Westin, Sheraton, Sea Pearl suffer business decline in Jul-Sep
Unique Hotel stated in its financial report that the July-August student protests and the ensuing unrest created widespread security concerns, severely impacting its business
The Westin Dhaka, Sheraton, and Sea Pearl Beach Resort experienced a downward trend in the first quarter of this fiscal year, as the July-August mass upsurge and prolonged floodings led to a decline in business for luxury hotels.
As a result, the owning companies – Unique Hotel and Resort and Sea Pearl Beach Resort – incurred losses during the three months through September. Unique Hotel owns The Westin Dhaka, Sheraton, and Hansa, while Sea Pearl Beach Resort operates a hotel in Cox's Bazar.
According to the unaudited financial statement of Unique Hotel for the July-September quarter, The Westin Dhaka reported a revenue decline of over 37%, totalling Tk30.68 crore, compared to the same period last year.
Westin's earnings from room rentals dropped by 47% to Tk12.25 crore, while revenue from food and beverage sales fell by 30% to Tk15.85 crore. Additionally, income from other services decreased by 24%, amounting to Tk2.57 crore.
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Sheraton also experienced a revenue decline of 38%, reaching Tk10 crore for the quarter compared to the previous year. Additionally, Unique Hotel saw a 31% decrease in revenue from Hansa, which dropped to Tk3.29 crore.
As a result, the company's total revenue for the quarter fell by 37%, totalling Tk44 crore compared to the same period last year.
Due to the decline in revenue from its core business, the company incurred a loss of Tk17.57 crore. However, it was able to offset this loss by posting a profit of Tk13 crore, driven by earnings from its joint venture, SFL Unique Nebras Meghnaghat Power.
Unique Hotel stated in its financial report that the July-August student protests and the ensuing unrest created widespread security concerns, severely impacting its business, particularly the tours and travel sector.
In response to the unrest, several countries issued travel advisories and restrictions, which negatively affected international bookings. Many travellers chose to postpone or cancel their trips, and corporate events and bookings were also cancelled due to security concerns, the statement explained.
Additionally, Bangladesh experienced a devastating flood during the first quarter of this fiscal year, which lasted several weeks and further discouraged travel. As a result, domestic tourism suffered, with a significant decrease in hotel occupancy, especially since most of the hotel's guests are foreign travellers, the statement added.
Furthermore, the ongoing rise in commodity prices, along with increases in electricity, gas, and bank interest rates, has further hindered the company's operational performance, the statement concluded.
Unique Hotel shares closed at Tk48.20 on Wednesday, 2.63% lower than the previous session.
Sea Pearl Beach Resort reported a significant loss in the first quarter of FY25. During the quarter, its revenue declined sharply by 84%, dropping to Tk9.56 crore. It also recorded a net loss of Tk12.74 crore during the quarter. Sea Pearl shares closed at Tk34.60, 2.81% lower than the previous session.
