Formosa International Hotels Corp (FIHC, 晶華國際酒店集團) yesterday said it is counting on strong seasonal demand in the catering sector this quarter to lift its business in the second half of the year, following flat profitability in the first six months.
FIHC, which operates the Formosa Regent Taipei (台北晶華酒店), posted NT$565.26 million (US$18.87 million), or NT$5.85 per share, in net profit for the first half, slightly improving from a net profit of NT$560.33 million, or NT$5.8 per share, a year earlier, the company said in its filing to the Taiwan Stock Exchange.
In the April-to-June period, net income totaled NT$243.17 million, or NT$2.52 per share, down 3.75 percent from a net profit of NT$252.64 million, or NT$2.61 per share, during the same period last year, statistics show.
The sluggish global economic sentiment was one of the major reasons for the company’s flat business in the first half, with the depreciation of the yen also dragging down the number of Japanese visitors to Taiwan during the period, which affected the business of luxury tourist hotels like the Formosa Regent Taipei.
However, strong revenue from the hotel operator’s food and beverage business, which grew by 10 percent from last year, as well as the rise of its budget-priced hotel brand Just Sleep (捷絲旅), helped FIHC post year-on-year growth in profitability in the first six months.
The hotel operator said strong seasonal demand for its catering business this quarter, driven by Father’s Day and the Chinese Lovers’ Day celebrations, may help boost the company’s business in the second half of this year.
Furthermore, the anticipated rebound of international business visitors next month and in October — the traditional peak periodfor international business arrivals — may improve the Formosa Regent Taipei’s room sales.
FIHC, which currently operates three brands — Regent Hotel & Resorts, Silks Place (晶英酒店) and Just Sleep — said it would continue its domestic and international expansion plans.
The hotel operator is set to launch three more hotels — in Greater Kaohsiung, Hualien and Yilan Counties — under the Just Sleep brand in the second half of this year.
Other than Just Sleep, FIHC aims to launch another hotel under the Regent brand next year in Porto Montenegro, Montenegro.