Expansions boost Mantra's profits

Mantra Esplanade Cairns

Australia's Mantra Group's first-half fiscal year profit rose by 26 percent, boosted by new properties including a Hawaiian resort and a China-led boom in travel to Australia.

The company reported a net profit of $30.5 million for the six months through December, up from $24.3 million in the same time the previous year. 

Mantra owns brands including Peppers and BreakFree, and has benefited from a global tourism boom, especially in Australia

The company has recently expanded in the U.S. and Indonesia. In July, the company issued new shares to fund the $52.5-million purchase of the Ala Moana Hotel in Honolulu that added more than 1,000 rooms to its portfolio. In November, the company secured five new hotel signings with a combined total of more than 900 additional rooms across Australia and New Zealand. 

The company said first-half revenue rose by 16 percent to $356.2 million, primarily driven by new properties, including the Ala Moana.

Mantra reaffirmed expectations for an annual net profit of between $48.5 million and $52.5 million, and EBITDA between $101 million to $107 million.