New Mauritius Hotels Expands Investment in Morocco with New Luxury Hotel Project

Significant Financial Gains and Future Developments

As Morocco prepares for significant international engagements, it is becoming increasingly prominent in the financial reports of New Mauritius Hotels (NMH). The Mauritian group, which owns the Fairmont Royal Palm Marrakech through its local subsidiaries, has reported a substantial revenue of nearly 1.5 billion Mauritian rupees (approximately 303 million dirhams) stemming from the reorganization of its hotel portfolio within the kingdom. These funds are earmarked for reinvestment into new projects, including the construction of a new 150-room hotel in Marrakech, as revealed in their annual results published this week. The audited financial statements were submitted on September 23 to the Mauritius Stock Exchange.

The Moroccan operations generated 1.6 billion rupees during the fiscal year from July 1, 2025, to June 30, 2026, equating to nearly 323 million dirhams, reflecting a 17% increase year-on-year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached 327 million rupees, about 66 million dirhams. NMH attributes this growth in revenue to sustained demand, although it has noted increased competition within the Moroccan hotel sector.

However, while the revenue growth is notable, it masks a more measured increase in gross profit. Previous accounts had recorded Moroccan revenues at 1.357 billion rupees for the 2024-2025 fiscal year, with EBITDA at 319.8 million. As a proportion of sales, this aggregate represented approximately 20.4% for 2025-2026, down from around 23.6% a year prior, indicating that the increase in volumes has not translated into proportional gains in profit margins within Morocco.

Future Prospects for the Royal Palm Marrakech Project

At the group level, revenue increased by 12%, reaching 18.9 billion rupees, or about 3.81 billion dirhams. EBITDA surged by 25% to 6.1 billion rupees, approximately 1.23 billion dirhams, while net profit rose by 45% to 2.9 billion rupees, close to 585 million dirhams. The net cash flows from operating activities amounted to 5.8 billion rupees.

The project for the new 150-room hotel is not a new concept in the financial statements; NMH had first unveiled its financial architecture back in February 2025. Its Moroccan subsidiary, Beachcomber Hotel, was set to transfer the existing Fairmont Royal Palm Marrakech, which features 134 rooms and suites, to a newly established property company, Apexia Beachcomber Properties. The real estate group Yamed was to acquire a 51% stake in this company for 306 million dirhams, with Beachcomber Hotel retaining 49%.

The second phase involves capital contributions from Beachcomber Hotel, Yamed, and Domaine Palm Marrakech, a subsidiary of Semaris, which will provide the land for the new hotel. Following this transaction, Yamed would own 51% of Apexia Beachcomber Properties, Beachcomber Hotel would hold 40%, and Domaine Palm Marrakech would possess 9%. The new hotel is slated to be constructed adjacent to the existing Fairmont, with Beachcomber Hotel managing both establishments under the Fairmont brand as part of its management contract with the French group Accor. This expansion will increase the total number of rooms from 134 to 284.

This structure enables the Mauritian group to maintain a significant role in the hospitality sector while sharing ownership and financing. In its initial document, the board indicated that it was seeking "a sharing of investment risk with a reputable investor in Morocco." From the expected proceeds of the sale of the existing hotel to the new property company, around 700 million rupees were intended for reinvestment in the expansion project, with an equal amount allocated to reducing the group's debt.

The September publication thus serves not only as an announcement of a new hotel but also as a financial confirmation of the previously prepared scheme. NMH now indicates that the restructuring of its Moroccan assets has indeed released nearly 1.5 billion rupees in capital, explicitly citing the 150-room hotel among the intended uses. The group had mentioned in February that it was awaiting the final necessary approvals before commencing the project with its partner.

This asset rotation occurs as NMH simultaneously seeks to reduce its debt levels. At the close of the fiscal year, its net debt stood at 12.2 billion rupees, approximately 2.46 billion dirhams, with a debt ratio reduced to 40%. The group also repaid 1.25 billion rupees to the Mauritius Investment Corporation and issued 1.46 billion rupees in preference shares to Beachcomber Hospitality Investments. Throughout the fiscal year, its expenditures on hotels and other facilities amounted to 2.4 billion rupees (nearly 484 million dirhams).

As reported by barlamane.com.