Manager for All Seasons on target - Thakral Holdings hotels

Business Asia, April 5, 1999

A 6.4 per cent net rise in half-year earnings shows hotel operator Thakral Holdings is not resting on its queen-size laurels.

One of Australia's largest hotel owners, with 2500 rooms, Thakral Holdings also manages 3600 rooms under the All Seasons brand.

Last month the company announced it was on target to meet analysts' expectations of a A$30 million full-year net profit, after its half-year figure came in at A$16.2 million.

However, the group's main hotel division fell foul of the Asian downturn, dropping. A$17.6 million, a 6 per cent fall on the corresponding period last year.

This was still a marked improvement on the September quarter which saw Thakral's hotel division profit slump 30 per cent.

Joint chairman Mr Ted Harris said the general environment for hotels had been exceedingly difficult due to Asia's downturn and the building of a number of new hotels.

After the September nightmare, he said the trends "are essentially heading in the right direction".

While the group continues to be dependent on its hotel division -- accounting for 59 per cent of profit -- Mr Harris said Thakral was feeling the benefits of diversification.

The property development division was expected to double its contribution to the books to account for 8 per cent of profits.

The commercial and retail sector accounts for 24 per cent of profit.

Thakral, which has recently completed a deal with the Sydney 2000 Games committee for the All Seasons Premier Menzies to be an official Olympic Family Hotel -- one of three in Sydney -- also has its eye on another kind of game.

Gaming machines are proving a growth area for the group. It has 140 gaming machines which it expects to lift to 240 in six months.

"Gaming profits in the next 12 months would be in the millions rather than hundreds of thousands," Mr Harris said.