Kosmopolito Hotels International (and its
subsidiaries) has reported encouraging financial performance for
the financial year ended 31 March 2012 with Hong Kong remaining
the key driver.
The group’s gross profit for the year grew
by 37.8% to HK$650.7 million and gross margin jumped to 59.4%,
primarily driven by the strong revenue growth in Hong Kong and
moderate improvement in operating margins.
Revenue for the year was HK$1,096.1 million, up 26.4% from last
year, mainly driven by 38.3% year-on-year increase in the room
revenue in Hong Kong.
- Net profit of HK$605.1 million was
recorded for the group for the year, representing an increase of
190.3% from last year.
- Adjusted EBITDA reached HK$509.4
million for the year, representing 40.5% year-on year increase
driven by 23.9% growth in RevPAR and 11.5% growth in the number of available room nights
and compounded by 4.7% point increase in adjusted EBITDA margin.
- One-off gain of HK$380.3 million was recorded on the
disposal of Central Park Hotel, located at Hollywood Road, Hong Kong, during the year.
- Hotel revaluation surplus as of
31 March 2012 of HK$7,749.9 million, increased from HK$5,978.8
million, predominantly attributable to the appreciation of the
Hong Kong assets.
- Adjusting for revaluation surplus, net
assets attributable to shareholders per share increased by 25.8%
to HK$5.58 as at 31 March 2012.
- The Board proposed a
final dividend of HK 10 cents per share, together with the interim
dividend of HK 2 cents per share, bringing the total dividend
payout for the year to HK 12 cents per share. This represents
39.7% of total distributable profit, which compares with 38.5%
In addition to
recording strong operational performance for the existing hotels,
the Group has also completed several significant transactions,
namely the acquisition of Shepherd’s Bush Pavilion, London in
September 2011, the acquisition of the industrial building “Big
Orange” in Hong Kong in April 2012, and the disposal of Central
Park Hotel located at Hollywood Road, Hong Kong in November 2011.
Shepherd’s Bush Pavilion will be converted into the Dorsett
Regency London with 322 rooms; and “Big Orange” will be converted
into the Silka Tsuen Wan with 420 rooms.
economic conditions are expected to become more challenging in the
coming year in view of the European economic crisis and the
expected slowdown of economic growth in China.
According to the
latest Pacific Asia Travel Association’s (PATA) forecasts, it is
projected that there will be additional 8.7 million arrivals from
Europe to Pacific Asia by 2013, increasing from 34.5 million in
2009 to over 43 million arrivals. Overall, arrivals growth in the
Asia Pacific region is expected to be close to double that of the
For KHI, over 60% of the group’s customers are from
Asia. Therefore KHI is in a relatively good position to capture
this continually growing Asia travel market. The group will
continue with its “Chinese Wallet Strategy” driving further
Ms. Winnie Chiu, President and Executive Director of KHI, said,
“Construction is actively underway for Grand Dorsett Chengdu,
Dorsett Regency Singapore and Dorsett Regency Tsuen Wan. Together
with the newly acquired Silka Tsuen Wan and Dorsett Regency
London, the group is scheduled to grow its total room number to
over 7,000 in the upcoming years. The expansion of its portfolio
of operating hotels is expected to generate significantly larger
cash flow stream for the group.”
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