Lux Hospitality has signed deals to manage two five star properties on Reunion Island.

The move means the company will manage a new five-star resort in St Philippe in the south of the island, as well as Hotel Le Recif, which was previously owned by the group and recently sold.

Construction works have already begun at the new five star resort at St Philippe, which comprises 82 pool villas and is scheduled to open in 2016, while the company will continue to manage and market Hotel Le Recif - a Creole-inspired hotel, located close to St Gilles.

The new contracts signal the next stage in growth for Lux Hospitality, following its expansion outside of the Indian Ocean into China in 2014 with the opening of Lux Tea Horse Road in Lijiang, China.

Chief executive Paul Jones said in addition to boosting the group’s growth, the move was designed to increase tourism to the Indian Ocean island.

“The sale of Hotel Le Recif as well as the signature of the two new management contracts is consistent with the growth strategy of Lux Hospitality, managing resorts and hotels rather than owning the assets, increasing global brand awareness and the exposure of Lux across markets,” he added.

“We are also keen to contribute to the development of the tourism sector on Reunion Island… we are determined to boost this industry on the island.”