekoma Boutik Hotel and Mourouk Hotel in Rodrigues. This partnership enriches our hotel portfolio, now comprising eleven properties. Moreover, by adding another authentic destination to our offering, it further strengthens our position as a major player in luxury hospitality in the Indian Ocean. ii. Adoption of New Brand Architecture: Following our partnership with Trimetys Ltd, we have developed and adopted a new brand architecture to better reflect our brand portfolio and offerings. Our luxury brand, Constance Hotels & Resorts, now includes four categories and nine properties. These categories are: Leading Hotels (i.e., hotels that are members of The Leading Hotels of the World), Luxury Resorts, Lodges, and Boutique Hotels. Our lifestyle hotel brand, C Resorts, now features two hotels: C Mauritius - Palmar and C Rodrigues - Mourouk. This revamped brand architecture allows us greater leverage to engage our diverse target segments with distinct, relevant, and compelling offers iii. Consolidation of our Position as an Employer of Choice: The COVID-19 pandemic has intensified the human resource challenges faced by the hospitality industry in Mauritius and the Seychelles. Young people are less attracted to this industry. In this respect, we commend the initiative led by the Association of Hoteliers and Restaurants in Mauritius (AHRIM), where all hotels in Mauritius have joined forces to encourage young Mauritians to embrace a career in the industry. Despite this challenging context, Constance Hotels, Resorts & Golf has consolidated its position as an employer of choice within the industry, thanks to strategically-conceived initiatives. During the year under review, we implemented innovative recruitment strategies to attract top talent, offered competitive compensation and benefits to retain our dedicated team members, and redoubled our efforts to foster a diverse and inclusive workplace, thereby enhancing employee engagement and satisfaction. The employee engagement score of 87.93% achieved in 2023 reflects the effectiveness of our human resource strategy, as well as our commitment to creating a workplace where our team members feel valued and motivated.
APPRECIATION
I express my gratitude to all the members of the Board of Directors for their unwavering support and invaluable guidance. I also extend my heartfelt appreciation to all our team members. Their remarkable dedication and engagement are at the heart of Constance Hotels’ ability to withstand challenges and thrive.
Jean-Jacques VALLET (s) CEO, Constance Hotels, Resorts & Golf
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Our Value
Creation Model
VALUE OUT
VALUE IN
Outcomes in 2023 by Type of Stakeholders
Target Capital Output
Capital Input
Employees
Financial
Financial
- Average employee engagement score of 87.93%. - Average annual training hours of 49.7 per team member. - Quarterly activities to enhance employee experience: Thank You Week, Generosity Challenge, Brand Week, and Knowvember.
- Increased revenue & profitability - Debt reduction - Optimised allocation of financial resources - Expansion of our regional footprint - Equitable shareholder return
Equity and debt capital enable us to finance our operations and execute our growth strategy.
Governance and Risk Management Framework
Intellectual
Intellectual
- Reinforced brand equity & awareness - Enhanced guest satisfaction and loyalty - Expanded hotel management portfolio
We leverage our expertise and know-how in human scale luxury hospitality management, our brands and our strong corporate culture to develop unique offerings.
Shareholders and Investors
- EBITDA Margin of 27%, Debt-to-Equity of 0.82, Basic and diluted earnings per share of MUR 2.58, NAV per Share of MUR 44.62, and Return on Total Equity of 5.50%.
Asset-Light Growth Strategy
Human
Guests
Human
Through their competencies, expertise and dedication, our team members contribute in providing fresh and memorable experiences to our guests.
- Score of 96.3% on the Global Review Index (ReviewPro). - Overall guest satisfaction score of 90.1%. - 41 awards and accolades.
- High level of employee engagement - High employee retention rate - Strong employer reputation - Training & development
Communities and Society
Natural and Social
Natural and Social
- Responsible business practices. - Various initiatives to preserve the biodiversity of the territories in which the Constance Hotels Group operate. - 13 NGOs sponsored by Fondation Constance. - 139 CSR initiatives at property level.
We are committed to positively contributing to biodiversity conservation, cultural heritage preservation and community development in the regions where we operate, and we actively engage with our stakeholders.
