BTG Hotel’s net profits drop 6.2% this year
In the first 3 quarters of this year BTG Hotels Group, a subsidiary of Beijing Capital Tourism Group, had 2.041 billion RMB in reported operational revenue.
In the first 3 quarters of this year BTG Hotels Group, a subsidiary of Beijing Capital Tourism Group, had 2.041 billion RMB in reported operational revenue. This is a 10.96% drop compared to the same period last year. Net profit contributing to shareholders was 90 million RMB, a 6.2% drop compared to last year.
BTG Hotel Group’s revenue from their owned properties is expected to continue to decline as operational performance falls lower than expectations. From July to September their star-rated hotels in Beijing had 6.729 billion RMB in revenue, a 6.2% drop from the same period last year. However, in the third quarter their Sanya hotels received 2.65 million overnight guests, a 9.6% increase compared to the same period last year. Steady growth is expected in the number of guests and revenue from their hotels in the Nanshan Scenic Area.
In October BTG Hotels Group announced a major assets restructuring. Their general proposal included the cash-based sale of their 51% stake in Beijing Shenzhou International Travel Service Group Co Ltd to another BCT Group subsidiary Hualong Tourism Industrial Development Co. In 2013 Shenzhou International Travel had 2 billion RMB in operational revenue, a 3.86 million RMB loss (-1.04%). In 2014 they had 818 million RMB in operational revenue, a 3.35 million RMB loss (-13.44%).
Additionally, on the 26th of June BCT Hotels Group announced their plan to acquire 70% of Nanyuan Holdings shares. Nanyuan Holdings has over 40 hotels with over 5,000 rooms. Currently, negotiations between the two companies are still in progress. If BCT Hotels Group is successful in the acquisition then they will increase the number of their hotels by 1/3. This will be a big boost to their development of overall hotel operations as opposed to only centering their operations on hotel brand operation management. By growing in size BCT Hotels Group will increase their market share and brand power.(Translation by David)