(MENAFNEditorial) Miramar Hotel and Investment Company, Limited Announces 2017 Annual Results
HONG
KONG, CHINA - Media OutReach -19 March 2018
- Miramar Hotel and Investment Company, Limited ("Miramar" or "the Group", HKSE
stock code: 71) announced today the annual results for the year ended 31 December
2017.
HK$ Million
For the year ended 31 December
2017 | 2016 | Change |
Revenue 3,186
3,118 2%
Profit attributable to shareholders
1,519 1,277
19%
Underlying profit attributable to shareholders
764 580
32%
Basic underlying earnings per share (HK$)
1.27 1.00
27%
Dividend per share (HK Cents) Final dividend per share
Interim dividend per share
36 23
34
20
5.9% 15%
The Group's revenue for the Reporting Period amounted to HK$3,186 million,
representing an increase of 2% compared to the financial year ended 31 December
2016 (2016: HK$3,118 million).
Profit attributable to
shareholders for the reporting period increased by 19% to HK$1,519 million
(2016: HK$1,277 million). This growth is mainly attributable to the
satisfactory performance of both the Property rental segment and Hotels and
serviced apartments segment, with additional contributions from the one-off net
gain upon disposal of a property in Central, revaluation gain of investment
properties and net gain on disposal of securities.
Excluding the increase of HK$723 million in the
fair value of our investment properties and the one-off net gain from the disposal
of a property in Central of HK$32 million, the basic underlying profit surged
significantly by 32% to approximately HK$764 million (2016: HK$580 million).
The basic underlying earnings per share increased by 27% to HK$1.27 (2016:
HK$1.00).
The Board of Directors recommended the payment of a final dividend of 36 Hong Kong cents per share
(2016: 34 Hong Kong cents), amounted to a full-year dividend
of 59 Hong Kong cents per ordinary share
(2016: 54 Hong Kong cents) with an interim dividend of Hong Kong 23 cents per share (2016: 20 Hong
Kong cents).
The economic performance of Hong Kong in 2017
continued its advance. According
to the Hong Kong Tourism Board, overnight
visitor arrivals to Hong Kong increased by 5% year-on-year. The
management has leveraged on these favorable economic conditions by actively
enhancing the tenant mix of our shopping mall and office tower. Continuous
efforts are also spent to boost service quality and enrich customer experience.
At the same time, agile revenue strategies have been adopted with prudent cost
control measures. These have resulted in solid performance in our hotels and
services apartments as well as property rental segments. For the food and
beverage operation segment, we have re-aligned our business strategy in
response to the market changes impacting our locations and brand
considerations.
Hotels and Serviced Apartments Business
During the reporting period, Hotels and Serviced Apartments of the Group
benefited from visitor arrivals and overnight visitor arrivals returning to
growth. Revenue has increased by 4% to HK$662 million compared to
last year. Moreover, the management has adopted proactive and aggressive
promotion and pricing strategy which increased the attractiveness of hotel room
and food and beverage. Earnings before interest, taxes, depreciation and
amortisation ("EBITDA") amounted to HK$248 million, representing an increase of
approximately 11%. During the year, the occupancy rate and
average room rate of both The Mira Hong Kong and Mira Moon rose satisfactorily.
The increase in the occupancy rate of both hotels at around 7% is higher than
those among hotels in the same district.
Property Rental Business
The
Group's Property Rental business grew steadily in 2017. Property Rental business
recorded revenue of HK$859 million and EBITDA of HK$754 million. Both revenue
and EBITDA rose by 4% compared to last year.
The Group has
planned for years and finally completed the strategic integration for the four
core properties, namely Miramar Shopping Centre, Mira Mall, Miramar Tower and
The Mira Hong Kong, located at a golden shopping area in Tsim Sha Tsui. With
1.2 million square feet, the properties have been rebranded as Mira Place which
has become the new landmark of Tsim Sha Tsui since 2 June 2017. We trust such
integration and synergy will bring our consumers a brand-new and
all-encompassing experience that covers shopping, entertainment, dining and
even upscale accommodations and life style.
The Group continued to optimise the tenant mix of its office and successfully
attracted more semi-retail tenants. Mira Place meticulously
selected brands in Hong Kong and around the world, introduced pop-up stores and brought in
different types of flagship shops to strengthen the retail mix of our shopping
mall. By proactively conducted various
kinds of promotional events, the mall's traffic rose by 6% on average year-on-year, which
boosted tenants' sales revenue by 13%.
Mira Place is the Group's major investment properties. Due to the
increase in revenue from Mira Place under the on-going asset optimisation
project, the Group's investment property portfolio recorded a net
increase in fair value of HK$723 million, at the rate similar to last year,
amounting to HK$14.1 billion as at 31 December 2017.
Food and Beverage Business
The Food and Beverage business recorded revenue of HK$394 million and
EBITDA of HK$23 million respectively, dropped 12% and 34% respectively due to
the strategic revamp of certain brands.
Cuisine Cuisine and Tsui Hang Village have achieved good performance and
contributed stable revenue to the Group.
Food and Beverage business still faces intense challenges such as high
rental costs, high labor costs and shortage of labor. The Group is dedicated to
improve operating efficiency, continue to seize opportunities to properly implement its multi-brand
strategy, improve food and services quality of our outlets and introduce new
dishes and new themes at regular intervals to respond to market trends.
Travel Business
Revenue from Travel segment increased by 6% to HK$1,272 million compared to
last year. The increase was mainly due to the rise in income from tour to Japan
and Europe. EBITDA amounted to HK$29 million.
Corporate Finance
The
Group maintains its conservative and sound financial policy with a very high
level of liquidity.
Gearing,
calculated by dividing consolidated total borrowings by the consolidated total
shareholders' equity, was only 0.1% as at 31 December 2017 (31 December 2016:
5%).
As
the Group is buttressed by a large cash pool to fund its development program in
the foreseeable future, we have terminated some credit arrangements as
appropriate to reduce financial expenses during the year. At 31 December 2017,
total available credit facilities amounted to approximately HK$1.3 billion (31
December 2016: approximately HK$2.7 billion), 0.2% (31 December 2016: 28%) of
which have been utilised. At 31 December 2017, consolidated net cash were
approximately HK$3.4 billion (31 December 2016: HK$2.1 billion), of which HK$3
million comprised secured borrowings (31 December 2016: HK$14 million).
Business
Outlook
Mr. Lee concluded, "Looking
forward, mainland China is expected to continue providing stable political and
prosperous economic settings for Hong Kong. While the financial markets may see
greater volatility under the regime of rising interest rates and clouded by
possible international trade clashes, the balancing forces of low-lying
inflation and still-robust consumer confidence should support stable and
sustained global growth, thereby providing a strong buttress to Hong Kong's
economy. I shall lead the Group management in our unreserved and incessant
drive to advance our core businesses, by enhancing service quality and
operational efficiency as well as grasping appropriate investment opportunities
to broaden revenue sources with the aim of raising profits and shareholders'
values."
About
Miramar Hotel and Investment Company, Limited
Established in Hong Kong
in 1957, Miramar Hotel and Investment Company, Limited (Miramar Group) is a
group with a diversified service-oriented business portfolio comprising stylish
hotels and serviced apartments, property rental, food and beverage, and travel
services in Hong Kong and Mainland China. Miramar Group has been listed on the
Hong Kong Stock Exchange since 1970 (HKEx Stock Code: 71) and is a member of
Henderson Land Group.
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