Rates stabilise at Sino Hotels
Sino Hotels (Holdings) expects room rates to stabilise in its three hotels this year, after last year's decline, according to executive director Ivan Lee Wank-hay.
Its 100 per cent-owned City Garden, 25 per cent-owned Royal Pacific Hotel & Towers and Conrad International Hong Kong - dropped room rates more than 20 per cent last financial year.
That led to a reported loss of $23.57 million in the year to June.
Mr Lee said he did not expect any further pressure on room rates.
In the past five months, the three hotels improved their business performance, he said.
The company made operating profits in the past five months and occupancy rates averaged more than 90 per cent, he said.
Mr Lee said the improvement of the five-star Conrad International's occupancy reflected a better performance in the local business sector.
The average room rate at Conrad International is $1,400 per night, 10 per cent lower than last year.
Food and beverage sales did not improve much as local consumption stayed low, he said.
The company has sufficient capital to repay its short-term loans, Mr Lee said.
