Constance Hotels Services Limited | Annual Report 2025

ANNUAL REPORT 2025

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Rodrigues

Quality of Service

impact on guest perception, although the temporary reduction in available inventory weighed on overall results.

disruptions to airspace over the Gulf region and resulting pressures on airline operations and connectivity, as well as higher energy costs. This has had an uneven impact on CHSL’s destinations. The Maldives and Seychelles have been more directly affected, given their reliance on air connectivity through Middle Eastern carriers and hubs. Mauritius has been impacted to a lesser extent, sustained by a higher proportion of direct connections from Europe. At this stage, no significant impact has been observed in Madagascar and Rodrigues. The near-term trajectory will depend on the recovery of air connectivity and broader geopolitical developments. In this context, Management will adopt a cautious approach, with emphasis on effective revenue management, protection of profitability, and the adjustment of operations to evolving demand conditions.

Our properties in Rodrigues, Constance Tekoma and C Rodrigues – Mourouk, are still in a consolidation phase following their recent integration. Guest feedback has been consistently positive, with no material resistance to pricing levels. Demand continues to be driven primarily by the Mauritian market. Although the destination presents clear potential, performance is closely linked to structural improvements in air connectivity. Combined occupancy in Rodrigues declined by 15.2 percentage points, alongside a 25.8% increase in ARR, resulting in a limited decrease of 3.5% in RevPAR. This performance reflects the ongoing adjustment phase, with higher room rates partially offsetting lower volumes and supporting a gradual stabilisation of our operations in this destination. The Seychelles destination delivered strong results, confirming its role as a key contributor to CHSL’s overall results. Demand was sustained through a diversified mix of international markets, with stable occupancy and pricing levels. Guest feedback remained positive, supporting the positioning of both properties within their respective segments. Constance Ephelia, Seychelles, achieved steady demand from multiple segments, and Constance Lemuria, Seychelles, benefitted from robust demand, consistent pricing strength, and a well-diversified international clientele. Combined occupancy increased by 6.0 percentage points and ARR grew by 6.0%, driving a strong 14.2% increase in RevPAR. This performance underscores the resilience of demand and sustained rate strength across the destination’s key markets. The Maldives remained a highly competitive destination, with continued supply growth influencing pricing dynamics. Performance during the year was uneven, reflecting sustained competitive pressure on average room rates and occupancy, as well as the high-cost base inherent to the destination. In this context, Management preserved a consistent pricing approach, avoiding volume-driven strategies during softer periods and protecting profitability. Constance Moofushi, Maldives, achieved satisfactory operating results within a challenging pricing environment. In parallel, Constance Halaveli, Maldives, recorded a solid start to the year, with refurbishment works carried out without any significant Maldives Seychelles

CHSL maintained a high level of service quality throughout the year. Guest satisfaction stood at 90.2% and the Global Review Index reached 95.8 for Constance Hotels & Resorts, in line with the expectations of our positioning. These indicators reflect CHSL’s ability to deliver consistent service standards despite operational constraints.

Combined occupancy declined by 4.9 percentage points, with ARR increasing by 8.7%, resulting in a marginal 0.7% increase in RevPAR. This reflects a deliberate pricing approach in a competitive environment, with rate growth effectively offsetting softer demand levels.

Madagascar

Technology

Performance in Madagascar was broadly stable, with stronger periods of activity underpinning full-year results. Constance Tsarabanjina, Madagascar, relies on a limited number of source markets, and efforts are ongoing to diversify demand and mitigate concentration risk over time.

Continued investment was made in digital infrastructure, data capabilities and cybersecurity. Technology is increasingly leveraged to enhance operational efficiency and the guest experience, while artificial intelligence is being applied in selected areas through a more structured approach.

Priorities for 2026

Appreciation

Occupancy remained stable, with ARR increasing by 9.9%, leading to a corresponding 9.9% increase in RevPAR.

In 2026, CHSL will complete the renovation programme at Constance Halaveli, Maldives, ensuring that the upgraded product fully meets our quality standards and reinforces the property’s positioning within its segment. At the same time, priority will be given to the effective integration and repositioning of newly added properties, including Constance Le Chaland, with a focus on achieving operational alignment and delivering a consistent guest experience from the outset. The development of Constance Private Residences will also be advanced, with initial implementation at Constance Prince Maurice. We will refine and reinforce the distinct identity and positioning of C Resorts, ensuring the distinctiveness of each hotel brand and improving operational efficiency, with a sustained emphasis on cost control and effective resource management. In parallel, CHSL will develop a more structured and practical approach to the use of artificial intelligence across its operations, with a view to enhancing efficiency, decision-making, and overall performance, while preserving the human touch that defines our brands.

I would like to express my sincere appreciation to the Board of Directors for its unwavering support and guidance. I also wish to acknowledge the commitment and professionalism of all our team members, whose dedication is central to the performance and success of CHSL.

Key Highlights and Initiatives in 2025

In 2025, CHSL implemented key initiatives aligned with its strategic priorities, supporting operational performance and long-term value creation.

Operations and Assets

Jean-Jacques Vallet (s) Executive Director and Chief Executive Officer

A renovation programme was initiated at Constance Halaveli, Maldives, aimed at maintaining product standards and safeguarding the property’s long-term positioning. At the same time, recently integrated properties continued to be aligned with Group standards, both in terms of service delivery and operational processes, ensuring consistency across the portfolio.

People

Recruitment and retention remained key challenges in several destinations, reflecting broader industry conditions. In this context, Management prioritised maintaining service consistency despite staffing constraints, enhancing the employee experience, and strengthening internal processes and communication to support operational resilience.

Commercial and Customer Engagement

Outlook

Efforts were made to consolidate CHSL’s loyal customer base, notably through the further development of the Echo Privilege Club. Targeted communication and brand visibility initiatives enhanced demand generation in priority markets and segments.

2026 has started on a satisfactory trajectory, with performance in the first quarter broadly in line with expectations.

However, the evolving geopolitical situation in Iran has introduced a new layer of uncertainty, notably through