XX酒店财务研究

nullnullANNUAL REPORT (Financial Analysis) : Shangri-LA Hotels & ResortsHP 5033 Hospitality Management AccountingnullPresented byChung Myoung ChuFrederica MonakSiti Soffiyah YusoffNurasykin Mohd SallehnullBACKGROUND OF SHANGRI-LA HOTELS AND RESORTSShangri-La Hotel & Resorts Shangri-La Hotel & Resorts The Kuok Group of Companies established the hotel management company, Shangri-La Hotels & Resorts in 1949. Headquarter in Hong Kong more than 23,500 staff over 20,000 rooms suites at 42 hotels Shangri-La Hotels & ResortsShangri-La Hotel & Resorts Shangri-La Hotel & Resorts Shangri-La were located in….Shangri-La’s Philosophy, Vision, Mission and Care ValuesShangri-La’s Philosophy, Vision, Mission and Care ValuesPhilosophyShangri-La hospitality from caring peopleVisionThe first choice for customers, employees, shareholders and business partnersMissionDelighting customers each and every timeCore ValuesRespect, Sincerity, Helpfulness, Courtesy, Humility Shangri-La’s Operating Strategies Shangri-La’s Operating Strategies 1Technical and Pre-Opening Services 2Marketing Support 3Marketing Initiatives and Activities 4Frequent Flyer Programs 5Customer Loyalty Program 6Global Sales Network 7Central Reservations and Property Management Systems The Award-Winning Hotel Group The Award-Winning Hotel Group Time (Asia) : Preferred Hotel Chain Travel Weekly (UK) : Best Asia Pacific Hotel Group Business Traveller (Asia-Pacific) : One of the Best Business Hotel Brands in the World Business Traveller (Asia-Pacific, UK and German Versions) : Best Business Hotel Brands in Asia-Pacific The Asset (Asia-Pacific) : Best Hotel Chain in Asia The Guardian and The Observer (UK) : Best Overseas Hotel Group Selling Long Haul (UK) :Best Hotel Group in the Far East Global Finance (USA) : Best Hotel Chain in Asia-Pacific Reader’s Digest (Asia) : Super brands 2003 Asia money : Best Hotel Chain for Business and Vacation in Asia nullBusiness Activities of Shangri-LA Hotels and ResortsBUSINESS ACTIVITIESBUSINESS ACTIVITIESBusiness ActivitiesOperating ActivitiesFinancial ActivitiesPlanning ActivitiesInvesting ActivitiesPlanning ActivitiesPlanning ActivitiesAsia and in particular Mainland China has been the primary focus of the Group’s business. The Group has actively pursued and successfully concluded management contract opportunities in Australia, South Asia (Maldives and India) and the Middle East. The Group also continues to prospect for suitable opportunities in key gateway cities in Europe and North America. The Group views these opportunities with strategic interest in not only underpinning the brand but also improving return on investments for shareholders. Planning ActivitiesPlanning ActivitiesMainland China will continue to be the primary choice for the Group’s investments in hotels strong fundamentals of high annual GDP growth rates growing disposable income high year on year growth in domestic travel (by 10%) and international travel (by 8%) Operating ActivitiesOperating Activities“Hotel Operation” Ownership and operation of hotel business (77%)“Hotel Management” Provision of hotel management and related services (1%) “Property Rentals” Ownership and leasing of office, commercial and service apartments (22%) Business SegmentsOperating ActivitiesOperating ActivitiesTurnover from hotel operations has been affected in recent years by global and regional economic problems, political problems, the outbreak of SARS in some countries in the Asian region in 2003. Management took immediate actions to minimize expenditures especially salaries, wages and discretionary costs, conserve cash resources and maintain sufficient banking facilities to fund capital commitments and working capital needs. With the progressive lifting of travel warnings issued by the WHO in June 2003, air-travel volumes and hotel occupancies have recovered. Overall weighted average yield for the year decreased by 11% compared to 2002. Hotel OperationOperating ActivitiesOperating ActivitiesSLIM International Limited and its subsidiaries (the SLIM Group), provides hotel management and/or technical consultation and project management services for hotels under development or renovation and hotel management and marketing services for operating hotels. As at 31 December 2003, -hotel management contracts in respect of 6 operating hotels -technical services and hotel management contracts in respect of 12 hotel projects Hotel ManagementOperating ActivitiesOperating ActivitiesProperty RentalFinancing ActivitiesFinancing ActivitiesLoansSharesCash and Bank BalanceInvesting Activities-RenovationsInvesting Activities-RenovationsMajor renovations at the following hotels/resorts have been completed in 2003: Kowloon Shangri-La, Hong Kong China World Hotel, Beijing Shangri-La Golden Flower Hotel, Xian Shangri-La Hotel, Singapore (Valley Wing) Shangri-La’s Mactan Island Resort, Cebu Shangri-La Hotel, Kuala Lumpur Shangri-La