Qawra Palace plc, the company which owns the Qawra Palace Resort and Spa, is targeting September 2024 for full completion of the hotel’s refurbishment.

This was announced in the company’s Annual Report for the financial year ended 31st March 2024 (FY2024), released recently.

Since 2019, the Qawra Palace Resort and Spa has been undergoing a major upgrade and extension with a total investment of €40.6 million. The extension included an additional 57 rooms on the overlying airspace of the hotel, together with a further 121 rooms which were build on an adjacent plot owned by Qawra Palace.

The expansion was partly financed through a €25 million bond issue that was first announced at the start of 2023. The 5.25 per cent bonds will mature on 27th February 2033. €6.7 million of the proceeds were passed on by way of loan to Mallard Co Ltd, the company which manages and operates the hotel, to upgrade the property and develop new amenities.

The hotel, located on the Qawra promenade, now has 567 rooms spread over 10 floors, with five themed restaurants, a coffee shop, three bars, a fitness centre, an interactive squash court, extensive conference facilities, as well as three different pools.

The new extension of the Qawra Palace Resort and Spa / Facebook

While management had aimed to reopen the hotel in April 2023, yet this was then pushed back, with the establishment opening its doors for business at the start of June 2023.

In its report for FY2023, Qawra Palace had stated that Mallard was in the advanced phase of opening more rooms.

In the latest report, Qawra Palace stated that while refurbishment is “still underway,” it is targeted to be “fully completed by September 2024.”

The company said that since the hotel’s reopening, it has been experiencing “significant demand with remarkably positive occupancy rates.”

“Qawra Palace Resort and Spa’s extension and upgrade has enabled the hotel to compete with top performing four-star hotels in the northern area of Malta,” the company said.

As a result of the increased demand, Mallard’s projected revenue for FY2025 is €23 million, while the current average achieved room rates stand at €117.66. The hotel’s average occupancy levels are expected to reach 86.6 per cent by the end of the financial year.

Qawra Palace plc financial results

It is important to note that Qawra Palace is not a trading company, with it being economically dependent on the income derived from Mallard, the entity entrusted with the management and operation of the hotel.

During FY2024, Qawra Palace recorded €2.4 million in revenue, all derived from lease income for the property. During FY2023 and the preceding three years, Qawra Palace had agreed with Mallard to not charge rental fees in view of the effects of COVID-19 pandemic and the lessee’s results.

Administrative expenses increased significantly, going up from €70,967 to €150,366 in FY2024.

The major change that took place in Qawra Palace’s financials came as a result of a change in fair value of investment properties, which in FY2023 came in at €21.5 million, yet in FY2024 amounted to €4.7 million.

While finance income increased to €792,625 (FY2023: €159,093), finance costs were also on the rise, going up to €1.3 million from FY2023’s €249,109.

As a result, Qawra Palace’s pre-tax profit for FY2024 amounted to €6.2 million, a significant drop form the €21.3 million recorded in the previous year. However, this was primarily due to the revaluation of the property, as was previously explained.

The company's total assets as at the end of the reporting period stood at €91.6 million, a rise from FY2023's €85.1 million.

Additionally, Qawra Palace also provided some of Mallard’s results for FY2024. It noted that during the reporting period, Mallard registered over €13 million in turnover, a substantial improvement from the €6 million recorded in FY2023.

While the hotel reopening target date was not met, the company still reached the projected revenue for the financial year, a 32.3 per cent increase in turnover over pre-pandemic levels.