Eden Leisure Group post an EBITDA increase

The Eden Leisure Group recently reported its results for 2011 with positive growth figures in both its Hotel and Entertainment operations.

Group Chairman, Mr. Ian De Cesare stated, “The Group showed a significant increase in overall revenue of 13% from 20.3 euro million to 23 euro million. The Group’s EBITDA jumped significantly by 23 per cent from 4.4 euro mill to 5.5 euro mill for the year through improved results in both segments of its portfolio in spite of uncertainty in the international markets and a continued increased burden in utility rates and labour costs.

In 2011, InterContinental Malta continued to achieve significant improvements over the previous year. In 2011 revenue increase by 19 per cent and EBITDA jumped by 33 per cent to 3.6 euro mill on 2010 figures. Occupancy improved by 11 per cent to a record of 69 per cent against a 5 star industry average of 67 per cent  This result is extremely positive considering that the InterContinental is the largest hotel on the island. Notably, results show that occupancy is improving at a faster rate than those of the rest of the competitor set of 5 star hotels which last only year improved by 3 per cent. The hotel’s average rate also continued to improve with a growth of 8 per cent as compared to an industry increase of 4 per cent. These results were generated through growth in all major sectors.

The Entertainment portfolio made up of Eden Cinemas, Eden SuperBowl, Cynergi Health and Fitness Club, the Bay Arena, 89.7 Bay and the car park saw significant growth in the year which is particularly positive due to the maturity of these businesses. Overall 2011 saw a healthy increase in GOP of 9 per cent.
The Group continued to invest heavily in its product offering with the renovating of 100 hotel guestrooms last year and another 100 rooms being undertaken in 2012. The entertainment units also saw ongoing investment in their products primarily in Cynergi in 2011 and the Diamond Resort apartments which the Group manages.”

Mr. De Cesare stated that, “The outlook for 2012 is also positive and whilst there is still a lot of uncertainty when it comes to the international scenario vis a vis tourism as well as the local political and economic situation we are still expecting to see improvements in Revenue and EBITDA for 2012. Revenue is expected to increase by 7 per cent and EBITDA is expected to increase by 10 per cent. The growth is expected to be derived predominantly from the hotel operations which should show improvement of 15 per cent in GOP. 

This will come through the continued improvement in rate as well as maintaining its high occupancy.

The rest of the group is also expected to grow in 2012 albeit not at the same rate as the hotel. Our property section is expected to grow with the addition of a new 800 m2 office block which we should complete by quarter 4 this year as well as some other rental opportunities around the complex.