KHI STRATEGIC BRAND DEVELOMENT

Transcription

(HKEx Stock Code: 2266)
Corporate Presentation
26 October 2012
PRIVATE &
PRIVATE & CONFIDENTIAL
CONFIDENTIAL
1
Disclaimer
This presentation contains forward-looking statements that are, by their nature, subject to significant risks and uncertainties. These forward-looking statements
include, but are not limited to, statements relating to our operations and business prospects; future developments, trends and competition in the hotel industry;
projects under development or planning; our strategy, business plans, objectives and goals; our capital expenditure plans; our dividend distribution plans; the
prospective financial information regarding our business; our future financial condition and results of operations; the amount and nature of, and potential for,
future development of our business; general economic conditions; and changes to regulatory and operating conditions in the markets in which we operate.
In some cases, we use words such as “aim” “anticipate,” “believe,” “estimate,” “expect,” “going forward,” “intend,” “may,” “plan,” “potential,” “predict,”
“project,” “propose,” “seek,” “should,” “will,” “would” and other similar expressions as well as the negatives of such terms to identify forward-looking
statements. All statements other than statements of historical facts included in this presentation, including, without limitation, statements regarding our
strategies, projected costs and plans and objectives of management for future operations, are forward-looking statements. We can give no assurance that those
expectations will prove to have been correct, and you are cautioned not to place undue reliance on such statements.
Furthermore, these forward-looking statements merely reflect our current view with respect to future events and are not a guarantee of future performance.
Our financial condition may differ materially from the information contained in the forward-looking statements as a result of a number of factors and the
following:
• The viability of our business strategies and their execution;
• The general economic and business conditions in the areas in which we operate;
• The operating environment of the hotel markets in the individual areas in which we operate;
• Demand for our hotel rooms vis-à-vis our competitors;
• The availability of financing and of properties suitable for acquisitions;
• Progress of construction, renovation and refurbishment of our properties;
• Changes or volatility in interest rates, foreign exchange rates & control, equity prices or other rates or prices; and,
• Other factors beyond our control.
Subject to the requirements of applicable laws, rules and regulations, we do not have any obligation and do not intend to update or otherwise revise the
forward-looking statements in this presentation, whether as a result of new information, future events or otherwise. Because of these risks, uncertainties or
assumptions, the forward-looking events and circumstances discussed in this presentation might not occur in the way we expect, or at all. Accordingly, you
should not place undue reliance on any forward-looking statements. All forward-looking statements contained in this presentation are qualified in their
entirety by reference to this cautionary statement.
2
Contents
 Company Overview
 Our Business Strategy
 Our Operating Environment
 Sales & Marketing Strategies
 Financial Highlights
 Conclusion
 Appendices
3
Company Overview
4
Corporate Information
Dorsett Hospitality International

Spin-off from FECIL
(HKEx Stock Code : 035)

Formerly known as Kosmopolito Hotels
International Limited
in Oct 10

FECIL owns 73.25%

Currently managing 18 hotels with 4,873
rooms globally

Fiscal Year End: Mar 31

Over 2,000 employees under payroll

Dividend payout ratio
FY2011
38.5%
FY2012
39.7%
Change
1.2pp
5
A Cheetah in the Hotel Industry
LEAN
FAST
FLEXIBLE
Low Operating and
Overhead Cost
Organic Growth and
Acquisition
Operating and
Development Model
6
Business Model
 3- to 4- Star Segment positioning to capture untapped
potential in major Asian cities
 Focus On Rooms so as to drive superior profitability
 The “Chinese Wallet” strategy
 Flexible Modes Of Development
7
Our Business Strategy
8
Market Positioning & Branding
Attractive hotel segments under-exploited
Asset ownership %
HSH
Mandarin Oriental
Price
range
Economy



