Leofoo Development Co’s (六福) stock has soared nearly 15 percent this week, bucking the tourism sector’s 2.66 percent decline, after it won regulatory approval to rebuild a old hotel in Taipei which could significantly boost its value.
The Hsinchu-based tourism group closed up another 0.54 percent to NT$7.45 yesterday, while the TAIEX shed 0.82 percent to 10,474.61 points amid jitters over the US-China trade dispute.
The stock advanced even though the company reported losses of NT$84.41 million (US$2.71 million) in the first quarter, thanks to the approval of its plan to regenerate its 47-year-old Leofoo Hotel (六福客棧) at the intersection of Songjiang Road and Changchun Road in Taipei.
The group, which also operates the Courtyard by Marriott Taipei (六福萬怡), Leofoo Resort (六福莊), Leofoo Residences (六福居), Leofoo Village Theme Park (六福村) and other recreational facilities, might see Leofoo Hotel’s property value swell to NT$6 billion or higher, property analysts said.
The facility sits on a 380 ping (1,254m2) lot and qualifies for favorable development terms to encourage regeneration of old and dangerous buildings, analysts said.
The project might see its floor area ratio jump 620 percent, allowing Leofoo to construct a 20-story building with 6,000 ping of floor space, REPro Knight Frank researcher Andy Huang (黃舒衛) said.
The property’s value could surge to NT$7 billion if Leofoo decides to build an upscale unit, Huang said.
Leofoo said it has not drawn an agenda for the renewal project and has to seek a building permit within six months or apply for an extension.
Last year, the group was in talks with potential partners at home and abroad to renovate the 226-room hotel for fear that urban renewal bids could drag on.
The conglomerate has sought to strengthen its balance sheets and diversify its income sources by pulling out of contracts for new ventures and closing down unprofitable venues.
It shut Westin Taipei (台北威斯汀六福皇宮) in December last year and terminated a contract to build a resort hotel in Tainan months earlier.
The portfolio adjustments are intended to help the group withstand the structural challenges for the hospitality and leisure industry in Taiwan, Leofoo Development chairman Lulu Chuang (莊豐如) has said.
The company has instead focused on expanding into the fast-growing packaged food market to boost sales.
Meanwhile, tourist visits at Leofoo Village Theme Park rose 22 percent in the first quarter and could hit 1.6 million people this year, or up 14 percent from last year, it said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday said its materials management head, Vanessa Lee (李文如), had tendered her resignation for personal reasons. The personnel adjustment takes effect tomorrow, TSMC said in a statement. The latest development came one month after Lee reportedly took leave from the middle of last month. Cliff Hou (侯永清), senior vice president and deputy cochief operating officer, is to concurrently take on the role of head of the materials management division, which has been under his supervision, TSMC said. Lee, who joined TSMC in 2022, was appointed senior director of materials management and
Nvidia Corp CEO Jensen Huang (黃仁勳) on Thursday met with US President Donald Trump at the White House, days before a planned trip to China by the head of the world’s most valuable chipmaker, people familiar with the matter said. Details of what the two men discussed were not immediately available, and the people familiar with the meeting declined to elaborate on the agenda. Spokespeople for the White House had no immediate comment. Nvidia declined to comment. Nvidia’s CEO has been vocal about the need for US companies to access the world’s largest semiconductor market and is a frequent visitor to China.
MAJOR CONTRIBUTOR: Revenue from AI servers made up more than 50 percent of Wistron’s total server revenue in the second quarter, the company said Wistron Corp (緯創) on Tuesday reported a 135.6 percent year-on-year surge in revenue for last month, driven by strong demand for artificial intelligence (AI) servers, with the momentum expected to extend into the third quarter. Revenue last month reached NT$209.18 billion (US$7.2 billion), a record high for June, bringing second-quarter revenue to NT$551.29 billion, a 129.47 percent annual increase, the company said. Revenue in the first half of the year totaled NT$897.77 billion, up 87.36 percent from a year earlier and also a record high for the period, it said. The company remains cautiously optimistic about AI server shipments in the third quarter,
Hypermarket chain Carrefour Taiwan and upscale supermarket chain Mia C’bon on Saturday announced the suspension of their partnership with Jkopay Co (街口支付), one of Taiwan’s largest digital payment providers, amid a lawsuit involving its parent company. Carrefour and Mia C’bon said they would notify customers once Jkopay services are reinstated. The two retailers joined an array of other firms in suspending their partnerships with Jkopay. On Friday night, popular beverage chain TP Tea (茶湯會) also suspended its use of the platform, urging customers to opt for alternative payment methods. Another drinks brand, Guiji (龜記), on Friday said that it is up to individual
RSS