Taiwan’s two major hospitality service providers expressed caution following a noticeable decline in consumer confidence in the wake of US tariff hikes and the local currency’s sharp appreciation.
FDC International Hotels Corp (雲品國際) fared relatively well, with consolidated revenue last month rising 5.49 percent to NT$165 million (US$5.44 million) — the second-highest April performance in its history.
Cumulative revenue in the first four months was a record NT$905 million, edging up 0.61 percent from a year earlier, it said.
Photo: Liu Ping-chuan, Taipei Times
The New Taipei City-based conglomerate attributed the increase to strong domestic demand during the Tomb Sweeping Day and Children’s Day holidays, allowing occupancy rates at flagship properties — the Fleur de Chine Hotel (雲品溫泉酒店) near Nantou County’s Sun Moon Lake (日月潭) and the Palais de Chine Hotel (君品酒店) near Taipei Railway Station — to remain stable.
Enhancements in dining services at the Taipei property’s executive floors led to a 26.1 percent advance in executive floor occupancy, contributing to higher room rates, it added.
Furthermore, FDC last month expanded its food and beverage operations in Taitung, which helped overall revenue, it said.
The group said it is looking to benefit from Mother’s Day tomorrow and Dragon Boat Festival on May 31.
Orders for zongzi (粽子, glutinous rice dumplings) have surpassed its annual target by 60 percent thus far to 80,000 pieces, aided by a surge in corporate demand for zongzi gift boxes, the company said.
FDC is eyeing a further business boost in hotel rooms from the annual Computex Taipei, one of the world’s leading technology exhibitions, later this month.
However, the local currency’s recent sharp appreciation could weigh on Taiwan’s inbound tourism, which would grow more expensive and less competitive to foreign visitors, FDC chairman Emile Sheng (盛治仁) said at a public function earlier this week.
Hotel operators have to respond to worst-case scenarios and seek to differentiate themselves from its rivals, Sheng said.
By contrast, restaurant operator Hi-Lai Foods Co (漢來美食) yesterday posted a revenue of NT$410 million for last month, down 15.77 percent from one month earlier, as consumer confidence softened amid US trade policy uncertainty.
US tariff hikes and local share price corrections took a toll on dining activity, the company said.
However, banquet demand at Grand Hi-Lai Hotel (漢來大飯店) in Taipei’s Nangang District (南港) remained strong, with a utilization rate of nearly 70 percent this year, it said.
Its Roast Duck restaurant saw revenue more than double, while its Cantonese Jade Garden Restaurant has started to generate profit, it said.
The company’s popular Island and Harbour buffet restaurants have fully been booked for Mother’s Day, it said.
UNPRECEDENTED PACE: Micron Technology has announced plans to expand manufacturing capabilities with the acquisition of a new chip plant in Miaoli Micron Technology Inc unveiled a newly acquired chip plant in Miaoli County yesterday, as the company expands capacity to meet growing demand for advanced DRAM chips, including high-bandwidth memory chips amid the artificial intelligence boom. The plant in Miaoli County’s Tongluo Township (銅鑼), which Micron acquired from Powerchip Semiconductor Manufacturing Corp (力積電) for US$1.8 billion, is expected to make a sizeable capacity contribution to the company from fiscal 2028, the company said in a statement. It would be an extended production site of Micron’s large-scale manufacturing hub in Taichung, the company said. As the global semiconductor industry is racing to reach US$1 trillion
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan’s food delivery market could undergo a major shift if Singapore-based Grab Holdings Ltd completes its planned acquisition of Delivery Hero SE’s Foodpanda business in Taiwan, industry experts said. Grab on Monday last week announced it would acquire Foodpanda’s Taiwan operations for US$600 million. The deal is expected to be finalized in the second half of this year, with Grab aiming to complete user migration to its platform by the first half of next year. A duopoly between Uber Eats and Foodpanda dominates Taiwan’s delivery market, a structure that has remained intact since the Fair Trade Commission (FTC) blocked Uber Technologies Inc’s
Memory chip stocks extended their losses yesterday after Alphabet Inc’s Google publicized research that could allow more efficient use of the storage needed for artificial intelligence (AI) development. SK Hynix Inc and Samsung Electronics Co, South Korean leaders in the market, fell more than 6 percent and about 5 percent respectively in Seoul. In the US, Micron Technology Inc, Western Digital Corp and Sandisk Corp slid more than 2 percent in pre-market trading, after they all closed lower on Wednesday. Memory companies have been on a tear in recent months as the rapid development of AI infrastructure triggered a spike in chip
RSS