Hanoi Movenpick Hotel Suffered A Loss Of Hundred Of Billions

Roxy Vietnam Joint Stock Company – Investor of Movenpick Hanoi Hotel, has just released audited financial statement for the fiscal year 2016 (ending on 30/6/2017).

Though located at the prime location near Hoan Kiem Lake, this 4-star hotel is still in a loss. The profit of tens of billions of dong per year is not enough to offset the accumulated loss of hundreds of billions of dong, not to mention due debts.

In the fiscal year 2016, Roxy Vietnam reached nearly $6,6 million revenue, up nearly 12% over the previous year. Revenue of all segments has been growing, leading to continued room service with $4 million, accounting for 61% of total revenue.

Gross profit and profit after tax also increased to $3,6 million and $1,1million respectively. However, the profit of tens of billions of dong cannot immediately improve the current status of the business of one of the leading luxury hotels in Ha Noi.

By June 30, Roxy Vietnam recorded an accumulated loss of nearly $11 million, with a negative equity of approximately $3,9 million. All assets related to Movenpick Hotel Ha Noi are now funded by debt.

“The company’s continued ability to operate is dependent on continued financial support from shareholders and ultimately on the success of future operations”. The auditors in the newly published report. The report also said that the major shareholders of the hotel confirmed the necessary financial support for the company to operate continuously for the next 12 months.

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Roxy Vietnam’s bank loans to the end of the fiscal year 2016 reached about $9,3 million, mostly from the South East Asia Bank (Seabank). The collateral for these loans is also the Movenpick Hotel Hanoi – the status of 83A Ly Thuong Kiet.

In the annual report of the previous year, management said that one of the reasons why the profit of Movenpick Ha Noi is lower than the plan is many new high-class hotels opened in the area as a source of hotel fast increased. Meanwhile, the demand for tourism development slowly makes the competition become fierce.

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