Constance Hotels, Resorts and Golf | Annual Report 2023

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Strategic Insights

Constance Hotels Services Limited

Annual Report 2023

19

Strategic Insights

Constance Hotels Services Limited

Annual Report 2023

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.