Annual Report 2019

ANNUAL REPORT 2019 49 MANAGEMENT DISCUSSION AND ANALYSIS 2. Hotel operations and management The Group owns and operates its hotel portfolio through three distinct lines of business, with focus on the three to four star hotel segment. These include Dorsett Hotels and Resorts, featuring the upscale “Dorsett Grand” and mid-scale “Dorsett”, the value-led “Silka” branded hotels, and the “d.Collection” which features boutique hotels with unique identities. The Group’s hotels under these three lines of business are collectively referred to as the “Dorsett Group”. In April 2018, the Group completed the acquisition of TWC, which owns and operates two four-star hotels and one three-star hotel in Germany, one four-star hotel in Austria and one four-star hotel in the Czech Republic (directly connected to one of the casinos in TWC’s portfolio), with a combined 572 rooms operated under the TWC Hotel Group. TWC Hotel Group started to contribute to the Group’s hotel operating results with effect from 1 May 2018. The following summarises the regional operating performance of the Group’s owned hotels for FY2019 and FY2018 in LC. Occupancy Rate Average room rate RevPAR Revenue (LC) (LC) (LC) (LC) (LC’000) (LC’000) FY2019 FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 FY2018 Hong Kong (HK$) 95.3% 93.8% 802 739 764 693 846,830 776,474 Malaysia (MYR) 74.7% 73.9% 194 193 145 142 122,964 125,552 Mainland China (RMB) 72.6% 68.4% 398 408 289 279 218,119 214,742 Singapore (SGD) 82.0% 86.1% 173 174 142 149 15,930 16,658 United Kingdom (GBP) 82.3% 82.9% 118 106 97 88 23,804 16,637 (HK$) (HK$) (HK$) (HK$) (HK$’000) (HK$’000) Dorsett Group Total 84.2% 82.8% 709 658 597 545 1,684,565 1,537,802 TWC Hotel Group (i) 57.1% – 600 – 343 – 133,057 – Note: (i) Amounts represent results of TWC Hotel Group for the period from 1 May 2018 to 31 March 2019. Dorsett Group’s hotel operations for FY2019 recorded total revenue of approximately HK$1.7 billion, representing a solid growth of 9.5% from that in FY2018. OCC increased approximately 1.4 percentage points to 84.2%. The overall ARR increased 7.8% to HK$709 per night. As a result, RevPAR increased 9.5% to HK$597 for FY2019. These results were achieved despite the adverse foreign exchange movements during the year. Hong Kong remained the main contributor to Dorsett Group’s hotel operations which accounted for approximately 50% of its revenue. The OCC increased approximately 1.5 percentage points to 95.3% and ARR rose by 8.5% to HK$802 per night, contributing to a solid growth of 10.2% in the RevPAR to HK$764 per night as compared to FY2018. Overall performance of Hong Kong for the FY2019 is shown below. FY2019 FY2018 Hong Kong 2H 1H 2H 1H Occupancy rate 96.5% 94.0% 96.5% 91.2% Average room rate (HK$) 872 730 820 655 RevPAR (HK$) 842 686 791 597 Dorsett City, London Hotel Donauwelle, Austria