Eastern & Oriental Berhad (E&O) said that the Eastern & Oriental Hotel, Penang, had a promising fiscal year ending March 31, 2023 (FY2023), with high average occupancy and room prices.
This growing trend is bolstered further by demand for ballroom rental services and event venues, as well as food and beverage options, according to Kok Tuck Cheong, managing director of E&O, following the announcement of the company's full year FY2023 financial results.
E&O's revenue for FY2023 of RM318.1 million was higher by 126.4 per cent as compared to RM140.5 million in the previous financial year.
Kok said this was largely due to the revenue recognition from the sale of The Meg, located at Andaman Island Phase 1, which has been fully sold.
"Our maiden project, The Meg, is fully sold, and our second project, Arica, which started selling in March 2023, has received an encouraging take-up rate," he said.
Kok said the recently awarded GreenRE Platinum Provisional Certificates for Andaman Island Phase 1, The Meg, and the Arica projects are testaments to E&O's commitment to sustainability.
"We remain dedicated to our ethos of doing things differently, always for the better, with sincerity, integrity, and passion. These principles are the hallmark of E&O," he said.
Kok said the rights issue of irredeemable convertible unsecured loan stock, which was completed in March 2023, has received strong subscription from shareholders, raising total proceeds of RM255.7 million.
He said a portion of the proceeds are earmarked for the reclamation of 507 acres for Andaman Island Phase 2.
Meanwhile, the company's hospitality segment registered a 232.1 per cent increase in revenue from RM27.9 million to RM92.8 million year on year.
"Lincoln Suites, our hospitality property in London, continues to perform with high occupancy rates and improving room rates as foreign tourist arrivals to this international city continue to rise," he said,
FY2023's adjusted pre-tax profit and minority interest of RM71.9 million was sharply higher than the reported RM44.5 million after accounting for property impairment, a fair value loss of RM19.8 million, and a forex loss of RM7.6 million.