Hotel, Penang Shangri-La’s Rasa Sayang Resort, Penang Shangri-La’s Tanjung Aru Resort, Kota Kinabalu Shangri-La Hotel, Bangkok Major renovations are on-going at the following hotels and are expected to be progressively completed in 2004: Edsa Shangri-La, Manila Shangri-La’s Fijian Resort, Yanuca Shangri-La Hotel, JakartaInvesting Activities-RenovationsInvesting Activities-RenovationsEstimated expenditure of all subsidiaries amounting to US$71.9 million for renovation and other projects currently on going and to be commissioned in 2004 will be mainly financed from operating cash flows of the individual hotels, supplemented by locally contracted short term bank loans where appropriate.The other renovations to be completed in 2004 include: Shangri-La Hotel, Singapore (renovation of coffee garden and ballroom) Shangri-La’s Rasa Sentosa Resort, Singapore (installation of spa and renovation of food and beverage facilities) Shangri-La Hotel, Penang (renovation of coffee garden and other facilities) Shangri-La’s Rasa Ria Resort, Sabah (guestrooms renovation) Shangri-La Hotel, Bangkok (installation of spa) Makati Shangri-La, Manila (renovation of some food and beverage facilities)Investing Activities-New ProjectsInvesting Activities-New ProjectsNew HotelsShangri-La Hotel, Zhongshan (Jan.2004) Shangri-La Hotel, Fuzhou (late 2004)The costs to complete these two projects are estimated at US$178 million and will be mainly financed by project loans and the operating surplus of SLPU. Other Planned And/or developed New HotelsChengdu Futian in Shenzhen Ningbo Xian Guangzhou Jingan Nanli The Group’s commitments to complete these projects are estimated at US$684.6 million. These will be mainly financed by the funds recently raised from issue of new shares of the Company and convertible bonds, operation surpluses, the available undrawn borrowing facilities and locally contracted project loans, where appropriate. Land for new hotelChiang MaiInvesting Activities-New ProjectsInvesting Activities-New ProjectsBy the end of 2007, the Group has an equity interest will increase from 36 as at December 2003 to 46 and the corresponding room inventory will increase from 18,852 to approximately 24,498 rooms. Investing-Management ContractsInvesting-Management ContractsThe number of operating hotels under management and owned by third parties will increase from 6 as at 31 December 2003 to 18 by mid 2006 and the corresponding room inventory will increase from 1,940 to approximately 6,565 rooms. Investing-TechnologyInvesting-TechnologyState-of art Central Reservation System Interface with Global Distribution System Property Management System-Central Reservation System Group-wide Sales & Catering and Sales Force Automation System New Materials Management System -wired and wireless broadband internet Access Human Resource System Upgrade Point-of-Sale System Upgrade the technology infrastructure -to maximize revenue potential, improve staff productivity, enhance customer relationsnullMANAGEMENT DISCUSSION & ANALYSISFinancial StatementFinancial StatementIncome Statement or Profit and Loss AccountBalance SheetCash Flow StatementTurnover, revenue and segment informationTurnover, revenue and segment informationPrimary reporting format- geographical segmentsHong KongHotel ownership, operation and managementMainland ChinaHotel ownership, operation and management Ownership and leasing of office, commercial and serviced apartmentsThe PhilippinesHotel ownership, operation and managementSingaporeHotel ownership, operation and management Ownership and leasing of office, commercial and serviced apartmentsTurnover, revenue and segment informationTurnover, revenue and segment informationPrimary reporting format- geographical segmentsThailandMalaysiaHotel ownership, operation and management, golf club ownership and operationOther CountriesHotel ownership, operation and managementHotel ownership, operation and management ownership and leasing of office and commercialAssociated companiesAssociated companiesAmounts due from associated companies are unsecured, interest-free and with no fixed repayment terms except for the total amount of US$76,274,000 (2002: US$80,510,000) due from two associated companies which is interest bearing at LIBOR plus 2% per annum and US$31,316,00 (2002: US$30,631,000) due from an associated company which is interest bearing at 1.25% per annum.Other InvestmentsOther InvestmentsEquity securities listed in Hong Kong included shares in the company (“such SA shares”) with a carrying value of US$12,349,000 (2002: US$8,628,000) held by Shangri-La Hotel Public Company Limited, Thailand (“SHPCL”). Such SA shares, representing approximately o.6% (2002: 0.6%) of the issued share capital of the Company as at 31 December 2003, were held by SHPCL before the Company acquired the controlling interests in SHPCL in late 1999. The company has undertaken, subject to market conditions, to use