Two major hotel chains took a hard hit last quarter from the lingering effects of a domestic COVID-19 outbreak that started in May and prompted pandemic containment measures, but are expecting a solid recovery this quarter, supported by the government’s Quadruple Stimulus Vouchers program.
Formosa International Hotels Group (FIH, 晶華酒店集團) yesterday reported NT$1.52 billion (US$54.61 million) in combined income for last quarter, after recognizing profit from selling all of its shares in Pizzavest Co (達美樂披薩) to Australia-listed fast-food chain Domino’s Pizza Enterprises Ltd.
In the absence of the Domino’s deal, net income would have been a meager NT$54 million, or a 75.9 percent slump from the same period last year, FIH said.
The downturn was most evident at Regent Taipei (台北晶華), the group’s flagship property, which registered net losses of NT$32 million last quarter, due mainly to a months-long ban on dine-in services.
In the first three quarters of this year, FIH accumulated NT$1.92 billion of net income, or earnings per share of NT$14.78, it said.
Separately, FDC International Hotels Corp (雲品國際) on Thursday reported losses of NT$74 million during the July-to-September quarter, or losses per share of NT$0.99.
Cumulative losses widened to NT$1.34 per share in the first three quarters, it said.
FDC suspended accommodation operations at Palais de Chine Hotel (君品酒店) and Fleur de Chine Hotel (雲品溫泉酒店) after a nationwide level 3 COVID-19 alert was implemented in May.
The temporary closures accounted for the disappointing performance, FDC said, adding that it has boosted hygiene protocols after reopening accommodation and restaurant services in July and August.
Business improved significantly this quarter, after Taiwan brought the COVID-19 situation under control, allowing people to confidently resume travel and gatherings, FDC said.
The group expects sales to gradually recover to the level prior to the COVID-19 pandemic, FDC said.
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