Hotel companies that are listed with the stock market have recommended lower dividends for their shareholders for the FY2019-20 compared to previous years, after they incurred massive losses amid Covid-19 pandemic in the fourth quarter of the last fiscal.
The companies are Unique Hotel and Resorts Ltd, The Peninsula Chittagong Ltd and Sea Pearl Beach Resort and Spa Ltd.
Officials of those companies said their business has three major facets – room business, banquet hall and restaurant business.
Of these, the room and banquet businesses have come down to almost zero level since the outbreak of the novel coronavirus, resulting in big losses in the April-June quarter of the last financial year, they added.
Unique Hotel and Resorts Limited
This company owns two hotels in Dhaka, which are The Westin Dhaka and Hansa - A Premium Residence. It is set to introduce another five-star hotel – the Sheraton.
The company posted a net loss of Tk6.95 crore in the fourth quarter of the last financial year. Consequently, its net profit dropped by 53% to Tk27.96 crore year-on-year in the FY20 and earnings per share (EPS) stood at Tk0.95.
In this circumstance, the company recommended 10% cash dividend only for its general shareholders for the year ended on June 30 this year. Its sponsors and directors will not get this dividend.
This is the lowest rate of dividend the company has recommended since its enlistment with the capital market.
Md Sharif Hasan, company secretary at Unique Hotel, told The Business Standard that the hotel business is now going through a lean phase. He, however, said there is nothing to panic about.
The company's share price remained unchanged on the Dhaka Stock Exchange (DSE) on Wednesday. The closing price of each share of the company was Tk39.50 on the day.
In the last one year, the highest price of its share was Tk53.
The Peninsula Chittagong Limited
The Peninsula Chittagong has been in the luxury hotel business in Chattogram for a long time. The company is building a five-star hotel named "Peninsula Airport Garden" near Chattogram Airport, which is expected to be completed next year.
In the fourth quarter of the last financial year, the company posted a net loss of Tk4.31 crore, leading to a 94% year-on-year drop in its net profit in FY20. In the last fiscal, the company's net profit stood at Tk0.59 crore and EPS Tk0.05.
The company recommended 10% cash dividend for its shareholders for the last financial year.
On Wednesday, the price of the company's each share on the DSE fell by 6.45% and settled at Tk20.40 at close of the session.
In the last one year, the highest price of the company's share was Tk23.40.
Sea Pearl Beach Resort and Spa Ltd
The company has hotel business at Inani Beach in Cox's Bazar. It is also building a resort in Bandarban.
In the fourth quarter of the last financial year, the company posted a net loss of Tk5.34 crore. In the last fiscal, its net loss per share stood at Tk0.09.
In this situation, the company recommended 1% cash dividend only for its general shareholders for the last financial year. Its sponsors and directors will not get this dividend.
The company's share price did not change on the DSE on Wednesday. Its closing price was Tk79.10 on the day.
In the last one year, the highest price of the company's each share was Tk82.60.