its reasonable endeavors to produce SHCPL to dispose of all such SA shares to parties independent of the Kuok Group. In view of the temporary nature of this holding in such SA shares, they have been classified as other investments in these accounts.Bank Loans and Overdrafts and Other BorrowingsBank Loans and Overdrafts and Other BorrowingsOther borrowings represented S$30,000,000 unsecured Floating Rate Notes (the “Notes”) due in December 2004 issued by Shangri-La Hotel Limited, Singapore (“SHL”) on 13 December 2002. As at 31 December 2003, the interest rate is 1.15% per annum (2002: 1.45%). The interest rate will be re-fixed at every 6 monthly interval, based on an agreed formula set out in the issuing documents. Unless previously redeemed at the face value of S$30,000,000 on the maturity dateRetained ProfitsRetained ProfitsIncluded in the retained profits of subsidiaries and associated companies are statutory funds of approximately US$225,000 and US$16, 785,000 respectively (2002: US$197,000 and US$15,947,000). These funds are set up by way of appropriation from the profit after taxation of the respective Companies, established and operating in the PRC, in accordance with the relevant laws and regulations.Cash and Cash EquivalentsCash and Cash EquivalentsAt 31st December 2003, the Group's cash and bank balances of US$63,807,000 (2002: US$79,853,000) were kept in the PRC, Malaysia, Thailand, Malaysia, Thailand, the Myanmar. The remittance of funds out of these countries is subject to rules and regulations of foreign exchange control promulgated by the governments of the respective countries.DividendsDividendsHK8 cents per ordinary share A script dividend alternative was also offered. Not reflected as a dividend payable in these accounts, but will be reflected as an appropriation of retained earnings for the year ending 31 December 2004. The Board of Directors of the company at the board meeting held on 21 may 2003 resolved to change its recommendation made on 21 March 2002 to distribute a final dividend of HK5 cents per share for the year ended 31 December 2002 with scrip alternatives such that no final dividend was recommended to be declared for the year 2002. As a result, the amount US$13,972,000 previously disclosed as proposed dividend in the audited consolidated balance sheet as at 31 December 2002 included in the Company’s 2002 annual report is classified as part of the retained profits in the restated consolidates balance sheet as at 31 December 2002. Management Discussion and AnalysisManagement Discussion and AnalysisConsolidated revenues of the two hotels decreased by 23% in 2003 largely due to a decline in revPAR and food and beverage revenues following the outbreak of SARS in late March 2003.Mainland ChinaCombined revenues decreased by 13% in 2003. All the hotels recorded a decline in revPAR with the exception of the Shangri-La Hotels in Hangzhou, Changchun and Harbin which registered an increase by 1%, 7% and 6% respectively. The hotels located in Beijing, Shanghai, and Shangzen suffered most during the outbreak of SARS.Hong KongManagement Discussion and AnalysisManagement Discussion and AnalysisCombined revenues of the three hotels recorded a decline of 15% principally due to the impact of SARS. The revPAR of the Traders hotel Singapore and The Shangri-La Hotel Singapore decreased by 14% and 9% respectively. Shangri-La’s Rasa Sentosa Resorts Singapore also recorded a decline in revPAR by 15%. With improvement in arrivals and indication of recovery in the economy, these hotels are expected to improve their performances.The PhilippinesConsolidated revenues decreased marginally by 2%. A part from the fall out from the SARS epidemic, the hotels in the Philippines continue to experience some weakness in demand due to persistence security concerns and an uncertain investment climate. The Group’s hotels in Manila continue to experience rate pressures. How ever the resorts in Mactan which completed the renovation of its guest rooms buy end of October 2003, registered a revPAR of 30%. The performance of these resorts continues to be strong.SingaporeManagement Discussion and AnalysisManagement Discussion and AnalysisThe consolidated revenue of all the subsidiaries increase by 8% due mainly the contribution from Shangri-La Hotel Kuala Lumpur reflecting the ongoing benefit of its extensive renovation program completed in May 2003. The hotel increased its revPAR by 21% compared to 2002. The Shangri-La Hotel Penang also recorded an increase in revPAR by 15% in difficult market, driven by a steady improvement in demand for its newly renovated rooms. However, the performance of Shangri-La’s Rasa Sayang Resorts Penang and Shangri-La’s Golden Sand Resorts Penang was adversely affected by the Iraq war which discouraged long haul travel and the outbreak of SARS.MalaysiaManagement Discussion and AnalysisManagement Discussion and AnalysisThe Shangri-La