With the world coming out of the shadows of the financial criris, its holiday time for travellers across the globe.This means good news for hotels who are seeing a sudden rise in their occupancy levels and hence profits. Hotelierindia.com presents a list of the top hotels who have recently declared their profits for FY 2010.
1. Hotel Leelaventure
Hotel Leelaventure, a premium luxury brand hotel group, has posted 786% rise in net profit at INR9.24 crore for the first quarter ended June 30, 2010 as against Rs 1.04 crore in the corresponding period last year.
The company’s income increased 25 per cent at Rs 105.81 crore in Q1, 2011 from Rs 84.71 crore in the comparable quarter of the previous year.
The promoters of the company have agreed to subscribe to the preferential allotment of one crore shares at pricing determined by Sebi regulations.
With a view to capitalise on the existing land parcel in Pune and due to the lagging Pune Hotel scenario, the company has also decided to enter into a joint development agreement with a reputed local builder for the development of the said land into high-end residential commercial property.
The Leela Group has a pan-India presence with six hotels, namely Mumbai, Bangalore, Goa, Kovalam, Udaipur and Gurgaon with over 1600 guest rooms.
2. Indian Hotels Company
Increase in occupancy levels led to a growth of 57% in Indian Hotels Company’s (IHCL) net profit to INR60 crore for the fourth quarter ended March 31, 2010 against INR38 crore recorded last year.
The total income of the company increased 6% to INR443 crore.
According to Mr Anil P. Goel, IHCL’s Executive Director-Finance, last year’s turnover included INR59 crore of insurance claims that the company had received for the renovation and reconstruction work in its flagship property Taj Mahal Palace & Tower, Mumbai.
The property was one of the sites under siege by armed gunmen during the November 2008 terror.
The average occupancy in the fourth quarter across IHCL properties was 76% against 64% registered last year. The peak room rates remained INR9,700 against INR10,300 last year, said Mr Goel.
In the current financial year, the company will add 1,647 rooms through 13 hotels taking its room inventory to 2,469 from the current 822 rooms. The capital expenditure in FY11 will range between INR 250-Rs 260 crore.
3. Kingdom Holding
Kingdom Holding, the investment company controlled by Saudi Prince Alwaleed bin Talal, said their second-quarter profit advanced 47% on revenue from global hotel operations and units inside Saudi Arabia.
Net income increased to $36.1 million in the year-earlier period, the Riyadh-based company said in a statement to the Saudi bourse.
The company is “experiencing improving results from its hotel operations and its domestic entities,” it said.
Kingdom Holding restructured some of its management and business to drive growth after struggling through the global financial crisis.
Sarmad Zok, chief executive officer of the lodging unit Kingdom Hotel Investments, was appointed to the board of Kingdom Holding and its investment committee.
Kingdom Holding had lowered its share capital by 41% earlier this year. It also offered to purchase the rest of the shares in Kingdom Hotel Investments on March 15. The shares of the hotel company were delisted from Nasdaq Dubai last month.
4. Marriott International
Marriott International, the largest U.S. hotel chain, said second-quarter profit rose by 42% and increased its full-year earnings forecast on improving travel demand.
Net income climbed to $119 million from $84 million, a year earlier, the Bethesda, Maryland-based company said in a statement.
The lodging industry has shown signs of recovery after the U.S. recession crimped travel demand last year.
Occupancy in the top 25 markets rose to 62% through May from 58% during the comparable year-earlier period.
Second-quarter revenue climbed 7.7% to $2.77 billion. Revenue per available room, or revpar, rose 7.5% on a constant-dollar basis for company-operated properties in North America. Outside North America, revpar gained 9.8%.
The company, owner of the upscale JW Marriott Hotels and luxury Ritz-Carlton lines, expects to open more than 30,000 rooms this year.
Its focus is on expanding abroad. The hotelier plans to add at least 21 hotels in China in the next three years and double its rooms in Europe to 80,000 by 2015.
5. InterContinental Hotels
InterContinental Hotels posted a sharp rise in profits, and the Asia Pacific region is leading the group out of the global recession.
The hotelier, which is the largest in the world – operating brands like InterContinental, Holiday Inn and Crowne Plaza – saw a 15% jump in year-on-year profits during the first quarter of this financial year, and the company’s outlook looked positive.
Overall, InterContinental Hotels posted an $83 million operating profit for the first 3 months of this year, which beat a $79.2 million expectation from some analysts. Revenue for the quarter also rose by 3% to $362 million.
