New World Development Company Limited
24
Execu t i ve V i ce - Cha i rman ’s Repo r t
Hotel Operations
The change in external market environment and policies in
the region have varied the previous pattern of development
of the tourism and hospitality industry, with heavy reliance
on the rapid growth in visitor arrivals at Hong Kong from
Mainland China over the past few years. Adjustment in the
overall occupancy and average room rate of hotels in Hong
Kong was experienced. Hotels which target visitors from
Mainland China were affected to a larger extent.
For those Tariff A hotels which target business travellers and
high-end customers, the consolidation was relatively minor
under the robust economic activities in the region and the
drive from the customer loyalty programme, in addition to
the limited availability of new supply of hotels of the same
tier in recent years. According to the statistics of the Hong
Kong Tourism Board, for the period from January to June in
2016, the number of overnight travellers from long-haul
regions and short-haul regions other than Mainland China
increased by 4.2% and 10.1% year-on-year respectively,
providing solid support to the Tariff A hotels.
During the year under review, the segment results in hotel
operations reported a decrease, mainly due to the disposal
of 50% interest in three hotels in Hong Kong, namely Grand
Hyatt Hong Kong, Renaissance Harbour View Hotel and Hyatt
Regency Hong Kong, Tsim Sha Tsui, to Abu Dhabi Investment
Authority on 15 June 2015. As a result of the said disposal,
those hotels were no longer accounted for as subsidiaries of
the Group. The share of 50% result contribution of the three
hotels is included in share of results of joint ventures, with
