Lux Island Resorts (LIR), a leading Mauritian hospitality group, has announced impressive financial results for the 2025-2026 financial year, despite a challenging global tourism market. The company's revenue reached a historic high of Rs 11.4 billion, representing a 6.9% increase from the previous year. This growth is a testament to LIR's resilience and strategic planning.
LIR's financial performance was marked by a normalized EBITDA of Rs 3.12 billion, up 15% from the previous year. The company's operational profits also rose to Rs 2.31 billion, from Rs 1.93 billion in 2025-2026. These results were achieved despite the impact of international conflicts and inflation on the group's operations. LIR's Chief Financial Officer, Hurrydeo Ramlagun, attributed the success to the company's solid strategy and rigorous resource management.
The company's strong performance was driven by its Mauritian properties, which generated 75.2% of its total EBITDA, amounting to Rs 2.38 billion. The occupancy rate at its Mauritian hotels increased by 2% to 87%, while revenue growth was 10.2%. LIR's Réunion Island property, LUX* Saint Gilles, reported an occupancy rate of 78% and a 1.6% increase in revenue.
However, LIR's Maldives operations, specifically LUX* South Ari Atoll, were affected by the Middle East conflict, with an occupancy rate of 67% and a 1.6% decline in revenue. The company attributed this decline to reduced air traffic from Gulf countries and increased hotel supply on the destination. Nevertheless, the impact on LIR's overall performance was minimal.
LIR's financial situation has been strengthened by its operational cash flow and debt reduction efforts, with Rs 675 million in loans repaid during the year. This led to a 29% increase in pre-tax profit to Rs 1.88 billion. The company's tax burden rose to Rs 325.7 million, primarily due to the introduction of the Fair Share Contribution and Corporate Climate Responsibility Levy.
LIR's positive results enabled the company to make an early repayment of Rs 750 million to the Mauritius Investment Corporation (MIC) and finalize the acquisition of the LUX* Saint Gilles land. Shareholders also benefited from a 20% increase in dividends, totaling Rs 411.3 million. LIR's CEO, Désiré Elliah, hailed the performance as "remarkable," citing the company's ability to adapt to a complex international environment.
Looking ahead, LIR plans to invest in infrastructure improvements, including renovations and upgrades across its destinations. Projects include the renovation of LUX* Saint Gilles' rooms, LUX* Le Morne's public spaces and restaurants, and the construction of seven new villas. These initiatives will be funded by the company's solid financial foundation, which is expected to continue growing through strategic investments and resource management.
Key points
- Lux Island Resorts reported a 6.9% increase in revenue to Rs 11.4 billion for the 2025-2026 financial year.
- The company's EBITDA rose 15% to Rs 3.12 billion, driven by strong performance in Mauritius.
- LIR plans to invest in infrastructure improvements across its destinations, including renovations and upgrades.