- Sustainable & ethical growth - Positive community developments - Reduced carbon footprint - Engaged stakeholders
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Group Key Performance Indicators
Group Financial Indicators
(2021 and 2020 data should be analysed taking into account the adverse impact of the COVID-19 pandemic on the operations of CHRG)
(2021 and 2020 data should be analysed taking into account the adverse impact of the COVID-19 pandemic on the operations of CHRG)
MUR 5,727M REVENUE
EBITDA MUR 1,571M MUR 2.6 EPS
2023
OCCUPANCY (%)
78.2 %
78.2
73.6
66.7
REVENUE (MUR M) AND ASSET TURNOVER
EBITDA (MUR M) AND EBITDA MARGIN (%)
30
28
38.7
27
0.34
29.9
0.31
22
0.23
13
0.15
2023
2019
2020
2021
2022
1,571
1,525
0.10
5,727
978
5,091
3,517
534
1,584 2,439
212 2020
AVERAGE ROOM RATE (MUR)
2023
2023
2019
2020
2021
2022
2019
2021
2022
18,485 MUR
Revenue Asset Turnover
EBITDA EBITDA Margin
18,989
18,485
17,801
17,587
15,579
TOTAL DEBT (MUR M), TOTAL EQUITY (MUR M) AND DEBT-TO-EQUITY
1.24
1.22
0.96
0.90
0.82
2023
2019
2020
2021
2022
5,996
5,832
5,979
5,817
5,160
5,373
5,387
4,808
4,770
4,763
TOTAL REVENUE PER AVAILABLE ROOM (MUR)
23,781 MUR
2023
2019
2020
2021
2022
23,781
21,848
Total Debt
Total Equity
Debt-to-Equity
17,037
12,124
8,273
FINANCE COSTS (MUR M) AND INTEREST COVER
EARNINGS/(LOSS) PER SHARE (MUR)
2023
2019
2020
2021
2022
2.58
2.05
1.37
1.27
0.81
-0.13
-0.64
(1.30)
COMBINED REVENUE OF HOTELS UNDER MANAGEMENT (MUR M)*
(6.46)
(12.92)
734
TOTAL 9,748
640
597
544
542
TOTAL 8,955
2023
2023
2019
2020
2021
2022
2019
2020
2021
2022
1,989
TOTAL 6,425
Finance Costs
Interest Cover
2,117
TOTAL 4,965
NAV PER SHARE AND SHARE PRICE (MUR)
VOLUME OF SHARES TRADED (‘000)
1,599
4,146
TOTAL 3,398
1,037
25.75
4,047
1,374
21.50
20.70
20.30
2,925
2020 733 1,969 696
13.20
2,680
3,613
297
2,791
169
1,901
86
78
54.52 43.95
911
44.62
37.72 40.65
2023
2019
2021
2022
2023
2023
2019
2020
2021
2022
2019
2020
2021
2022
Mauritius
Seychelles
Maldives
NAV per Share Share Price
*Constance Tsarabanjina, Madagascar, has been included under Mauritius for practical reason.
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Strategic Insights
Constance Hotels Services Limited
Annual Report 2023
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Strategic Insights
Constance Hotels Services Limited
Annual Report 2023
Group Financial Highlights
Value Added Statement
2023 MUR’000 5,727,053
2022 MUR’M 5,091,004
2023 MUR’M 17,073
2022 MUR’M
%
%
Statement of Financial Position
Revenue
Total assets Borrowings
16,411
658,363
Value Added Tax/Goods and Services Tax
521,066
4,770 4,893 5,832
5,160 4,457 5,387
Total Revenue
6,385,416 (2,502,222) 3,883,194
5,612,070 (2,661,027) 2,951,043
Owners' interest
Payment to suppliers for materials and services
Total equity
Value added by operations Other income/(charges)
176,686
124,655
2023 MUR’M
2022 MUR’M
Total wealth created
4,059,880
100%
3,075,698
100%
Statement of Cash Flow
1,275
Net cash generated from operating activities
1,290 (199) (510)
Distributed as follows: Employees Salaries and wages
(31)
Net cash used in investing activities Net cash used in financing activities
(1,209)
1,567,964 1,567,964
1,303,559 1,303,559
39%
42%
2023 MUR’M
2022 MUR’M
Government Value Added Tax/Goods and Services Tax
Statement of Profit or Loss
658,363 29,158 101,311
521,066 22,964 141,539
5,727 1,571
Revenue EBITDA
5,091 1,525
Environment fees Corporate tax
967
Operating profit
864
2,555
Licences, land leases and other local tax
1,909
(734)
Finance cost
(640)
42,541
Social security charges
37,527
422 321 283
Profit before taxation
389 247 225
833,928
21%
583,466
19%
Profit for the year
Reinvested to maintain/develop operations Depreciation and amortisation
Profit attributable to owners of the parent
641,169 283,316 924,485
638,064 224,728 862,792
Retained earnings
23%
28%
Financial Ratios
2023 44.62
2022 40.65
Providers of capital Interest on financial debt
NAV per share
MUR
733,503 733,503
18% 18%
325,881 325,881
11% 11%
0.82
Debt to equity ratio
0.96
27.00
Operating margin
% %
30.00
4,059,880
100%
Total wealth distributed
3,075,698
100%
5.50 1.27 2.58
Return on total equity Interest cover ratio Earnings per Share
4.59 1.37 2.05
MUR
18%
23%
11%
28%
Employees Government
2023
2022
Providers of Capital Reinvested to maintain/develop operations
42%
19%
21%
39%
Sustainability Report
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Sustainability Report
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Annual Report 2023
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Sustainability Report
