Hotel operators turn in mixed results in Q1

MANILA, Philippines - Waterfront Philippines Inc., Shang Properties Inc. and Grand Plaza Hotel Corp. (GPHC), three listed property firms involved in the hotel business, reported mixed results in the first quarter.

In a disclosure, GPHC said its net income fell nearly nine percent to P43.81 million as total revenues dropped nearly two percent to P184.55 million.

“The main reason for the fall is due to lower food and beverage revenue but offset by higher room and other income,” GPHC said.

The rooms division improved its occupancy to 77 percent from 72 percent but average room rates fell to P3,163 from P3,221, the company said.

GPHC owns the Heritage Hotel Manila, a deluxe hotel that offers 467 rooms and facilities like restaurants, ballrooms and a casino.

Meanwhile, Waterfront’s profits fell 26 percent to P31.86 million in the first quarter due to lower occupancy rates, pushing revenues down four percent to P495.2 million.

“The reason for the decrease in revenue is due to the rapid rising of city hotels,” Waterfront said.

Waterfront operates Manila Pavilion Hotel, which is adjacent to historic sites and various entertainment hubs. It also owns Waterfront Cebu City Hotel & Casino and the Waterfront Airport Hotel & Casino Mactan in Cebu and the Waterfront Insular Hotel Davao in Davao.

For its part, Shang Properties posted a 20-percent growth in its first quarter profits to P358.3 million.

In the first three months, consolidated revenues jumped 54.9 percent to P1.32 billion, driven by higher sales from One Shangri-La Place.

“Leasing operation showed significant increment due to strong take up of leased areas of The Enterprise Center,” Shang Properties said.

Rental also increased due to the soft opening of new mall at the east wing of the Shangri-La Plaza, offsetting lower rental revenue from Edsa Shangri-La Hotel, it added.

Shang Properties, the local property unit of Malaysia’s Kuok Group, is selling units at the One Shangri-La Place, the company’s largest development to date.

The residential tower, which is targeted for completion in 2014, is composed of twin skyscrapers housing 1,304 units above the six-level Shangri-La mall.