Shun Tak plans top hotel for Macau
Shun Tak Holdings, which runs businesses ranging from property to shipping and hotels, says it plans to build 'an ultra-luxury hotel' on Macau's Cotai strip in view of the strong growth in its hospitality business.
It announced the plan after reporting a 9.9 per cent drop in net profit to HK$781 million last year as a result of lower property sales due to moves by the Hong Kong government to cool the market.
Excluding revaluation gains on investment properties, the bottom line dropped 2.5 per cent to HK$384 million. Turnover dipped 4.2 per cent to HK$2.96 billion.
During the year, operating profit from property fell 27.34 per cent to HK$186 million, while the shipping division incurred a loss of HK$10 million due to soaring fuel costs.
A final dividend of 4 HK cents would be declared for the second half, against 6 HK cents in the previous year.
'The group is in discussion with the Macau government on its plan to develop the ultra-luxury hotel on the [Cotai] site, to be managed by the Jumeirah Group,' Pansy Ho, managing director of Shun Tak, said.
She said the group had solid responses in selling its property projects, including Chatham Gate in Hong Kong and Nova Park in Macau.
In addition, Taipa Hills Memorial Garden in Macau, a columbarium, was well received, she said.
More halls are expected to be ready by phases and released for sale.
'These projects will continue to take centre stage and are expected to generate a steady pipeline of income for the group in subsequent quarters,' Ho said.
Shares of Shun Tak rose 2.2 per cent to HK$3.24 yesterday, on a day the Hang Seng Index remained flat at 20,668 points.
The final dividend, in Hong Kong dollars, which Shun Tak will paid out for the second half of the year