OPERATIONS REVIEW
Our hotel ownership and management business
performed creditably with operating profit rising
by 5.6% from the last financial year (“FY”) to
S$40.7 million. This is despite a weaker Australian
dollar, which slid more than 9% in 2014.
Strong demand by local corporates in Australia
bolstered the Group’s overall hotel occupancy
rate to 85.6%, reflecting a 3.3% increase.
Revenue per available room (“revpar”) for our
stable of eight hotels rose by 4.3% over the
previous year, led by sterling performances from
Sir Stamford at Circular Quay, Stamford Plaza
Melbourne, and Stamford Plaza Auckland.
In fact, the Group’s revenue from this segment
increased by 3% in Australian Dollar terms,
although a weaker Australian dollar resulted in
lower translated revenue of S$213.6 million.
Sir Stamford at Circular Quay
achieved yet
another year of excellent results, with gross
operating profit (“GOP”) growth of 22.0% over
the last FY. Overall, revpar increased by 10.5% at
the back of higher occupancy and average room
rates. Food & beverage (“F&B”) segment also saw
healthy growth backed by strong performances
from its residential conferencing segment.
This award winning hotel has been consistently
recognised for its quality and service. This year,
Sir Stamford at Circular Quay was awarded the
accolade of 2014 Trip Advisor Travellers’ Choice
Award again. This is the second consecutive year
that the hotel has received this award. With its
favourable location, distinctive style and service
excellence, Sir Stamford at Circular Quay is
well placed to continue its sterling performance
in FY2015.
The Stamford Plaza Sydney Airport
delivered a
set of commendable results with GOP growth of
11.8%. Revpar rose by 4% over the previous FY, as
the hotel achieved higher occupancy and average
room rates through effective rooms yield strategy.
This was accomplished despite the opening of The
Rydges in May 2014, which added 318 new room
inventories in the Sydney airport region.
Notwithstanding increased competition, Stamford
Plaza Sydney Airport continues to be recognised
as the top hotel in the Sydney airport region. This
year, the hotel was voted “Sydney’s Best Airport
Hotel” for the fourth consecutive year and “Best
Airport Hotel in Australia/Pacific Region” by the
prestigious World Airport Skytrax Awards.
Plans are underway for a major revamp of the
hotel’s guestrooms and restaurants to augment
its status as the choice hotel in the Sydney airport
region and to enhance future revenue.
Riding on strong demand from the leisure
market,
Stamford Grand North Ryde
achieved
a GOP increase of 4.1% over the previous FY.
Revpar increased by 2.2% at the back of a 4.1%
increase in occupancy. The hotel is scheduled
to close its operations in the third quarter of this
calendar year for redevelopment into Macquarie
Park Village (“MPV”), the Group’s latest residential
project which is 96% pre-sold with a total gross sale
of A$427 million as at 31 May 2014.
STAMFORD LAND CORPORATION LTD
ANNUAL REPORT 2013/2014
14
