A hotel chain sells its business in Peshawar

CARACHI:

The management of a five-star hotel chain in Pakistan has announced the sale of one of its well-run establishments in Peshawar to a local buyer apparently to reduce its liabilities, which have grown more than assets, and at a time when another similar project is nearing completion in the same city.

“The Board of Directors has given its approval for the execution of the sale of business agreement for the disposal of its hotel property, namely, Pearl Continental Hotel, Peshawar,” the company secretary Pakistan Service said. Limited (PSL), Mansoor Khan, in a notification to the Pakistan Stock Exchange.

“We have reached an initial agreement to sell it to a local buyer,” said a senior official from PSL – the owners and operators of the five-star hotel chain. The Grandstand Express.

It is not yet known who the buyer is. “We will release the buyer’s name once we sign a final sales agreement,” he said.

Another manager said it was a good business establishment. “Its occupancy rate stands at 81% as of today (Saturday).”

“The hotel is mainly used by staff from different airlines as it is a 15 minute drive from Peshawar airport,” he said.

“Meanwhile, an advanced five-star hotel (and shopping mall) project, namely PC Zaver Hotel, is nearing completion in Hayatabad, Peshawar,” he said.

“The company’s current liabilities exceed current assets (excluding non-current assets held for sale) by Rs 5.87 billion as of March 31, 2022,” according to PSL’s latest financial statement for the nine months ended March 31. March 2022.

The company’s operations have been affected by the lockdown and government measures in response to the Covid-19 outbreak in previous years, which resulted in the closure of hotel properties from March 2020 to August 2020, a he added.

During the nine-month period, room revenue (net) (occupancy) was recorded at 3.72 billion rupees compared to 2.24 billion rupees for the corresponding period last year, the statement said, alluding to a recovery in the room occupancy rate.

PSL posted a net profit of Rs 996.48 million in nine months (July-March FY22) compared to a loss of Rs 178.21 million in the same period last year.

Commenting on the business outlook, the report states that the increase in economic and tourism activities is expected to have a positive impact on business activities in Pakistan, and the company being a leader in Pakistan’s hospitality industry will certainly reap future business opportunities. .

Restrictions on travel and tourism have also been eased, sports activities are back in Pakistan and the Australian cricket team has just completed its tour of Pakistan, according to the report.

Published in L’Express Tribune, June 26e2022.

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