CYPRUS: Hotel groups increase their profits during 2018 boom

A record year for tourist arrivals, with almost 4 million visitors choosing Cyprus for their holidays in 2018, has been reflected in hotel enterprises boosting their balance sheets.

According to an analysis, compiled by Stockwatch, of the financial results of listed companies shows that most hotel-owner companies recorded an increase in their profits, while others showed profits instead of losses in 2017.

Overall, these companies have increased business volumes and improved earnings over the previous year, which was also positive. Louis, Salamis, Leptos Calypso and Stademos increased their profits.

The net profit attributable to the owners of Louis stood at EUR 30.2 mln in 2018 compared to EUR 11.5 million in the previous year, recording an increase of EUR 18.87 million.

Salamis Tours increased their profit from EUR 5.2 mln in 2017 to 6.6.

LCH's profits rose to EUR 3.9 million in 2018 against earnings of EUR 839,400 in 2017.

Constantinou Bros and Agros recorded profits in 2018, while being in the red in 2017. Constantinou Bros Hotels announced earnings of EUR 6.5 mln for 2018 against losses of EUR 4.8 mln in 2017.

Agros’ profit for the year 2018 amounted to EUR 258,300 against losses of EUR 3.1 mln in 2017.

In total, hotel and leisure companies earned EUR 67 mln compared to profits of EUR 34 mln in 2017, with their turnover increasing by 19% to EUR 437.8 mln from EUR 367.9 mln.

Increased profits led companies to repay their debts. According to data from the Central Bank, hotels and restaurants SICs fell to EUR 275 mln in 2018 from EUR 692 mln in 2017 and from 32.5% to 14.1%.

It is believed that the increase in profits has led the companies to pay off their debts. Quoting Central Bank data, Stockwatch notes that hotels and restaurants’ NPLs have dropped to EUR 275 mln in 2018 from EUR 692 mln in 2017.