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Annual Report 2023
Our Sustainability Framework
Our Sustainability Framework
1. OUR SUSTAINABILITY FRAMEWORK (continued)
1. OUR SUSTAINABILITY FRAMEWORK
1.2 Our Corporate Sustainability Strategy (continued)
1.1 Our Commitment to Sustainability
The tourism industry has been contributing positively to economic growth and to the promotion of natural, emotional and physical well-being across the world. Yet, the industry’s carbon footprint is significant, and it is particularly vulnerable to climate change, local environmental challenges, community development issues and, more recently, pandemics – all of which are critical to the quality of the experiences we provide to our guests. At Constance Hotels, Resorts & Golf (CHRG), we understand the potential impact that our operations may have on the environment, communities, cultures and economies of the territories where we operate. In this respect, we incorporate the values and principles of sustainable development in all our business practices and relationships with our stakeholders. To this end, we continuously strive to refine our level of understanding of sustainability.
The SDGs and the 4 Pillars of Our Corporate Sustainability Strategy
We are committed to:
01
02
03
04
05
Embedding sustainable
Promoting sustainable and
Understanding and respecting
Complying with all laws
Leveraging the opportunities presented by sustainable development to deliver long term strategic benefits to our stakeholders and superior value to our shareholders.
PILLAR
AIM
SDG
development principles into
responsible tourism by contributing
the needs of our stakeholders, and use our collective influence to drive sustainability within the tourism industry.
and regulations applicable in the countries where we operate.
To contribute to the reduction of social disparities and poverty by providing opportunities for economic empowerment through corporate social actions and community development, promoting local employment, and supporting local entrepreneurs. To identify and minimise the environmental impact of our operations, both locally and globally, by seeking greater efficiency in the use of natural resources, managing our waste products responsibly, and contributing to the preservation of the biodiversity and natural ecosystems. To build competitive advantages within the industry through inspired service that exceeds guests’ expectations, economic empowerment of the surrounding communities, proactive stakeholder engagement, quality training, and responsible and ethical governance and business practices. To preserve both the tangible and intangible cultural and historical heritage of the territories where we operate by remaining fully involved in local life, whilst aiming to immerse our guests in the discovery and conservation of the unique cultural, culinary and artistic wealth of each destination.
People
our core business practices, across our business units.
to biodiversity conservation, cultural heritage preservation and community development.
True People
Planet
True Places
Our sustainability practices are guided by the highest form of principles specific to the tourism industry and the countries where we operate, such as the United Nations World Tourism Organization’s Global Code of Ethics for Responsible Tourism (GCET), the International Labour Organization’s Guidelines on Decent Work and Socially Responsible Tourism and the National Code of Corporate Governance for Mauritius (2016). To consistently achieve our sustainability objectives, our management teams are guided in their daily decision-making operations by the Sustainable Management Plan (SMP) we have developed. Our SMP embraces the United Nations Sustainable Development Goals (SDGs), considered as an overarching framework to our strategy and operations.
Prosperity | Peace
True Services
1.2 Our Corporate Sustainability Strategy
Prosperity | Partnership
With sustainability being a key focus of the boardroom agenda, we have formulated a sustainability vision and strategy that delivers long term strategic benefits and balanced value to our stakeholders, based on six key ingredients: innovation, public trust, guest satisfaction, top talent retention, compliance, and efficiency. We have translated the 5 Ps of the SDGs—People, Planet, Prosperity, Peace, and Partnership—into our Corporate Sustainability (CS) strategy, ‘True by Nature’, which rests on four pillars: True People, True Places, True Services, and True Experiences.
