Lack of hotel rooms a problem
Imperial Pacific International’s eponymous resort on the Pacific island of Saipan saw revenues more than double for the first half of the year, but rising expenses and millions in unpaid VIP gambling debts put a crimp in profits for the company.
In an August 28 filing to the Hong Kong Stock Exchange, IPI showed gross revenues of HKD7.3 billion (US$933 million) for the six months ending June 30, up 82.5 percent year-on-year. But expenses more than tripled to HKD2.9 billion for a gain of just 26 percent gain in adjusted earnings to HKD1.62 billion. Profits rose nearly 9 percent to HKD912 million, reported CalvinAyre.com.
IPI wrote off almost HKD2.1 billion in VIP debts during the period, more than twice the HKD847 million it lost in the same period last year. Total VIP debts amounted to HKD7.3 billion, up from HKD5.3 billion in 2016.
IPI hopes to raise US$51 million through two bond placements to finish Phase I of the resort, which includes the hotel and a number of luxury villas, which are due to open at this time next year. The filing pointed out that a lack of hotel rooms “remains a serious bottleneck for the growth of tourist arrivals.”