Value
Mid-scale
Upscale
Luxury
Developer, owner and operator of hotels
Focused segment range from Value to Upscale
“Silka, Dorsett Grand, Dorsett, d. Collection”
9
Silka Hotels
10
Dorsett Hotels & Resorts
- Dorsett Grand & Dorsett
11
d. Collection
12
Highest EBITDA Margin Amongst Peers
Adjusted EBITDA margin(1)
Drivers
50%
No leased hotels
46.5%
45%
Cost efficiency
- maximize yield per square feet
Average of
peers: 25.9%
40%
35%
30%
Room revenue focus
26.7%
25.7%
24.2%
25%
22.7%
21.2%
20%
Low staff-to-room ratio(2)
13.9%
15%
10%
5%
HSH
0%
Dorsett
International
China
Lodging
Shangri- La
HSH
7 Days
Jin Jiang
Mandarin
Oriental
0.46
Source: Latest available annual reports
Note:
(1) Based on adjusted EBITDA, which is profit before taxation, interest income, finance costs, depreciation and
amortisation, pre-opening expenses, management fees, change in fair value of investment properties,
change in fair value of derivative financial instruments, one-off gains/(losses) and other non-recurring
items
(2) As of FY ended 31 December, 2011 for all hotels except Dorsett International which is FY ended 31 March,
2012. Number of total staff includes all full-time hotel employees
Avg Star-rated
1.82
1.09
1.17
Avg China Budget :
0.26
0.53
0.40
13
Strategic Focus on “Chinese Wallet”
 Hong Kong accounts for 40% of the 70 million Chinese outbound travellers in 2011
 Hong Kong hotels as “billboards” help reinforce consumer behavior
 Chinese travel almost 70% within Asia; aspire to travel to Europe
Total Room Revenue by Customer
Nationality
Chinese Traveller Destinations
80%
70%
68% 68%
60%
50%
40%
30%
18%
13%
20%
8%
4%
10%
9%
6%
2%1%
2%1%
4%
1%
0%
Asia
Europe
Pacific
Leisure
North Central Africa
South
America America
America
Business
14
Modes of Development
1
Greenfield
Lan Kwai Fong Hotel
@ Kau U Fong
Dorsett
Kwun Tong
Dorsett
Singapore
Cosmopolitan Hotel
Hong Kong
Dorsett
Shanghai
Dorsett Grand
Chengdu
Dorsett
London
Grand Dorsett
Subang
Dorsett Regency
Wuhan
Silka Seaview
Dorsett Regency
Kuala Lumpur
2
Conversion
3
Rebranding
4
Management
Contract
The Mercer
Dorsett Regency
Hong Kong
Dorsett Grand
Zhuji
15
Post-listing Completions & Developments
No. of Rooms
1600
COMPLETED
DEVELOPMENT
1400
285
Dorsett Singapore
(Q1 2013)
200
Dorsett Grand Zhuji*,
China (Q2 2013)
1200
1000
800
361
600
The Mercer,
Hong Kong (Q1 2011)
400
200
55
209
Dorsett Regency Hong
Kong (Q2 2011)
556
Dorsett Kwun Tong,
Hong Kong
(Q3 2012)
Dorsett Tsuen Wan ,
Hong Kong (Q3 2013)
322
Dorsett London,
United Kingdom
(Q1 2014)
416
420
Silka Tsuen Wan,
Hong Kong
(Q3 2014)
2013
Management contract
2014
Dorsett Grand
Chengdu, China
(Q3 2012)
548
Dorsett Zhongshan,
China (Q4 2013)
0
2011
2012
Dorsett Silka
A
No. of Hotels
No. of Rooms
Completed
2
917
Under Development
6
2,191
Management Contact
2
264
Total **
10
3,372
16
* Dorsett Grand Zhuji (25% ownership + management contract)
** Excluded the Matrix Building in United Kingdom being acquired, of which the sale contract was signed in September 2012.
Owner / Operator
Silka Hotels
Dorsett
d. Collection
Operating
Hotels
Under
Development
Company
Total
Hong
Kong
Malaysia
3 / 649
2 / 431
(1)4
/ 1,309
3 / 976
Mainland
China
Singapore
UK
5 / 1,080
(2)3
/ 1,149
