MANILA, Philippines - Hotel developer and operator Grand Plaza Hotel Corp. (GPHC) said its profits dropped last year due to lower room occupancy and food sales.
In a regulatory filing, the company behind The Heritage Hotel Manila said its net income fell almost seven percent to P165 million from P176 million a year earlier as total revenues fell to P687.31 million from P718.82 million.
Specifically, room revenues decreased 3.8 percent to P353.1 million from P367.7 million a year ago.
“The fall in room revenue is mainly due to drop in occupancy from 67 percent in 2011 to 64 percent in 2012,†GPHC said.
“The unfavorable variance is due to the corporate segment but offset by the increase in package segment,†it added.
Grand Plaza lists Diamond Hotel, Dusit Thani, Pan Pacific and Traders Hotel as its competitors.
The food and beverage division, composed of Riviera Café, Casino and Banquet, recorded a nine-percent cut in its revenues to P183 million from P202.8 million.
“With the opening of the Resort World Casino Manila, it drew away the regular casino players in the hotel,†GPHC said.
Resorts World Manila is the eight-hectare hotel and gaming complex in Pasay City of Travellers International Hotel Group, which is owned by Genting Hong Kong, the third-largest cruise line operator in the world and local conglomerate Alliance Global Group Inc.