True Experiences
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Our Sustainability Framework
Our Sustainability Framework
1. OUR SUSTAINABILITY FRAMEWORK (continued)
1. OUR SUSTAINABILITY FRAMEWORK (continued)
1.2 Our Corporate Sustainability Strategy (continued)
1.3 Roles and Responsibilities
Our CS strategy is rooted in the identification and analysis of the critical factors impacting our business, stakeholders and society at large. The formulation and implementation of our CS strategy is facilitated and supported by CHRG’s Corporate Sustainability function, in conjunction with other business units. In this regard, a first materiality assessment, based on the SDGs, was conducted in 2018 among management and employee representatives across our business units. The aim was to develop a deep and thorough understanding of the economic, ethical, social, environmental and governance factors shaping our broader business performance. This first materiality assessment enabled us to gain insight into the significance of each SDG target for CHRG, to constructively brainstorm on the opportunities to strengthen our dialogue with key stakeholders, and to identify the essential drivers to effectively steer our CS strategy towards the year 2030.
Management Committee Resort General Manager Heads of Department Sustainability Champions
Corporate Office
Sustainability Committee
Board of Directors Corporate Governance Committee
Chief Executive Officer Chief Operations Officer Corporate Sustainability Manager
Sustainability Champions Employee Representatives
In December 2019, the materiality assessment was refined with a view to:
Adjusting our sustainability commitments and targets.
Strengthening our CS thinking and integration, and community development.
Strengthening stakeholder engagement.
Enhancing the robustness and proactiveness of the reporting process.
In order to inform strategic choices and operational decision-making, we aim to use the insights gathered from the materiality assessment as a management tool. To achieve a holistic evaluation of the current and future expectations and needs, external stakeholders will be included in the expanded assessment.
Legal Authorities
Industry Associations
Tour Operators /Guests
Team Members
Local Communities
Suppliers
NGOs
In the light of the aforesaid materiality assessment, it was decided that our CS strategy should focus on the following three priorities:
01
02
03
A transparent internal structure, with defined roles and responsibilities, ensures that sustainability matters are rigorously handled across all business units.
Priority
To promote safe and secure working environments.
To substantially reduce waste generation by refusing, reducing, recycling and reusing.
To protect marine and coastal ecosystems, including their restoration, and to strengthen their resilience for a healthy and productive ocean.
The Corporate Governance Committee, meeting four times a year, acts as the highest authority on sustainability and sets the strategic direction. The Corporate Sustainability Manager serves as an interface for sustainability matters. The latter is delegated the responsibility for coordinating all sustainability activities, implementing the CS and managing reporting obligations. At business unit level, the General Manager is responsible for executing the CS strategy, with the support of the Sustainability Champion and the Sustainability Committee, which meets monthly. Together, they are responsible for developing sustainability activities, ensuring internal and external expansion of stakeholder dialogue, and making appropriate proposals to the Board. The Sustainability Committee comprises a member from top management, the Sustainability Champion, the Financial Controller, the Human Resources Manager, the Maintenance Manager, the Quality Manager, the Executive Chef, the Food & Beverages Manager and the Executive Housekeeper. In addition, other team members act as sustainability engagement ambassadors to support the Sustainability Committee. The Sustainability Committee engages in two-way communications with relevant stakeholders through a range of channels and event formats, valuing professionalism, transparency and respect, whilst embodying generosity, innovation and creativity. Both internal and external stakeholders are encouraged to contribute their ideas to the Committee, and updates on progress are communicated through internal channels, web-based platforms and annual reports.
SDG Target
Due to the impact of the COVID-19 pandemic in 2020 and 2021, the full materiality assessment has been shifted to 2024 and will thereafter be reviewed every three years, allowing the topics and resulting actions to evolve over an adequate period of time.
