Continental Holdings Corp (CHC, 欣陸投控) yesterday said it would consider selling its stakes in four hotels in Taiwan and abroad, but would not accept low-ball offers when offloading investments.
The Taipei-based conglomerate owns the site of the newly launched Humble Boutique Hotel (寒居酒店) in Taipei’s Zhongshan District (中山) and 55 percent stakes in both the Capri by Fraser2 in Kuala Lumpur and the upcoming Line Hotel in San Francisco. It also controls a 35 percent stake in Hotel Nikko Kaohsiung, which is to open next year.
CHC would consider selling the four properties, whose value could bring the company NT$22 billion (US$745.13 million), CHC chief executive officer Cindy Chang (張方欣) told an online investors’ conference.
Photo: CNA
The group would negotiate with serious buyers, but is unwilling to consider unfair evaluations, she said, adding that CHC is ready to pursue stable rental incomes over the long term.
The COVID-19 pandemic has wreaked havoc on hotel operations worldwide, but the company reported that net income last quarter increased more than twofold to NT$1.24 billion, or earnings per share of NT$1.5.
Revenue in the first quarter rose 57.8 percent to NT$10.02 billion year-on-year with contributions from all three subsidiaries: Continental Engineering Corp (大陸工程), Continental Development Corp (CDC, 大陸建設) and HDEC Corp (欣達環工), CHC said in a statement.
CDC, the property development arm, contributed more than 60 percent of the group’s total earnings, thanks to sales of luxury housing in Taipei’s Xinyi District (信義), it said.
In the second half of the year, CDC is expected to post a profit of NT$2.84 billion from new housing units in New Taipei City’s Sindian District (新店), it said, adding that the newly opened Humble Boutique Hotel would also begin to contribute rental income.
Government measures aimed at curbing property speculation might postpone transactions in the short term, as prospective buyers might need more time to assimilate the changes, Chang said.
However, people in need of housing would press ahead with purchases after calm returns to the market, Chang said, adding that CDC’s projects are aimed at buyers with real demand.
Next year, CDC is expected to post a profit of NT$2.39 billion from new housing in Taipei’s Shilin District (士林) and NT$2.23 billion from projects in Zhongshan District, she said.
A residential complex in Kaohsiung might generate NT$3.51 billion in sales, Chang said.
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