10 / 3,434
3 / 359
10 / 2,317
3 / 359
5 / 1,407
2 / 968
12 / 3,285
Total
5 / 1,407
18 / 4,873 (3)
3 / 1,149
2 / 616
1 / 285
1 / 322(4)
6 / 2,191
5 / 1,765
1 / 285
1 / 322
24 / 7,064
Currently,
Dorsett
Hospitality
International
manages total
4,873 rooms &
95% are
owned
[# hotels / # rooms]
(1) Cosmo Hotel Mongkok will be rebranded as Dorsett Mongkok, Hong Kong
Cosmopolitan Hotel Hong Kong will be rebranded as Dorsett Wan Chai
(2) Yue Shanghai Hotel will be rebranded as Dorsett Shanghai
(3) Total number of rooms of 4,873 include 4,609 owned hotel rooms and 264 managed hotel rooms
(4) Excluded the Matrix Building in United Kingdom being acquired, of which the sale contract was signed in September 2012
17
Rapid Expansion of Room Inventory
Owned Hotel Rooms
8,000
6,800
7,000
6,058
6,000
5,000
4,609
4,000
3,000
3,285
3,285
2008
2009
3,834
3,901
2010
2011
2,525
2,000
1,199
1,601
1,000
2005
2006
2007
2012
Notes:
(1) Dorsett Singapore , Dorsett Zhongshan, Dorsett Tsuen Wan and Dorsett Grand Zhuji will commence operations in calendar year 2013
2013
2014
(2) Dorsett London and Silka Tsuen Wan will commence operations in calendar year 2014
(3) Excluded the Matrix Building in United Kingdom being acquired, of which the sale contract was signed in Sept 2012
18
Our Operating Environment
19
Tourist Arrivals
Tourist Arrivals into China
Tourist Arrivals into Malaysia
Tourist Arrivals into Hong Kong
20
Hong Kong Hotel Market Environment
Room Inventory
21
Hong Kong Hotel Performance
High Tariff B
Occupancy - High Tariff B
Room Rate - High Tariff B
• High Tariff B are defined as hotels of which ARR is from HK$750 to HK$1,350
and staff ratio between 0.5 and 1.0
22
Hong Kong Hotel Performance
Medium Tariff
Occupancy - Medium Tariff
Room Rate - Medium Tariff
• Medium Tariff are defined as hotels of which ARR is below HK$750
and staff ratio below 0.5
23
Sales & Marketing Strategies
24
Key Sales & Marketing Initiatives
 Realignment of Brands
• Re-launch of refined Brand Architecture
• Formerly known as Kosmopolito Hotels International Limited
 Centralised Sales & Reservation
• Implementation of Central Reservation System (CRS)
• Synxis (a Sabre product)
• Revamp of the web architecture
• Improvement of group wide e-commerce strategy including organic search engine
optimization (SEO) and Pay-Per-Click (PPC) tactics
• Focus on Social Media activities including China
• Implementation of Global Key Account Management
 Channel Shift
• Inventory Distribution System
• Strengthen e-Commerce
25
Shifting Market Segments
Market Segments (by Room Nights)
20% Discount
10% Discount
Individual
Travelers
33%
Groups (+10
Rooms)
20%
Corporate
Rates
15%
20% Discount
Wholesalers /
Agents
32% 25% Discount
Shift to Individual Travellers
26
Shifting Electronic Channels
Electronic Channels (by Room Nights)
Global
Distribution
Systems (GDS)*
5%
Hotel Website 0% Commission
15%
Total
30.8%
10% Commission
16.5% Commission
Online Travel
Agents (OTA)**
80%
Shift from OTA to GDS and Hotel Website
* Global Distribution Systems such as Galileo, Amadeus, Worldspan
** Online Travel Agents such as booking.com, ctrip.com, expedia.com
27
Financial Highlights
28
Source of Revenue
Revenue by Department


