The Grand Hotel experienced its most profitable first three quarters in a decade-and-a-half, after grossing more than NT$1.3 billion (US$42.02 million) last year, the Duen Mou Foundation (台灣敦睦聯誼會), which manages the hotel, said yesterday.
While the net income for last year was more than NT$24.89 million, it is expected to be more than NT$35.74 million this year, the foundation said in a report to the legislative Transportation Committee, which met to review the hotel’s budget yesterday.
Total revenue this year is forecast at NT$1.82 billion, including NT$1.03 billion from catering services, NT$590 million from lodging and NT$120 million from memberships, the foundation said, adding that that would represent a NT$14 million slide from last year due to declining income from catering and lodging.
Photo: Chang Chia-ming, Taipei Times
However, net profit would exceed last year’s due to cost reductions, the foundation said.
It forecast total costs this year would be NT$1.76 billion — including NT$1.40 billion in operation costs and NT$310 million in catering costs — or at least NT$20 million less than last year.
While the Grand Hotel Taipei had an occupancy rate of 67 percent last year, the Grand Hotel Kaohsiung reported only 57 percent occupancy and has incurred losses, Democratic Progressive Party (DPP) Legislator Lee Kun-tse (李昆澤) said at the meeting.
Photo: Chang Chia-ming, Taipei Times
The Kaohsiung branch lost NT$92.04 million last year and is expected to see losses of NT$78.51 million this year and NT$58.92 million next year, with an estimated cumulative deficit of NT$200 million, Lee said, urging the foundation to address the issue.
Hotel president Jackson Yang (楊守毅) said the Kaohsiung hotel this year spent NT$35 million to improve its swimming pool and ballroom, and added boardwalks.
Following the renovation, the booking rates for its restaurants have significantly increased, he said, adding that the property has only 107 guest rooms and cannot turn a profit on lodging alone.
Lee said the Taipei hotel had spent NT$500 million to renovate its facilities and encouraged the Kaohsiung branch to follow suit.
Considering that pricing at the Kaohsiung hotel equals that at a five-star hotel, it must increase its competitiveness to attract more guests, he said.
Yang said the Kaohsiung hotel would be rated next year and its goal is to be awarded five stars.
The Grand Hotel is owned by the Ministry of Transportation and Communications and opened its first branch in Taipei in 1952.
Following President Tsai Ing-wen’s (蔡英文) inauguration in 2016, former DPP legislator Chang Hsueh-shun (張學舜) became hotel chairman.
Chang stepped down last month and Deputy Minister of Transportation and Communications Wang Kwo-tsai (王國材) has since been serving as acting chairman.
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