The hotel group Lux Island Resorts Ltd has incurred losses of Rs1.06 billion for the financial year ending June 30, 2021. This was revealed in its financial accounts which were released on Friday, September 17, 2021. The net losses are higher than those incurred last year, i.e. Rs878 million. This is a major blow for one of the largest hotel groups operating in Mauritius as well as in the Maldives, Reunion and China.
The group’s turnover has gone from Rs4.8 billion last year to Rs2.3 billion in 2021. Operations in Mauritius have been at a standstill with the closure of the borders due to the pandemic. As a result, there were no foreign tourist stays in Mauritian hotels in FY2021.
The Lux Group says it has issued redeemable bonds totaling Rs1.75 billion to the Mauritius Investment Corporation.
Meanwhile, LUX South Ari Atoll in the Maldives has posted stronger results with tourism activities resuming towards the end of August 2020 in the archipelago. The hotel’s occupancy rate was 48%. On Reunion Island, the LUX Saint Gilles recorded positive cash flow.
Despite the crisis, the Group continued with its investment projects in the LUX Grand Baie hotel, which will open in November 2021. It has also tried to preserve jobs. The Lux Group is both optimistic and uncertain about its future performance. The Lux Group says it welcomes the reopening of borders in Mauritius, but says its success will depend on our ability to regain the confidence of tourists.
