Annual Report 2019

ANNUAL REPORT 2019 51 MANAGEMENT DISCUSSION AND ANALYSIS In the United Kingdom, hotel revenue was approximately GBP24 million for FY2019, an increase of approximately 43% as compared to FY2018, due to the addition of the hotel rooms from newly-opened 13-storey Dorsett City London which had the official opening in February 2018 with the full inventory of 267 rooms. Despite the initial ramp-up of Dorsett City London during the year, OCC remained broadly flat at 82.3% and RevPAR recorded an increase of 10.2% to GBP97 per night as compared to prior year. The operating performance of hotels in the United Kingdom will continue to grow healthily as Dorsett City London continues its ramp-up. FY2019 FY2018 United Kingdom 2H 1H 2H 1H Occupancy rate 77.8% 86.9% 79.6% 87.6% Average room rate (GBP) 121 116 107 105 RevPAR (GBP) 94 101 85 92 Having completed the acquisition of TWC Hotel Group in April 2018, its results started to feature in the Group’s result for FY2019 with a 11-month contribution. Revenue from TWC Hotel Group was HK$133 million with OCC of 57.1% and a RevPAR of HK$343 per night for FY2019. The Group is actively driving the collaboration between Dorsett Group and TWC Hotel Group to bring out the synergies from the Group’s entire hotel portfolio which are now under the same management. The post-acquisition integration of the operations have been progressing as planned, and with a larger portfolio the Group will be able to enjoy the benefits of an enlarged pool of resources and streamlined operations. As at 31 March 2019, the Group owns 28 operating hotels (9 in Hong Kong, 6 in Malaysia, 4 in Mainland China, 1 in Singapore, 2 in London, 1 in Gold Coast (25% stake), 3 in Germany, 1 in Austria and 1 in Czech Republic) with approximately 7,500 rooms, having added a combined 572 rooms to the Group’s portfolio through the acquisition of TWC in April 2018. The Group has 15 hotels in the development pipeline. Except for Ritz-Carlton hotels in Melbourne and Perth, three world-class hotels (in addition to a Dorsett hotel) in the integrated resort of Queen’s Wharf Brisbane in which the Group has a 25% interest, and a five-star hotel as part of the Star Residences development in Gold Coast, all the hotels in the pipeline are expected to be operated by Dorsett Group. When all the hotels in the pipeline become operational, the Group will own 43 hotels operating approximately 10,700 rooms. The Group also manages 4 other hotels (1 in Hong Kong and 3 in Malaysia) with approximately 970 rooms. In addition, the Group has, through a 50% joint venture, entered into a contract to acquire a land plot in the Sydney CBD which can be developed into the first Dorsett hotel in Sydney with approximately 280 rooms. With this additional hotel added into the Group’s pipeline, the Group will have secured land plots for a Dorsett hotel in each of the major cities of Australia.