Ambassador Hotel Ltd (國賓大飯店) yesterday said its budget Amba-brand hotel in downtown Taipei, would start making a profit this year, one year after its establishment, making it another earnings driver for the company.
The news was a welcome boost for Ambassador Hotel, which in recent months has seen declining numbers of Japanese tourists — its main target customers — because the yen’s sharp depreciation has led to Japanese tourists being less inclined to travel abroad.
The hotel had an average room occupancy rate of about 80 percent in the first five months of the year, compared with 84 percent last year.
By contrast, Amba Taipei Ximen-ding (台北西門町意舍) has seen an average room occupancy rate of 90 percent over the past few months, Ambassador vice president Bill Chen (陳榮輝) said.
The company plans to launch its second Amba hotel near Songshan Railway Station in Taipei in 2015, with a third planned for Pingtung County in 2016.
After an investors’ conference yesterday, Chen told reporters that the company would rely on controlling expenses and the sales contribution from the Amba Taipei to maintain its profitability at at least the same as last year’s NT$282.87 million (US$9.38 million), or NT$0.77 per share.
The company also aims to attract more individual travelers from China, as well as domestic tourists, to increase the scope of its sales. It is also scheduled to launch its first restaurant in Hualien in August.
From January to last month, consolidated revenue stood at NT$1.3 billion, up 4.05 percent from a year ago, the company said in a stock exchange filing.