Constance Hotels Services Limited | Annual Report 2025

ANNUAL REPORT 2025

31

Chief Executive Officer’s Review

International tourism continued to expand in 2025, with visitor spending remaining strong across most destinations. Against this backdrop of sustained demand for leisure travel, 2025 was a year of solid overall performance for CHSL. Combined revenue from hotels under management reached MUR 11,553 million, up 8.5% year on year. Profitability outpaced revenue growth, with combined Gross Operating Profit increasing by 14.8% and EBITDA by 15.6%. While the operating environment remained supportive in terms of demand for luxury travel, it continued to present cost pressures, particularly across labour and operations in certain destinations. Throughout the year, Management prioritised pricing integrity and the protection of profitability rather than pursuing volume growth, and ensured a consistent standard of service across all properties. This approach enabled CHSL to navigate a complex operating environment while preserving the strength of its market positioning. Performance at Group level was primarily driven by strong average room rates, underpinned by effective revenue management and brand positioning. CHSL benefitted from its established European source markets and maintained a diversified customer base. In several properties, increased guest spend per stay contributed positively to profitability. At the same time, Performance Drivers in 2025

profitability came under pressure from rising labour costs, increased operating expenses, and higher financing costs. Management actions were geared towards strengthening cost control and operational efficiency to protect overall profitability. 2025 Performance by Destination Mauritius Mauritius remained a key contributor to Group performance, driven by consistent demand across segments. Performance within the portfolio was characterised by stable occupancy levels throughout the year, and solid average room rates, reflecting pricing consistency. In addition, higher guest spend per stay contributed to improved profitability, particularly in the premium segment. Constance Belle Mare Plage posted high occupancy levels, with stable average room rates, and Constance Prince Maurice recorded positioning within its segment, and Constance Sakoa Boutik reported stable occupancy and rate levels, reflecting the appeal of its offering. Overall, the destination maintained a finely calibrated balance between volume, pricing and profitability. Combined occupancy for the destination declined by 2.8 percentage points, with ARR increasing by 9.7%, resulting in a solid 5.9% improvement in RevPAR. steady demand from its various market segments. C Mauritius strengthened its

“Throughout the year, Management prioritised pricing integrity and the protection of profitability rather than pursuing volume growth, and ensured a consistent standard of service across all properties.”

Key Performance Indicators: Change 2025 vs. 2024 (Properties under management as at 31 December 2025)

+25.8

+14.2

+9.9

+9.9

+9.7

+8.7

+6.0

+6.0

+5.9

+0.0

+0.7

-2.8

-3.5

-4.9

-15.2

MAURITIUS

RODRIGUES

SEYCHELLES

MALDIVES

MADAGASCAR

Occupancy (% Points)

ARR (%)

RevPAR (%)