Lux Island Resorts (LIR) continues to grow despite a tourism market facing a number of challenges. The hotel group has reported strong results for the 2025–2026 financial year, with revenue increasing by 6.9%, surpassing the record level achieved the previous year. So far, the impact of international conflicts and inflation on the group’s operations remains under control.
The group’s financial performance remains firmly positive, with continued growth across key indicators. LIR achieved a record revenue of Rs 11.4 billion, representing an increase of 6.9%, while normalised EBITDA reached Rs 3.12 billion, up 15%. Operating profit also increased from Rs 1.93 billion in 2025–2026 to Rs 2.31 billion during the current financial year.
This strong performance was accompanied by a strengthening of the group’s financial position. Supported by strong operating cash flow and lower debt levels, with Rs 675 million in loans repaid during the financial year, LIR also reduced its net finance costs by Rs 45.1 million.
This positive momentum helped increase profit before tax to Rs 1.88 billion, representing a 29% increase compared with the previous financial year. The higher tax expense, amounting to Rs 325.7 million, was mainly due to the application during the year of the 5% Fair Share Contribution and the Corporate Climate Responsibility Levy to the group’s Mauritian entities.
Higher Occupancy in Mauritius and Réunion, Slight Decline in the Maldives
From a destination perspective, Mauritius remains the main driver of LIR’s growth. The group’s Mauritian properties generated 75.2% of total EBITDA, amounting to Rs 2.38 billion. The occupancy rate across the Mauritius portfolio reached 87%, an increase of 2% year-on-year, while revenue across the portfolio rose by 10.2%.
In Réunion, LUX Saint Gilles* recorded an occupancy rate of 78%, while its revenue increased by 1.6%. Among LIR’s hotels, LUX South Ari Atoll* in the Maldives was the most affected by the conflict in the Middle East. The resort recorded an occupancy rate of 67%, while revenue declined by 1.6%. This performance was mainly affected by lower air traffic from Gulf countries, combined with the continued expansion of hotel supply in the destination. However, the impact of this decline remains marginal on the group’s overall performance.
The group’s strong financial performance also enabled LIR to make an early repayment of Rs 750 million to the Mauritius Investment Corporation (MIC), representing part of the loan provided during the Covid-19 crisis. The group also completed the acquisition of the land on which LUX Saint Gilles* is located, financed through a combination of equity and bank borrowings.Shareholders are also benefiting from the group’s improved performance, with a 20% increase in dividends, bringing the total dividend payment to Rs 411.3 million.
“An Outstanding Performance”
“This is the direct result of an outstanding performance, despite an increasingly challenging international environment. We have demonstrated our resilience and our ability to seize opportunities, while maintaining an optimal level of service quality and remaining fully committed to our objectives. For 2027, we plan to continue investing in the improvement of our infrastructure by undertaking renovation and enhancement works across each of our destinations. These projects have been made possible by the results achieved this year,” said Désiré Elliah, Chief Executive Officer.
Among the planned projects, the rooms at LUX Saint Gilles* will undergo a phased renovation, with work carried out block by block to allow the hotel to remain open throughout the process. At LUX Le Morne*, the public areas and restaurants will also be renovated, alongside the construction of seven new villas. At LUX South Ari Atoll*, a three-year renovation programme will be implemented, allowing the resort to remain operational throughout the works.
These projects will be supported by the group’s strong financial position, which continues to strengthen year after year through a solid growth strategy focused on targeted investments and disciplined resource management.
