The surge in tourist arrivals has resulted in a rise in the profits of hotels in Nepal. All hotels listed on the stock market have released their second-quarter financial statements. According to public financial statements, the net profit of hotels has increased by an average of 48 per cent compared to the same period last year.
There are six companies listed in the Hotel and Tourism group on NEPSE. Among these, Chandragiri Hills and Kalinchok Darshan primarily operate cable car services. However, the remaining four companies—Soaltee, Taragaon Regency, Oriental, and City—focus on the hotel business. Only the City Hotel group is experiencing losses, while all other companies have recorded profits.
In the financial statements released by the hotels, it is noted that the increase in the number of foreign tourists has positively impacted income and profitability. In the second quarter of the current financial year, the total net profit of the six companies amounts to Rs 449.5 million, compared to Rs 303.3 million in the same period last year, representing an average profit increase of 48 per cent for the Hotel and Tourism group companies.
Taragaon Regency Hotel Company, operating Hyatt Regency Kathmandu, experienced the highest profit increase, up by 71 per cent. The company reported a net profit of Rs 181.6 million in the second quarter, compared to Rs 106.1 million in the same period last year. This increase is attributed to the rise in total income, which amounted to Rs 638.5 million this year, compared to Rs 531.1 million last year during the same period. The earnings per share (EPS) of the company stands at Rs 9. ith a net worth per share of Rs 145.64.
Oriental Hotel Company, operating Radisson Hotel, saw a 46 per cent increase in net profit compared to the previous year’s review period. The company earned a net profit of Rs 53.4 million in the second quarter, up from Rs 36.5 million during the same period last year. The company’s operating income for the first six months of the current fiscal year is Rs 560.1 million, compared to Rs 439 million during the review period last year. In the second quarter, the company’s EPS is Rs 4.74, with a net worth per share of Rs 342.58.
Soaltee Hotel has earned a net profit of Rs 263.1 million in six months. According to the second quarter financial statement released by the company, the profit has increased by 4.6 per cent compared to the review period last year. According to its released statements, the total revenue of the company has reached Rs 1.05 billion in six months. During the same period last year, the hotel’s revenue was Rs 961.1 million.
The increase in total income appears to have positively impacted the company’s profit. With shares issued at a face value of Rs 10, the annual earnings per share (EPS) stands at Rs 2.97, while the net worth per share is Rs 26.78.
City Hotel, operating Hyatt Place, however, has incurred a loss of Rs 117.9 million, showing improvement compared to the previous loss of Rs 132.4 million. The increase in the company’s income seems to have contributed to reducing the loss. In the second quarter, the company earned Rs 243 million, up from Rs 212 million during the same period last year.
However, it is worth noting that the financial cost of the company has increased, from Rs 165.6 million in the second quarter of the previous year to Rs 174.8 million in the same period this year. Additionally, the company’s long-term debt amounts to Rs 3.12 billion. The earnings per share of the company is minus (-) Rs 7, indicating a loss per share, while the net worth per share is Rs 96.50.
Similarly, the profit of Chandragiri Hills, which operates a cable car service, has increased by 22 per cent. The company earned a net profit of Rs 51.4 million in the second quarter of last year and Rs 62.8 million in the same period this year. The operating income of the company was Rs 408.2 million in the second quarter of last year and has increased to Rs 457.5 million now. This increase in income seems to have contributed to the rise in profit.
The company clarified that the total income has increased by 12 per cent, attributed to a significant improvement in foreign and domestic tourist arrivals. In the second quarter, the earnings per share (EPS) of the company is Rs 4.10, and the net worth per share is Rs 89.
Kalinchok Darshan Company, another cable car operator, earned a net profit of Rs 6.43 million in the second quarter. In the same period last year, the company incurred a loss of Rs 9.87 million due to low income. The total income of the company was Rs 4.56 million in the second quarter of last year and has surged to Rs 34.3 million in the second quarter of the current year.
However, the company’s financial and operating expenses have also increased. The financial cost was Rs 5.9 million in the second quarter last year and has risen to Rs 10.9 million this year. The earnings per share of the company is Rs 1.8, and the net worth per share is Rs 97.94.
