Ambassador Hotel Ltd (國賓大飯店) yesterday said it is planning to open more restaurants this year and its second budget hotel under the brand name Amba (意舍) in 2015.
However, the company, which runs four hotels and various restaurant brands in Taiwan, said it is facing rising competition in the domestic food and beverage sector.
“We may have a hard year [this year],” Ambassador Hotel Taipei (台北國賓大飯店) general manager Philip Lee (李維毅) told the Taipei Times yesterday.
Despite a steady rate of room occupancy at the group’s hotels, Lee said growth of sales in the food and beverage sector — which accounts for about half of the company’s revenue — is facing the challenges of an increase in the numbers of operators in the sector and still-weak private consumption.
Private consumption has not shown a significant rebound in the first half of this year, causing the company’s catering business in Taipei to register just a slight improvement in the first two months compared with a year ago, Lee added.
The company posted NT$282.87 million (US$9.48 million) in consolidated net income, or earnings per share of NT$0.77, last year, down from NT$427.6 million, or earnings per shares of NT$1.13, in 2011, the company said in a stock exchange filing on Tuesday.
Increased expenses and losses from a corporate bond issue and the termination of a build-operate-transfer project in Nanao (南澳), Yilan County, were major factors behind the declining profit last year, the company said.