Business growth for Far Glory Hotel

Hotel company Far Glory Hotel’s (2712) 2013 financial report showed stable revenue performance with consolidated revenue of NT$518 million, an annual growth of 1.63%, net income of NT$65.17 million, an annual growth of 4.1%, and EPS of NT$0.68. Far Glory Hotel states that the company’s hotel is located in the Hualien region. The health of domestic tourism is tied to economic growth and Taiwan’s economy this year is expected to be better than last year. Additional favorable transportation factors such as Huatung Railway electrification and added Puyama Express Service will facilitate continued revenue growth for Far Glory Hotel this year.

The company explains last year’s consolidated revenue was NT$518 million with an annual growth of 1.63%. Gross profit margin declined to 37.83% compared to 2012’s 39.27% due to the renovation of a portion of guest rooms. However, through control of operating expenses, combined operating margin hit 15.79%, a slight increase compared to 2012’s 15.28%.

From a guest structure perspective, domestic guests account for 93% of Far Glory Hotel revenue, followed by mainland guests at 5%, and guests from other countries at 2%. Looking ahead this year, even though Far Glory Hotel currently only operates its Hualien hotel, the company will further collaborate with Farglory Group’s Farglory Dome, Farglory Hotel Jiaosi, Farglory Hotel Alishan, and Farglory Hotel Yangmingshan to engage in commissioned management under the “Farglory Hotel” brand. Currently, progress on the Farglory Dome is furthest along and it is expected to begin trial operation in 2016.