Operator News
Monaco – Gaming falls three per cent at SBM but hotel sector drives overall increase
By Phil - 29 November 2023
Despite its overall revenues increasing by three per cent to €445.6m, Société des Bains de Mer saw its gaming revenues fall by the same amount to €127.8m due to ‘increased player selectivity in connection with enhanced compliance rules and an unfavorable risk in table games, mainly in the first quarter of the year.’
Hotel revenues were up six per cent to €249.4m, driven by an increase in occupancy rates and average daily rates over the summer season,
Stéphane Valeri, Deputy Chairman of Société des Bains de Mer, said: “We are satisfied with the very good attendance at our resorts this summer, which confirms the relevance of the positioning of our offers. We are seeing an increase in the average price of our services in line with inflation (wage and food) and we have therefore managed to preserve our operating margins in the hotel and restaurant sectors.
“Our half-year financial performance is strong and comparable to the previous year. In addition to the strength of the company’s balance sheet, our Group continues to provide itself with the means to achieve its legitimate ambitions in the Principality and internationally.”
“To achieve this, the governance of Monte-Carlo Société des Bains de Mer has finalised the strengthening of its management teams, with the creation of a new real estate development department, in addition to the international development department and a general management.”
Consolidated operating income was €89.1m, compared with an operating profit of €91.9m for the previous year.
Despite an increase in results in all operating segments, the consolidated operating profit of the S.B.M. Group was down slightly by €2.8m. This decrease in operating income is explained by significant reversals of provisions in the first half of the 2022/2023 financial year and by an increase in structural expenses, in line with the S.B.M. Group’s desire to invest in strengthening its management teams.
On 13 July 2023, as part of the international development strategy undertaken since the appointment of Deputy Chairman Stéphane Valeri, the S.B.M. Group also announced the signing of an agreement by its subsidiary Monte-Carlo SBM International S.àr.l., under which the company is committed to the acquisition of a hotel establishment in the Northern Alps.
It is in Courchevel 1850, in the heart of the district known as the Jardin Alpin, among the main players in the luxury hotel industry, that this strategy finds its first fulfilment with this commitment in the acquisition of the “Palace des Neiges”, with a view to a major renovation, to bring all the know-how and expertise of the S.B.M. Group in this field to life in the near future.
To identify the property and provide optimal support for this specific acquisition process in the mountains, the S.B.M. Group approached the Vallat Group, with a shared desire to carry out a hotel project of excellence. This reputable partner benefits from a very advanced knowledge of the real estate market, in the Northern Alps, and in particular in the Courchevel valley, where the family of Mr. Joffray Vallat, president of the eponymous group, has been based for decades.
