The Resort Group Financial Results 2016
The Resort Group PLC has reported transformational results for the year ended December 31st 2016 in its Hospitality division, with revenue rising by 69% to deliver divisional EBITDA of €8.6 million, up 211% on 2015. Overall, group revenue for 2016 was €136m and adjusted EBITDA, €32.8m.
Development revenue from property sales is in line with expectations at €78.8m. Market valuations show a surplus to cost of €45 million for operating resorts at the year-end, rising to €81 million when including resorts in progress.
Overall, The Resort Group’s operating profit before financing costs rose 46% to £29.5 million (2015: £20.3 million). The Company is committed to reinvesting all profits into the construction and development of additional resorts and infrastructure on the archipelago.
Strategic highlights included the Group signing a partnership with Deutsche Hospitality to develop two new hotels in Cape Verde, which will become home to the Steigenberger Hotels and Resorts and Jaz at the Beach brands. A three-year minimum occupancy agreement was also signed with international tour operator, TUI Group for TUI Sensimar Cabo Verde and all TRG Resorts on Sal island.
The Group was also delighted to open two new hotels in December, TUI Sensimar Cabo Verde and MELIÃ Llana Beach Hotel, both on time and on budget. The resorts have enjoyed excellent occupancy since opening.
Rob Jarrett, CEO from The Resort Group PLC said: “The Resort Group PLC continues to develop as a world-class luxury Resort hospitality company. The Company is in an excellent position with a robust and diverse business model and increasing interest from hoteliers and tour operators as Cape Verde soars in popularity.
“We have the largest Resort and Hotel pipeline in Cape Verde, an increasingly important tourist destination, which has seen a 14 percent increase in tourism figures in 2016 alone. Tour operators and hoteliers are attracted to Cape Verde due to its short flying time from Europe, year-round sunshine, democratic government and stable economy. The five Resorts in operation are performing well and we are committed to investing in the pipeline to meet this growing demand for luxury Resorts.
“The current financial year has started well with strong occupancy levels across all the resorts.”
For more information about the Group and its integrated businesses, get in touch today via our contact page.