hotel Bangkok Recorded a decline in revPAR of 17% for the year. However, the hotel experienced a good recovery especially in the last quarter an thereafter which was also facilitated by the completion of renovation of its main wing guest rooms.FijiConsolidated revenues of the two hotels increased by 6% in line with an 8% increase in the weighted average revPAR. Shangri-La’s Fijian Resorts Yanuca commenced the renovation of its lagoon wing guest rooms in November 2003 which is expected to be completed in late 2004.ThailandManagement Discussion and AnalysisManagement Discussion and AnalysisThe hotel in Jakarta and Yangon continue to suffer on account of the political and economic problems facing Indonesian and Myanmar.Indonesian and MyanmarnullINFORMATION ACCOMPANYING FINANCIAL STATEMENTSINFORMATION ACCOMPANYING FINANCIAL STATEMENTSINFORMATION ACCOMPANYING FINANCIAL STATEMENTSManagement’s Discussion and Analysis Companies with publicity traded debt and equity securities acquired by the Securities and Exchange Commission to provide a Management’s Discussion and Analysis (MD&A) in their financial reports. The MD&A section review a company’s financial conditions and results of operations. Management must highlight any favourable or unfavourable trends and identify significant events and uncertainties affecting the company’s liquidity, capital resources, and results of operations. They must also disclose prospective information. Management ReportManagement ReportA management report sets out the responsibilities of management in preparing a company’s financial statements.To reinforce senior management’s responsibilities for the company’s financial and internal control system.2. To reinforce the shared roles of management, directors, and auditor in preparing financial statements. Shangri-La’s Report of Management highlights the role of its Audit Committee of the Board of Directors in providing assurance on the integrity of its financial statements.Purposes of ReportAuditor ReportAuditor ReportShangri-La’s Report of Independent Accountants, prepares by Price Waterhouse Coopers Explanatory NotesExplanatory NotesExplanatory notes include information on Accounting principles and methods used. Detailed disclosure regarding individual financial statement elements. Commitments and contingencies Business combinations Transactions with related parties Stock option plans Legal proceedings Significant customersSupplementary InformationSupplementary InformationSupplemental schedules include information onto Business segment data Export sales Marketable securities Valuation accounts Short-term borrowings Quarterly financial data Several supplemental schedules appear in the 2003 annual report of Shangri-La. The SEC is responsible for overseeing financial reporting to external users for companies with publicly traded securities.Social Responsibility ReportsSocial Responsibility Reports Page 42 under the Report of the Directors. This report declares Shangri-La’s committed to the charities donations and other donations made by the Group during the year amounted to US$22,000.00Proxy StatementsProxy StatementsProxy statements contain a wealth of information regarding a company including; identity of shareholders owning 5 or more percent of outstanding shares, biographical information on the board of directors, compensation arrangements with officers and directors, employee benefit plans, and certain transactions with officers and directors. nullFINANCIAL STATEMENT ANALYSISPREVIEW OF FINANCIAL STATEMENT ANALYSISPREVIEW OF FINANCIAL STATEMENT ANALYSISThese six areas of inquiry and investigation are the building blocks of financial statement analysis. Short-term liquidity. A company’s ability to meet short-term obligations. Funds flow. Future availability and disposition of cash. Capital structure and long-term solvency. A company’s ability to generate future revenues and meet long-term obligations. Return on investment. A company’s ability to provide financial rewards sufficient to attract and retain supplies of financing. Asset utilization. Asset intensity in generating revenues to reach a sufficient level of profitability. Operation performance. A company’s success at maximizing revenues and minimizing expenses from long-run operating activities. Comparative Financial Statement AnalysisComparative Financial Statement AnalysisnullRATIO ANALYSISRATIO ANALYSIS OF FINANCIAL STATEMENTSRATIO ANALYSIS OF FINANCIAL STATEMENTSFactors affecting ratiosRatio InterpretationIllustrations of Ratio AnalysisLiquidity RatiosActivity RatiosLeverage RatiosProfitability RatiosShareholders’ Return RatioChanges in Comparative Financial Statement AnalysisChanges in Comparative Financial Statement AnalysisLiquidity RatiosLiquidity RatiosLeverage RatiosLeverage RatiosActivity RatiosActivity RatiosShareholders’ Return RatioShareholders’ Return RatioProfitability RatiosProfitability RatiosnullFUTURE