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Sustainability Certifications and Practices
Sustainability Certifications and Practices
2. SUSTAINABILITY CERTIFICATIONS AND RESPONSIBLE SOURCING AND PROCUREMENT (continued)
2. SUSTAINABILITY CERTIFICATIONS AND RESPONSIBLE SOURCING AND PROCUREMENT
2.1 The Green Globe Certification Programme
2.4 Food Safety Management Systems
The Green Globe Certification programme is the world’s most recognised and longest-running global certification for sustainable travel and tourism. It hinges on a set of 44 core criteria related to sustainable management, social and economic issues, cultural heritage and the environment. The origin of the Green Globe organisation can be traced back to the United Nations Rio de Janeiro Earth Summit in 1992, where 182 heads of state endorsed the Agenda 21 principles of sustainable development. In 2013, CHRG embarked on the Green Globe Certification programme to better promote its existing environmental sustainability credentials and to enhance its sustainability performance. The year 2018 was a turning point as six of our properties located across the Indian Ocean were awarded the prestigious Green Globe Gold Certificate with an average score of 90%. The Green Globe Gold Certificate, awarded to organisations which have certified for five consecutive years, is a testament to our rigorous commitment to continual improvement in our sustainability performance. We now look forward to the next milestone of the certification programme: The Platinum Award.
ISO 22000 is an international standard which incorporates both traditional quality assurance preventive measures (ISO 9001) and preventive food-safety measures (HACCP) to provide a practical approach for reducing and eliminating safety risks within the food supply chain as a means to protect consumers. Under the leadership of our Executive Chefs, the team aims to: - Embed, review and continually improve the internal processes and systems to provide safe food consistently. - Guarantee our guests that robust and effective food safety practices and procedures are in place. - Guarantee our management teams, team members and suppliers that we have the required ability to control food safety hazards and provide safe products. - Continuously improve the food management system to optimise all activities related to food safety. - Ensure adequate control at all stages of the food supply chain to prevent the introduction of food safety hazards. Following the introduction of the ISO 22000:2018 certification in June 2018, Constance Belle Mare Plage became the first hotel in the Indian Ocean to be certified. In November 2022, Constance Lemuria, Seychelles, was also awarded the certification, thus becoming the first hotel in the Seychelles to be ISO22000:2018 certified. HACCP practices are in place in other resorts and are regularly audited in conformity with the aforesaid philosophy. With a view to offering the best culinary experiences, the preferences and allergies of each and every guest are duly considered and appropriate portions are offered upon request. Constance Moofushi, Maldives, and Constance Halaveli, Maldives, obtained their first HACCP certification in August 2022.
2.2 Exploitation-Free Environment
CHRG strictly complies with all applicable labour laws and regulations, and prohibits the employment, sexual harassment and exploitation of children. In this respect, a dedicated set of internal policies, such as the Equal Employment Opportunity Policy and the Code of Conduct, have also been put in place. The Code of Conduct for the Protection of Children from Sexual Exploitation in Travel and Tourism (‘The Code’), introduced by The Code.org, is a multi-stakeholder initiative with the mission to provide awareness, tools and support to the tourism industry to prevent the sexual exploitation of children. Adhering companies commit to six essential criteria to keep children safe. CHRG maintains its compliance with all six criteria of the Code, making it a clear statement to our team members and guests that we do not accept the commercial sexual exploitation of children.
2.5 Green Fins Certification
As a Green Fins member, TGI Maldives is responsible for the protection and conservation of coral reefs at Constance Halaveli, Maldives, by establishing and implementing friendly guidelines that promote sustainable diving and snorkelling. This includes the monitoring of the environmental impact of its Diving Centre.
Regular training sessions are conducted to ensure that the Green Fins Code of Conduct is strictly adhered to.
2.3 Seychelles Sustainable Tourism Label (SSTL)
2.6 PADI Certification
With 6,400 PADI Dive Centre and Resorts, 133,000 PADI Professionals, and nearly 25 million divers worldwide, the Professional Association of Diving Instructors (PADI) stands as the world’s leading scuba diver training organisation. It defines itself as a force for good with tremendous human potential to make an impact on critical social and environmental issues. PADI is committed to elevating the discourse and inspiring actions that strengthen the global dive community and contribute to a healthier ocean planet.
Launched in 2011 by the Government of Seychelles and recognised by the Global Sustainable Tourism Council, the SSTL is a voluntary sustainable tourism certification programme specifically designed for use by hotels of all sizes in the Seychelles, the objective being to promote more efficient and sustainable ways of doing business. In line with our commitment to sustainability, Constance Lemuria, Seychelles and Constance Ephelia, Seychelles are among the 22 certified establishments. In October 2023, The SSTL was rebranded as ‘Sustainable Seychelles’.
All our Diving Centres at CHRG adhere to the PADI principles, ensuring that our guests enjoy the highest quality of technical guidance and environmental practices.
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