Formosa International Hotels Corp (FIH, 晶華國際酒店集團) is upbeat about revenue growth next quarter, thanks to the soft opening of a new facility and the comeback of a flagship property in scenic, but quake-hit Hualien County.
The group, which operates hotels under the brands of Regent Taipei (台北晶華酒店), Silks Place (晶英酒店), Just Sleep (捷絲旅) and Wellspring by Silks (晶泉丰旅), is expected to benefit from the launch of Wellspring by Silks Beitou (北投晶泉丰旅) earlier this week and the reopening of Silks Place Taroko (太魯閣晶英酒店) next month.
The group is looking at an occupancy rate of 70 percent and daily room rates of more than NT$10,000 next year for the new facility, making it another profit driver, Regent Taipei managing director Simon Wu (吳偉正) said on Thursday.
Photo: CNA
The goal is achievable given its small capacity of 100 guestrooms and short distance from the Xinbeitou MRT Station and popular tourist attractions in the vicinity, Wu said.
Over the years, Silks Place and Wellspring by Silks have been the company’s profit drivers even during COVID-19 restrictions, he said.
The hospitality company runs 16 hotels with 2,500 guestrooms in Taiwan following the addition of Wellspring by Silks Beitiou, Wu said. It is the second Wellspring by Silks after a property in Yilan County’s Jiaosi Township (礁溪).
The new hotel sits on a build-operate-transfer plot that was leased to Fubon Life Insurance Co (富邦人壽) in 2014 for 70 years. The facility has 16 floors above ground and three basement floors, FIH head communications official Ellen Chang (張筠) said.
The hospitality company is eyeing a 40 percent revenue contribution from sales of food and beverages, and is therefore introducing two new restaurants, one featuring Japanese hotpot and the other traditional Taiwanese cuisine, Chang said.
Wellspring by Silks Beitou is targeting domestic tourists and foreign business travelers who intend to relax and take a hot spring bath as a convenient escape from their busy schedule, she said.
The practice of “staycation” has gained popularity in Taiwan, as it offers local tourists the perfect blend of convenience and escape, or a holiday experience in their own cities or within a short drive from home, without the need for long-distance travel, the company said.
This trend and a strong recovery in business meetings and trade shows helped FIH to increase its profit in the first half of this year, while other peers saw a slowdown, despite its property in Hualien’s Taroko suspending operations after a massive earthquake in April, Chang said.
FIH’s net income climbed 2.13 percent year-on-year to NT$720 million (US$22.5 million) in the first six months, or earnings per share of NT$5.65, company data showed.
The results came even though the group halted price hikes for its food and beverages in the second half of last year, as Taiwanese have complained about the pinch of inflation, FIH food and beverage manager Gary Lo (羅明威) said.
Nevertheless, food and beverage revenue expanded 7 percent in the first seven months, Lo said, adding that banquet demand is expected to gain traction next quarter, which is traditionally the high sales season.
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