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June 21, 2012

Asian hotel group Kosmopolito reports revenue surges for fiscal 2012

Kosmopolito Hotels International (KHI) has posted 26.4% growth in revenue to HK$1,096m ($141.24m) in the 2012 financial year, driven by a 38.3% year-on-year rise in room revenue in Hong Kong.

By admin-demo

Kosmopolito Hotels International (KHI) has posted 26.4% growth in revenue to HK$1,096m ($141.24m) in the 2012 financial year, driven by a 38.3% year-on-year rise in room revenue in Hong Kong.

The hotel group’s net profit surged 190.3% to HK$605.1m ($77.98m) in the financial year ended 31 March 2012, and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled HK$509.4m ($65.64m), representing a 40.5% year-on-year increase.

The growth in EBITDA was driven by a 23.9% rise in revenue per room and a 11.5% gain in the number of available room nights, and compounded by a 4.7% point increase in adjusted EBITDA margin.

Kosmopolito said that a one-off gain of HK$380.3m ($49m) was recorded on the disposal of Central Park Hotel situated at Hollywood Road in Hong Kong.

In view of strong revenue growth in Hong Kong and moderate improvement in operating margins, the group’s gross profit and gross margin soared 37.8% and 59.4% respectively.

In the financial year 2012, the Asian hotel group acquired Shepherd’s Bush Pavilion in London and industrial building ‘Big Orange’ in Hong Kong.

"The hotel group’s net profit surged 190.3% to HK$605.1m ($77.98m) in the financial year ended 31 March 2012."

Kosmopolito said it will convert Shepherd’s Bush Pavilion into the Dorsett Regency London with 322 rooms and ‘Big Orange’ into the Silka Tsuen Wan with 420 rooms.

KHI president and executive director Winnie Chiu said construction is well 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," Chiu added.

KHI currently operates 16 hotels in Hong Kong, Shanghai, Wuhan, Kuala Lumpur, Labuan and Johor Bahru.

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