The nomination of Rezidor APS Hotels in September 2015 has not triggered the expected results in 2016. The Operator has taken more time to overcome the situation resulting in continued losses for the hotel segment in 2016. The underperformance of the operator during its first year was stringently addressed.
The Operator hired new high calibre resources as from the second half of 2016 and a re-positioning of the resorts has been undertaken. The impact in the last quarter 2016 was positive, and prospects for 2017 are already promising.
Rental management of residences has been separated from hotel operations as from the last quarter of 2016. A joint venture with a rental pool operator, with proven track record, is expected to start generating positive results as from end of 2017. In addition, a substantial number of contracts, providing a three year rental guarantee period to owners matured in February 2017. A significant reduction of the annual costs, which stood at Rs 68.6m in 2016 (2015: Rs 68.5m), is expected as from 2017.
With the re positioning of the hotels and in conjunction with the increase in occupancy, the number of positive online feedbacks increased. On Tripadvisor, the world’s largest travel site, out of 178 hotels in Mauritius, the Radisson Blu Poste Lafayette went from 72nd position to 28th since May 1st and is now featured on the 1st page. This is due to an increase of Global Review Index from 84.40 to 92.90%. Although on a slower pace, the Radisson Blu Azuri went from 57th position to 51st since May 1st. Global Review Index increased from 89.9 to 91.1%.