Qawra Palace plc, the company that owns the Qawra Palace Resort & Spa property located on the Qawra promenade, has announced that it registered a €670,828 pre-tax profit during the period covering 1st April 2023 to 30th September 2023 (FY2023).

The hotel had closed for refurbishment during the opening months of 2023, and reopened its doors at the start of June. The major expansion project saw it add 178 rooms to its offering, and marked the first full renovation since it first opened back in 1985.

Earlier this year, the company raised funds from the issue of €25 million 5.25 per cent secured bonds which was oversubscribed ahead of schedule. Proceeds from the bond issue were utilised according to the Prospectus, with €16.4 million being used to repay existing bank loans. €6.7 million were passed on by way of a loan to Mallard Co. Ltd, the company that manages and operates the hotel, in order to upgrade the property and develop new amenities and catering outlets within the complex. The remaining €1.9 were allocated for general corporate funding purposes.

Sharing the results in its interim financial statements for FY2023 on Tuesday, the company’s pre-tax profit figure represents an upturn in performance, having recorded a €268,995 pre-tax loss in the same period in 2022.

The main sources of income leading to the increase in pre-tax profit were rental income and interest, coming in at €1.2 million and €309,212 respectively, that started being charged to its subsidiary company during the period under review. Qawra Palace's lease agreement with Mallard Co. Ltd includes an annual rent of €2.4 million that started from 1st April 2023, subject to an annual increment of two per cent.

Once the hotel reopened its doors for business, it generated revenues of €7.7 million, 54 per cent more than in the corresponding period last year. Total revenues during FY2023 are also 10 per cent higher than pre-pandemic levels registered in the same period in 2019. The company’s Directors stated that the positive results are mainly attributable to “strong occupancy levels”, as despite reopening in June, these reached an average of 93.9 per cent, coupled with “increased room rates”, which were 31 per cent more than 2019.

“Management of the operating company [Mallard Co. Ltd] is confident that these positive results obtained so far should be further improved upon in the coming months. In fact, revenue generated for October and November exceeded expectations,” Qawra Palace’s Directors said.

The company’s total assets as at the end of the reporting period amounted to €86.4 million, representing a 1.5 per cent expansion from the figures at the end of the previous period. The company’s Directors did not recommend the payment of an interim dividend.

The hotel is still undergoing refurbishment and is seeking the completion of certain amenities. Qawra Palace stated that the timely completion of the works is “dependent on various external factors and third-party contractors”.