Revenue by Region
80% of revenue from rooms
Hong Kong accounts for 65% of revenue and 98% of segment profit
29
Profitability by Region
Segment Profit by Region
Segment Margin
FY2010
FY2011
FY2012
Hong Kong
9.9%
28.9%
39.6%
Malaysia
16.9%
16.3%
16.4%
(54.6%)
(33.9%)
(29.9%)
China
• Excluded segment profit from Singapore and UK
• Excluded one-off gains
30
Revenue Performance By Region
RevPAR
HK$
FY2010
FY2011
FY2012
Q1 FY2012
Q1 FY2013
Hong Kong
560
746
930
799
881
Malaysia
292
332
368
372
343
China
130
284
291
339
421
-
-
1,223
651
1,098
418
535
663
590
643
FY2010
FY2011
FY2012
Q1 FY2012
Q1 FY2013
Hong Kong
83%
92%
96%
94%
94%
Malaysia
69%
73%
75%
75%
69%
China
49%
47%
54%
55%
74%
-
-
80%
36%
80%
75%
79%
83%
82%
82%
Owned
Managed
Hong Kong
Total
Occupancy Rate
Owned
Managed
Hong Kong
Total
31
Performance By Brand
RevPAR
Silka Hotels:
Dorsett :
d. Collection**:
Silka Far East, Silka Seaview, Silka West Kowloon, Silka Johor Bahru and Silka Maytower Hotel & Serviced Residences
Cosmopolitan Hotel Hong Kong*, Cosmo Hotel Mongkok*, Dorsett Regency Hong Kong, Dorsett Regency Wuhan,
Yue Shanghai Hotel*, Dorsett Regency Kuala Lumpur, Grand Dorsett Labuan and Grand Dorsett Subang
Cosmo Hotel Hong Kong, Lan Kwai Fong Hotel @ Kau U Fong and The Mercer
* Cosmopolitan Hotel Hong Kong, Cosmo Hotel Mongkok and Yue Shanghai Hotel will be rebranded as Dorsett Wan Chai, Dorsett Mongkok and Dorsett Shanghai
respectively
** Included Central Park Hotel disposed in November 2011
32
Overall Financial Performance
Revenue
Adjusted EBITDA
33
Asset Valuation
Revaluation surplus
Net assets per share
FY2010
FY2011
FY2012
HK$ 4,909.4 million
HK$ 5,978.8 million
HK$ 7,749.9 million
+ 21.8%
+29.6%
HK$4.44
HK$5.58
+74.3%
+25.8%
HK$2.55
* All assets are carrying at book cost
34
Conclusion
35
Conclusion
The Winning Formula

