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Mantra outlines growth strategy at inaugural AGM

Mantra Group AGM Peter Bush Chairman - EDITED

Mantra Group Chairman Peter Bush

Mantra Group, Australia’s only publicly listed pure-play hotel group on the ASX, has outlined its growth plans at its inaugural Annual General Meeting in Brisbane following its listing in June 2014.

Chairman Peter Bush confirmed the Group’s FY14 results, reporting a statutory total revenue of AUD$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,” Bush said.

“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 AGM Bob East - EDITED

Mantra Group CEO Bob East

Mantra Group CEO, Bob East, presented shareholders with a FY2015 Prospectus forecast which included AUD$490.9 million in Revenue and AUD$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; and
-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,” East said.

A record eight properties joined the Mantra Group network in FY2014 and a further five 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).

Mantra Group AGM1 - EDITED

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

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