May 2016 Financial News

Sagicor X Fund plans Hilton expansion

May 11, 2016

Sagicor X Fund disclosed in its annual report last week that it has acquired two properties in St James, collectively known as the northern estate, which will be used for the expansion of the Hilton Hotel, itself acquired in early 2015.

The properties are Cinnamon Hill and Success Estate. More details on the planned expansion were not forthcoming.

The Fund, which added the Hilton in St James and the Double Tree hotel in Orlando in the United States to its portfolio last year, saw first quarter 2016 revenues climb to $2.89 billion, up from $1.559 billion at Q1 2015.

Directors said this reflected strong Q1 revenue from the Hilton Rose Hall of $1.573 billion (Q1 2015 - $1.194 billion) as tourist arrivals have improved over 2015; and from DoubleTree of $1.152 billion (Q1 2015 - $nil).

However, net profit at the end of Q1 2016 was flat at $602.4 million compared to $603 million in Q1 2015.

Directors pointed to unrealised capital gains from investment in the Sigma portfolio of $269 million, which were 29 per cent below 2015 ($377 million), as well as foreign exchange losses on US dollar-denominated loans of $77 million and revaluation of loans issued at a discount in 2016 of $61 million.

Hotel operating expenses were $1.775 billion, depreciation $115 million, interest expenses $281 million, other expenses of $2 million and taxation $100 million.

The group generated cash of $955 million from its operating activities (Q1 2015 - $557 million).

As at March 31, 2016, the group had cash and cash equivalents of $5.204 billion, compared to $445. 7 million for the similar period in 2015.

Source:
BY AVIA COLLINDER
collindera@jamaicaobserver.com
Business reporter
Jamaica Observer
Wednesday May 11, 2016

http://www.jamaicaobserver.com/business/Sagicor-X-Fund-plans-Hilton-expansion_60472