New World Development Company Limited
EXECUTIVE VICE-CHAIRMAN’S REPORT
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Goods Shopping Center is a marketplace where Hong Kong merchants establish their presence and primarily provide
high-quality globally-sourced commodities and Hong Kong-style services. It offers a good variety of products to fully
address the shopping, catering and entertainment needs of families. An innovative dual operation model is adopted,
comprising both “bonded display” and “cross-border e-commerce”. Apart from sales service available in a physical
shop, online shopping service is also available from a number of merchants under “bonded display” and “cross-border
e-commerce”, providing consumers with the enjoyment and convenience under diversified shopping options. Pedestrian
flow already reached 250,000 on the first Sunday after the trial run started.
For office buildings, New World Tower and Manning House, both being Grade A office buildings located in the traditional
prime commercial area in Central, achieved satisfactory performance in terms of occupancy and rental rates. New World
Tower is undergoing an asset enhancement programme to meet the new market leasing demand. The enhancement
works of the lobby on ground floor was completed. Its office lobbies and other major facilities are gradually being
upgraded.
New World Centre redevelopment project located at the core area of Tsim Sha Tsui promenade is currently progressing
as scheduled. The underground retail space at 12 Salisbury Road Tsim Sha Tsui will be altered in parallel with the
redevelopment project of the adjacent New World Centre.
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 year-on-year growth in visitor arrivals at Hong
Kong over the past few years. Adjustment in the overall occupancy and average room rate of hotels in Hong Kong was
experienced. However, for those Tariff A hotels which target business travellers, the consolidation were 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 in the same grading in recent years.
During the period under review, the segment results in hotel operations reported a decrease, mainly due to three
causes: first, the aforesaid changes of the industrial landscape of Hong Kong tourism and hospitality; second, as a result
of the disposed of 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 a joint venture company formed with Abu Dhabi Investment
Authority in June 2015, the share of result contribution of the three hotels have been reduced and; third, financing cost
was incurred by that joint venture company for the acquisition of the hotels.
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 158 guest rooms at Grand Hyatt Hong
Kong is currently underway with good progress. Despite the impact on occupancy caused by the renovation during the
period under review, the hotel’s average room rate achieved at a satisfactory level. Benefiting from the continual growth
of conventions and exhibitions, Renaissance Harbour View Hotel, which is adjacent to Hong Kong Convention and
Exhibition Centre, reported satisfactory occupancy rate, with solid performance in its average room rate.
Hyatt Regency Hong Kong, Tsim Sha Tsui, centrally located in the core of Kowloon peninsula, achieved an average
occupancy of 89% and an average room rate around HK$2,000 per night during the period under review. Hyatt Regency
Hong Kong, Sha Tin, which is adjacent to University Station on MTR East Rail Line, reached an average occupancy
of 83% and average room rate around HK$1,300 per night during the period under review. pentahotel Hong Kong,
Kowloon, which is located near the Kai Tak Cruise Terminal in Kowloon East, targets young fashionable gurus and
travellers looking for novel experience. It attained an average occupancy of 82% and reported satisfactory performance
in its average room rate during the period under review.
