Source: Mantra Group
Mantra Group ChairmanPeter Bush — Photo by Mantra Group

Mantra Group (MTR), Australia's only publicly listed pure-play hotel group on the ASX, today held its inaugural Annual General Meeting in Brisbane following its listing in June 2014.

Chairman Peter Bush confirmed the Group's FY14 results (see below), reporting a statutory total revenue of $454.7 million - an increase of 5.7% on FY13. Prospectus forecasts for each of the Group's operating segments were also achieved, reporting year-on-year revenue increases of 4.2% in CBD business, 4.3% in the Resorts sector and a solid 20% increase in the Central Revenue and Distribution sector.

"I am pleased to stand here today and report that the Group delivered on its FY14 prospectus forecast. This result reflects improved occupancy levels and average room rates, strong performance in guest services, the addition of new properties as well as Management's focus on cost control and improved efficiencies in key areas of the business," said Mr Bush.

"In addition, a new finance facility was negotiated which together with positive cash flow and cash generation places the Mantra Group in a strong position to continue to deliver on its growth prospects."

Mantra Group CEO, Bob East presented shareholders with a FY2015 Prospectus forecast which included $490.9 million in Revenue and $69.5 million EBITDA, and a growth strategy to deliver shareholder value which consisted of:

  • continuing to build Mantra Group brands through extensive product refurbishments; service programs, and marketing initiatives
  • implementing strategies to grow RevPAR and improve yield management
  • optimising distribution channels, both third party and direct
  • continued expansion via new properties in targeted locations throughout Australia and New Zealand and including South East Asia

"Mantra Group has a number of initiatives that are expected to drive growth in excess of industry growth. We recognise that core to delivering shareholder value lies in our product, distribution optimisation and pipeline growth," said Mr East.

A record eight properties joined the Mantra Group network in FY2014 and a further 5 properties have joined in FY2015, ensuring that all specifically identified properties in the Prospectus are now part of the network. These include: Mantra Frangipani Broome, BreakFree Long Island, Soul Surfers Paradise, BreakFree Fortitude Valley, Peppers Sentosa Seminyak, Mantra Wollongong, Mantra on the Quay Brisbane and Mantra St Kilda Road Melbourne.

New properties to have joined the Group in FY15 to date include Peppers Gallery Hotel Canberra, three Brisbane properties - Mantra Terrace Hotel, Mantra on Edward and Mantra Midtown Apartments – and BreakFree on Clarence in Sydney.

Future pipeline growth includes a new Mantra hotel in Brisbane's Fortitude Valley (late 2015), a new build Mantra hotel in Townsville (2016), a new build Peppers hotel in Melbourne's Docklands precinct (2016), a new build Mantra hotel in Bali (2015) and a new build Peppers hotel in Perth (2015).

Consistent with the prospectus, the Mantra Group Board plans to implement a long term incentive plan to attract and retain Senior Executives, aligning rewards with increased shareholder value. This will be at the discretion of Board and subject to shareholder approval where required.

Melanie Willis joined the Board as an independent non-executive director, primarily to replace Elizabeth Gaines, who resigned from the Board due to other executive commitments. The Mantra Group Board now consists of the following members:

  • Peter Bush, Chairman
  • Bob East, Mantra Group CEO
  • Andrew Cummins, Non-Executive Director
  • David Gibson, Non-Executive Director
  • Melanie Willis, Non-Executive Director

For a full copy of the Chairman and CEO address visit www.asx.com.au/asx/statistics/announcements.do using code ASX code 'MTR'.

Financial Results FY2014 highlights - in line with Prospectus forecast:

  • Statutory total revenue of $454.7m, up 5.7% on FY2013. The result is consistent with the full year statutory total revenue Prospectus forecast of $451.6m.
  • Pro forma revenue of $452.6m, up 6.7% on FY2013. The result is consistent with the full year pro forma revenue Prospectus forecast of $450.1m.
  • Statutory NPAT was ($0.3m), higher than the Prospectus forecast of ($2.2m)
  • Pro forma EBITDA of $62.4m, consistent with the full year Prospectus forecast of $62.0m
  • Pro forma NPATA of $31.2m, consistent with the full year Prospectus forecast of $30.1m
  • Pro forma adjusted EPS of 12.6 cents per share, consistent with the full year Prospectus forecast of 12.1 cents per share

About Mantra Group

Mantra Group is the leading Australian-based hotel and resort operator. Mantra Group's portfolio consists of 128 properties with more than 21,000 rooms in properties under management, across Australia, New Zealand, Indonesia and Hawaii. Operating three well-known and trusted brands – Peppers, Mantra and BreakFree - MantraGroup operates the second largest network of accommodation properties in Australia (by room number). The Group is positioned to offer both leisure and business style accommodation ranging from full-service city hotels and self-contained apartments to luxury resorts and retreats. The Group successfully listed on the ASX in June 2014 and in its first year as a public company was elevated to the ASX 200:

www.mantragroup.com.au; www.peppers.com.au; www.mantra.com.au; www.breakfree.com.au

Yvette Peverell
PR Manager
07 5631 2543
Mantra Group