BTG Hotels annual profit drops 4.66% in 2014
BTG Hotels’ annual revenue and net profit fell last year, at 5.87% and 4.66% respectively to RMB2.791 billion and RMB112 million.
BTG Hotels’ annual revenue and net profit fell last year, at 5.87% and 4.66% respectively to RMB2.791 billion (approx: US$451 million) and RMB112 million (approx: US$18 million). Its hotel revenue dropped 8.68% or RMB36.23 million (approx: US$5.85 million) less than the year before.
One observer thinks that its profit was declining at a visibly slower rate than in the previous year, indicating a market recovery despite the adverse effect of the “eight-clause guidelines” on hotel operations revenue as they curtail official spending.
The main sources of profit for BTG Hotels were the hotel and attractions segments. The hotel segment contributed 54.42% of the profit, at RMB92.52 million (approx: US$15 million), and attractions accounted for 49.52%, or RMB84.18 million (approx: US$14 million). Total revenue for BTG International Travel dropped 7.05% to RMB1.861 billion (approx: US$300 million) but profit leapt 123.33% to RMB900,000 (approx: US$145,344) due to huge losses in the previous year.
Beijing’s luxury hotel market was hit especially hard by the central government’s policies like the “eight-clause guidelines” and BTG Hotel’s hotel segment profit contribution fell 10% y-o-y in 2013. In 2014 this drop decreased noticeably to only 0.85%.
Meanwhile BTG’s attractions profit contribution had stable growth since 2012. Nanshan Park recorded RMB84.18 million (approx: US$14 million) last year, up 0.34% y-o-y, and its Nepal Pavilion was opened during the October National Holiday. BTG International Travel also efficiently controlled operating cost to make a turnaround and become profitable in 2014..(Translation by David)