Formosa International Hotels Corp (晶華國際酒店集團) yesterday proposed a cash dividend of NT$4.39 per share based on last year’s profits, even though the COVID-19 pandemic and international travel bans played havoc at some properties.
The dividend proposal was announced after a board meeting recognized net income of NT$732.86 million (US$25.75 million) for last year, or earnings per share of NT$5.18, the Taipei-based hospitality group said.
The results represent a 47.08 percent retreat from the level in 2019, attributable mainly to a high comparison base, due to the divestment of a property in Tokyo and the negative effects of the pandemic, it said.
Taiwan has since March last year closed its borders to foreign tourist arrivals, affecting hotels that heavily depend on international business and leisure travelers.
Formosa International, which owns the Regent Taipei (台北晶華酒店) and operates hotels under the Silks Place (晶英酒店) and Just Sleep Hotel & Resort (捷絲旅) brands, said that it would set aside NT$559.18 million for dividend payouts.
Despite a tough operating environment, the group said it has retained its leadership position in terms of revenue per available room (RevPAR) at its properties in Tainan and Kaohsiung, and Hualien and Yilan counties.
RevPAR averaged NT$6,344 at Silks Place Taroko (太魯閣晶英酒店) in Hualien, higher than the Grand Cosmos Resort Ruisui’s (瑞穗天合) NT$5,122, Farglory Hotel’s (遠雄悅來大飯店) NT$2,177 and Chateau de Chine Hualien’s (翰品酒店) NT$1,850, the group said, citing government data.
The group’s Silks Place properties in Yilan, Tainan and Kaohsiung all outperformed peers with regards to RevPAR, thanks to their strong appeal to domestic travelers, it said.
Formosa International said that it aims to increase its market share in southern Taiwan by opening a new Just Sleep outlet at the Ten Drum Culture Village (十鼓仁糖文創園區) before the summer vacation.
The group is optimistic that business abroad would improve later this year, as the world is on course to recover from the pandemic, it said.
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