Langting-SS (01270) announced results for the year ended December 31, 2023, and the group obtained the hotel group...
According to the Zhitong Finance App, Langhing-SS (01270) announced the results for the year ended December 31, 2023. The group obtained a hotel portfolio revenue of HK$1,619 million, an increase of 66.8% year on year; profit attributable to share holders (excluding changes in fair value of investment properties and derivative financial instruments) of HK$224 million, an increase of 89.8% year on year; distributable revenue of HK$298 million, an increase of 56.2% year on year.
With the opening of China's borders and the gradual increase in conferences, trade shows and events, Hong Kong welcomed a large number of visitors, with nearly 34 million visitors in 2023, compared to only 600,000 in 2022. The average number of visitors to Hong Kong per day has risen to more than 50% of pre-pandemic levels. Furthermore, the number of overnight visitors has already exceeded 50% of the total number of visitors to Hong Kong, which is higher than the proportion of total visitors to Hong Kong before the pandemic.
This growth has driven up occupancy rates and average rents, resulting in our hotel portfolio recording an average annual increase of 61.7% in revenue from rentable rooms in 2023.
The Langham Hong Kong Hotel and Cordis Hong Kong will be used as community quarantine facilities (community quarantine facilities) /quarantine hotels for part of 2022, while Hong Kong Eaton Hotel will also provide three-month accommodation for hospital authority staff. Such measures will help mitigate the impact of the pandemic on hotel performance in 2022.
The catering business also grew in 2023. Catering revenue was 1.9 times that of the previous year, mainly due to the good business of all three Chinese restaurants, customer support for all-day restaurant buffets, and strong growth in the banquet and catering service business. This increase was mainly due to the cancellation of all social distancing policies in early 2023 and the absence of temporary closure of any restaurants in 2023.
Driven by the above average revenue for rentable rooms and improvements in the catering business, the total revenue of the hotel portfolio in 2023 increased by 66.8% compared to 2022.
Our hotel portfolio recorded an impressive operating profit turnover of 50% in 2023, with a total gross profit margin of HK$526 million before deducting global marketing expenses, which is 2.5 times that of last year.