LISTED Grand Plaza Hotel Inc. reported a net loss of P13.4 million in the first nine months of 2016 from a net income of P4.31 million a year ago as competition from new hotels and condominium developments affected its occupancy rates.
The company told the Philippine Stock Exchange on Wednesday that for the third quarter of this year, it incurred a net loss of P7.7 million against a net income of P2.1 million in the same quarter last year.
Revenue in the first nine months declined 16 percent year-on-year to P281 million.
“The main reason for the fall was lower room and food and beverage (F&B) revenue,” Grand Plaza hotel said.
The hotel’s occupancy rate dropped to 48 percent in the nine months from 59 percent a year ago even with lower average room rates.
“The newly opened hotels and are posing a threat to our hotel and in addition, residential condominiums are also offering daily rates so this eats into the hotel industry business,” the company said.
It said its F&B business in the nine months contracted 9.1 percent or by P8.6 million compared to the same period of last year.
Total cost of sales during the period declined by 10 percent to P32.9 million from P36.7 million a year ago.
Grand Plaza Hotel owns and operates the Heritage Hotel Manila located in Pasay City.