Focus on Value & Midscale Hotels

Vertically Integrated hotelier - Owner & Operator & Developer

Chinese DNA
Summary

Most competitive model under the current hospitality environment
 Most suitable exposure to the growing China outbound travellers

Highest profit margins to withstand revenue cycles pressure
 Excellent blend of talents to build the next international hotel household name
36
Appendices
37
Case Study 1: Greenfield
Dorsett Regency Hong Kong
 Construction completed in Jun 2011
 Total hotel cost: HK$319m
 Developed into a 209 room hotel
 GOP for FY2012: HK$23m+
 Disposal at HK$800m in Sep 2012
 Operate under management contract
38
Case Study 2 : Conversion
Cosmopolitan Hotel Hong Kong
 Acquired office building in Feb 2003
 Structure + land cost: HK$200m
 Conversion cost: HK$125m
 Converted into a 454 room hotel
 Latest valuation as of Mar 2012: HK$2,245m
39
Case Study 3 : Rebranding
Grand Dorsett Subang (Malaysia)
 Acquired in 2006 at HK$253m (HK$711k per key)
 Formed a joint venture in 2011 to utilise the excess plot ratio for
development into 1,989 apartments
 Dorsett International contributed the car park complex only
(cost: HK$22m)
Profit/Loss sharing with JV partner : 50% / 50%
 Expected completion date: FY2015
 Expect total sale proceed: RM 800 million (Dorsett
International to share 50% of P/L)
 Booking deposits received for 1,250 units
40
Case Study 4 : Greenfield
Dorsett Singapore
 Acquired in Dec 2009
 Up to date development cost + land cost:
HK$666m
 Outstanding development cost: around HK$300m
 Developed into a 285 room hotel + 68 apartment
units
 67 apartments were pre-sold for total proceeds
of around HK$500m
 Expected completion: FY2013
 Expected hotel revenue and operating profit in
first year operation are HK$110m+ and HK$52m+
41
Core Management Team
42
Management Team
Ms. Winnie Chiu
President & Executive Director
Winnie Chiu was appointed as an Executive Director in June 2010 and President in November 2011 of
Dorsett Hospitality International.
She joined Far East Consortium International Limited (FEC) as Director of Property Development in 2005
where she was responsible for project development. She became the Chief Strategy Officer of Dorsett
International in September 2010 and was responsible for the Dorsett International Group’s hotel property
management and development, marketing and human resources.
She has been a Director of Malaysia Land Properties Sdn. Bhd. since 2003 and is responsible for the
development of Plaza Damas, one of the Malaysia Land flagship projects in Kuala Lumpur. She is also a
Non-independent and Non-executive Director of Land & General Berhad, listed on the main market of
Bursa Malaysia since 17 July 2008. She has worked with internationally renowned institutions including
Credit Suisse prior to joining FEC.
Winnie founded Freshness Burger Hong Kong, a chain of fast food restaurants in 2007.
Currently, she is a member of the Board of Governors of the Hong Kong Philharmonic Society Limited,
The Friends of the Hong Kong Arts Centre, The Hong Kong United Youth Association Limited (HKUYA),
The Y-Elites Group, The Chinese General Chamber of Commerce, Discipline Advisory Board (HoSTS
DAB) of the Vocational Training Council and Director of Asian Youth Orchestra (AYO).
Winnie graduated from King's College, University of London in the United Kingdom in 2002 with a
Bachelor of Science degree in Business Management.
43
Management Team
Mr. Frankie Lai
Chief Operating Officer
Appointed as an Executive Director and Chief Operating Officer in June 2010.
Frankie is responsible for the hotel operations of the Group in Hong Kong and China, managing the
operations, administrative works and developing business strategies with the general managers of the
Dorsett International’s member hotels. He was also responsible for the assessment and overall project
management of hotel development and redevelopment projects of the group.
Frankie has more than 8 years’ working experience in the hotel industry. He joined Far East Consortium
International Limited as an accountant and internal auditor in 1989. He was appointed as the financial
controller of Dorsett Hospitality International Services Limited in 2002 responsible for the overall finance
and accounting matters of the company. He became the director of hotel operations of the Dorsett Hotel
Group in 2006.
Frankie graduated from the Bolton Institute of Higher Education (presently known as the University of
Bolton) in the United Kingdom in 1999 with a Bachelor of Arts degree in Business Administration.
44
Management Team
Datin Jasmine Heng
Vice Chairman of Dorsett Hospitality International Malaysia
Appointed as Vice Chairman of Dorsett International Malaysia in August 2011.
Datin Jasmine has more than 25 years’ experience in the hospitality industry, including successful stints
with Starwood Hotels and Resorts as well as Malaysia Airlines. Formerly the General Manger of Grand
Dorsett Subang, Datin Jasmine was the first Malaysian woman to hold the position of General Manager of
a 5-star international hotel chain. She was also twice bestowed the ‘Best Hotel Manager and General
Manager Award’ by Hospitality Asia Platinum Awards in 2008 and 2009 respectively.
Equipped with a postgraduate Diploma in Business Management from Australia and a Diploma in
Marketing from the United Kingdom, Datin Jasmine is currently a Board Member of Malaysian
Association of Hotels, and also the Advisor / Director of the Selangor Tourism Council.
45
Contact Us
Principal Office:
6/F., Unicorn Trade Centre
127-131 Des Voeux Road Central
Central, Hong Kong
Email:
[email protected]
Website:
http://www.dorsett.com
Contact Person:
Ms. Roxane Lo
46

KHI STRATEGIC BRAND DEVELOMENT

Transcription

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