Thu, Dec 27, 2012 - Page 13 News List

Farglory forecasting a profitable 2014

By Amy Su  /  Staff reporter

Farglory Hotel Co (遠雄悅來大飯店), the hotel unit of the Farglory Group (遠雄企業集團), which is operating a luxury hotel in Hualien County, expects its revenues to show a strong upturn trend in 2014 after it opens hotels in Taipei and Yilan County, a company official said yesterday.

The hotel operator is listing on Taiwan’s Emerging Stock Market (興櫃市場) today with an initial public offering price of NT$18 per share. The company plans to switch its listing to the Taiwan Stock Exchange (TWSE) next year.

“We have plans to launch more hotels close to tourism attractions in Taiwan in the near future,” company president Anthony Wang (王慶祺) told reporters ahead of a pre-IPO conference for analysts.

Wang said a planned hotel in the Taipei Dome Complex is expected to open for business in 2014. Farglory Group won the contract to build the Taipei Dome Complex in 2006 on a BOT (build-operate-transfer) basis, which includes construction of an indoor stadium complex and other commercial facilities.

The Farglory Hotel in Yilan County’s Jiaosi Township (礁溪) is also scheduled to open for business that same year, and the company has been applying to the county government for a construction license, Wang added.

Like other Farglory hotels in Taiwan, Wang said the two new hotels in Taipei and Yilan would remain luxury hotels in style, but would have more flexibility in room prices as the company plans to attract a wider range of customers.

The company also plans marketing strategies and increasing sales channels that target foreign tourists as well as placing a special focus on attracting premium Chinese tour groups to hold meetings and exhibitions in the hotels.

Foreign tourists currently account for less than 10 percent of revenue at the Farglory Hotel in Hualien, the company said.

The company expects domestic tourists to contribute a further revenue momentum next year on the back of more and longer holidays set by the government, Farglory said.

In the first half of the year, the company posted a net profit of NT$4.91 million (US$168,600), or NT$0.05 per share, down 65.9 percent from NT$14.04 million, or NT$0.15 per share, for the same period last year. Last year, net profit was NT$93.74 million, or NT$0.99 per share, with NT$548 million in revenue, company data showed.

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