The group also saw an increase in RevPAR of 0.2% during the quarter, which is the first time in the last year-and-a-half, while RevPAR increased 4.1% in just March. Leading the hotelier in RevPAR growth was Asia Pacific with a 10% rise during the quarter and a 22.2% rise in Greater China.
6. LaSalle Hotels
LaSalle Hotel Properties has reported net income to common shareholders of $8.0 million per diluted share for the quarter ended June 30, 2010, compared to net income of $8.2 million per diluted share for the second quarter of 2009.
For the quarter ended June 30, 2010, the Company generated funds from operations (“FFO”) of $35.9 million versus $35.6 million for the second quarter of 2009. On a per diluted share basis, FFO for the second quarter was $0.52, compared to $0.70 for the same period of 2009.
Net income and FFO for the prior year included $5.7 million of after-tax income related to the recognition of prior termination cure payments from the previous manager of the Company’s Seaview Resort and a $1.0 million fee for exchanging Series C Cumulative Redeemable Preferred Shares of Beneficial Interest for Series G Cumulative Redeemable Preferred Shares of Beneficial Interest (the “Preferred Share Exchange”).
Room revenue per available room (“RevPAR”) in the second quarter of 2010 was $146.60, which was an increase of 7.4 percent compared to the same period of 2009. Average daily rate (“ADR”) increased 2.1 percent from the second quarter of 2009 to $185.44, while occupancy increased 5.2% to 79.1%.
7. Host Hotels
Lodging REIT Host Hotels & Resorts has posted a profit for the second quarter, with an increase in funds from operations that came in above the Street view.
The company’s results reflect occupancy growth coupled with an improvement in room rates since the second quarter of 2008.
The Bethesda, Maryland-based company’s second-quarter net income available to common shareholders was $13 million, compared to a loss of $70 million in the year-ago quarter. On a per share basis, earnings totalled $0.02, versus a loss of $0.12 incurred in the same quarter of last year.
Income from continuing operations amounted to $20 million or $0.02 per share, compared to a loss of $11 million or $0.02 per share in the previous year.
Quarterly revenues totalled $1.11 billion, 6% higher than the prior-year’s revenue of $1.05 billion. Ten Wall Street analysts had a consensus revenue estimate of $1.07 billion for the quarter.
Comparable hotel revenue per available room or RevPAR for the quarter grew 8.1%, driven by an occupancy increase of six percentage points, while the average daily rate fell 0.7%. The increase in RevPAR was significantly affected by an increase in transient demand of 8.1%, combined with an improvement in average room rate of 2.8%. Group demand increased 10%, partially offset by a 4.7% decline in rate.
8. Starwood Hotels & Resorts
An increase in hotel demand, particularly at its luxury brands, propelled Starwood Hotels & Resorts Worldwide to a sharply higher first-quarter profit.
The results handily beat Wall Street’s expectations.
The owner of the Sheraton, W, Westin and other hotel brands also raised its full-year earnings forecast and gave a second-quarter profit guidance. Both are expected to top analysts’ estimates.
Starwood’s stock soared $1.97, or 3.7%, to $55.24 in midday trading after reaching a new 52-week high of $55.64 earlier.
Many companies have started to see demand increase of late as the economy improves. For the hotel industry, both leisure and business travellers are starting to return, which is filling more rooms.
Starwood, based in White Plains, N.Y., posted a profit of $30 million, or 16 cents per share, for the three months ended March 31.
That compares with earnings of $6 million, or 3 cents per share, a year ago. Starwood also reported an increase in a key revenue figure.
9. Asian Hotels (North)
Asian Hotels North reports net profit of INR26.27 crore in the March 2010 quarter.
Asian Hotels North has reported a net profit of INR 26.27 crore in the quarter ended March 2010. The company discontinued the operations of Kolkata and Mumbai undertaking with effect from 31 October 2009. Hence, the quarter ended March 2010 was not comparable with the previous quarter ended March 2009.
10. Gulf hotels
Gulf Hotels Group had a strong start to the year with a more than seven percent increase in first-half profit.
The group, which owns and operates the Gulf Hotel, Gulf Convention Centre, Gulf Executive Residence, Gulf Executive Offices and Gulf Brands International, posted a net profit of $17.63 million for the first half of the year.
Chief executive officer Aqeel Raees said the results were achieved in a very difficult trading environment which was affected by the global financial crisis.
