Tour operator warns of disasterTop News | Kevin Xu 3 Sep 2019
China Travel International Investment Hong Kong is one of the companies left feeling it is getting nowhere.
Chairman and executive director Fu Zhuoyang said revenue at the listed firm's hotels in Hong Kong plunged 30 percent, in line with the sector.
The group owns five hotels in Hong Kong and Macau, with the four here being Metropark Hotel in Mong Kok, Kew Green Hotel in Wan Chai, Metropark Hotel Kowloon in Ho Man Tin and Metropark Hotel Causeway Bay.
Fu said the company will keep costs in check and expand its mainland business.
"If the situation continues, that would be disastrous for Hong Kong's economy as a whole," he warned.
Financial controller Chen Hao said the occupancy rate is, like before the crisis, about 90 percent, and that will be maintained even if the group needs to lower the room rate.
Average room rates at certain hotels fell in the first half, it said in an interim results announcement.
Employees are being urged to take leave accrued at this time, but there will be no layoffs, Fu said.
Total revenue rose 6.8 percent to HK$2.22 billion, while that for its hotels was 4 percent up at HK$401 million.
Revenue for transporting people across borders rose 12 percent to HK$253 million but profit attributable to the sector slumped by 94 percent to HK$4.19 million.
Net profit grew by 11 percent to HK$419 million, mainly due to increased contributions from supplementary tourist attraction operations.
Basic earnings per share were 7.69 HK cents.
The company recommended an interim dividend of three HK cents per share.