Central Plaza Hotel maintains dividend rate despite tough 2014
CENTRAL PLAZA Hotel (CENTEL) has proposed a Bt0.40-per-share dividend payment, the same as last year, as the result of sustained business growth.
The company reported revenue of Bt18.2 billion last year, an increase of Bt826 million year on year, despite being affected by the tense political situation and declining consumer demand during most of 2014.
Suthikiati Chirathivat, chairman of the board of Central Plaza Hotel, said the situation in Thailand during the past year had a significant negative impact on the number of international tourist arrivals, which totalled 24.78 million, down 6.6 per cent from 26.55 million in 2013. This resulted in total revenue of Bt1.15 trillion, a decrease of 4.93 per cent compared with Bt1.21 trillion in 2013.
During 2014, although CENTEL faced problems resulting from the tense political situation that took place in Bangkok’s central business district together with declining consumer demand for most of the year, the company still reported satisfactory operating results.
For the fourth quarter, consolidated revenue was Bt4.9 billion, up by Bt338.4 million or 7.3 per cent year on year, comprising a revenue mix of 48.2 per cent for the hotels business and 51.8 per cent the food business. The recovery of hotels in Bangkok and upcountry in the fourth quarter, and continuing good operating results for the hotels in Maldives, achieved an average occupancy rate of 90.4 per cent (an increase of 3.8 per cent year on year or 3.2 percentage points), together with a revenue per available room (RevPAR) of Bt16,819 (an increase of 14.9 per cent compared wit Bt14,661 in the same quarter of 2013).
This positive contribution resulted in the hotels business achieving total fourth-quarter revenue of Bt2.38 billion, an increase of 6.0 per cent year on year.
Meanwhile the food business achieved total fourth-quarter revenue of Bt2.5 billion, an increase of 8.6 per cent year on year, with most of this coming from these quick-service brands: KFC, Auntie Anne’s, Yoshinoya, and the Terrace.
In the fourth quarter of 2014, CENTEL achieved total consolidated EBITDA (earnings before interest, taxes, depreciation and amortisation) of Bt1.04 billion, an increase of Bt133.5 million or 14.7 per cent year on year. This increase resulted from EBITDA growth for the hotels business. Total net profit, from normal operations, increased by 51.5 per cent year on year, with a total of Bt477.0 million compared with Bt314.8 million in the fourth quarter of 2013.
