Annual Report 2016
25
Execu t i v e V i ce - Cha i rman ’s Repo r t
the change in accounting treatment, the related additional
depreciation and amortisation, financing costs and taxation
were also included.
The Group’s premium hotels in Hong Kong targeted at
business travellers have become major contributors to the
result of the Group’s hotel operations. The phase two
renovation of approximately 160 guest rooms at Grand Hyatt
Hong Kong had been completed and the function rooms
together with other food and beverage outlets will start
renovation in FY2017. Despite the impact on occupancy
caused by the renovation during the year under review, the
hotel’s average room rate remained at a satisfactory level.
Renaissance Harbour View Hotel, which is adjacent to Hong
Kong Convention and Exhibition Centre, benefited from the
continual growth of conventions and exhibitions. The
renovation of the Lobby Lounge is under progress in the first
half of FY2017. Furthermore, Hyatt Regency Hong Kong, Tsim
Sha Tsui, centrally located in the core of Kowloon, achieved
an average occupancy of 88% and an average room rate
around HK$1,900 per night during the year under review.
On 20 November 2015, the Group entered into an agreement
with Chow Tai Fook Enterprises Limited (“CTFE”) to acquire
36% interests in Beames Holdings Limited (“Beames”) at a
consideration of approximately HK$3,592.8 million. Beames
owns equity interests and operates various hotel properties
in Hong Kong and Southeast Asia, including Grand
Hyatt Hong Kong, Renaissance Harbour View Hotel,
Hyatt Regency Hong Kong, Tsim Sha Tsui, Rosewood
Beijing, Renaissance Riverside Hotel Saigon, New
World Hotel Saigon, New World Makati Hotel and
properties in Shun Tak Centre in Hong Kong.
Following the abovementioned acquisition of further
interests, Beames became a wholly owned subsidiary
of the Group and will effectively consolidate the
Group’s interest in those hotel properties, which is
consistent with the core business strategies of the
Group. Besides streamlining the structure of Beames,
the increase in stake in the hotel properties will
p r o v i d e f l e x i b i l i t y a n d a w i d e r p l a t f o r m f o r
investments which will enhance recurrent income and
facilitate future merger or joint venture opportunities.
As at 30 June 2016, the Group had a total of 17 hotel
properties providing over 7,700 guest rooms in Hong
Kong, Mainland China and Southeast Asia.
