Listed Grand Plaza Hotel Corporation swung to a net loss of P4.3 million in the first three months of the year from a profit of P4.7 million last year, due to lower occupancy and revenues.
In a financial report to the Philippine Stock Exchange, Grand Plaza said its total revenues for the first quarter of 2016 decreased by 14.5 percent to P99.1 million from the P115.9 million registered last year.
“The main reason for the drop is due to significantly lower room revenue offset by higher food and beverage (F&B) revenue and rental/others,” the company said.
Room revenue decreased by 21.3 percent to P64.3 million from the P81.8 million posted in the same period last year.
This was caused by the drop in occupancy rates to 52.7 percent from the 65.9 percent occupancy rate recorded in the first quarter of last year.
“Average Room Rate also dropped from P3,065 to P2,932 compared to the same period of last year,” Grand Plaza said.
On the other hand, the firm’s F&B business showed signs of growth in the period.
F&B revenues inched up by 1.7 percent to P31.4 million from the P30.9 million posted last year.
“The improvement in F&B is due to higher revenue in Riviera café and Banquet business in this quarter versus same period last year,” it said.
Grand Plaza Hotel owns and operates the Heritage Hotel Manila located in Pasay City.