Wanda Hotel Development Expected to Have Net Loss of Approximately HK$900 Million in the First Half of This Year. As of August 12th, the company’s total market value was HK$1 billion.
On August 12th, Wanda Hotel Development (00169.HK) issued a profit warning announcement, expecting a net loss in the first half of 2024. Compared to a net profit of approximately HK$165 million in the same period of 2023, the expected net loss is between HK$880 million and HK$930 million.
The main reason for this loss is the impairment loss of about US$126 million related to the deferred amounts on long-term receivables generated from the sale of Parcel C LLC (“Chicago Project Sale”). The delivery of the Chicago Project Sale was completed in November 2020.
The announcement stated that the impairment loss related to the deferred amounts from the sale confirmed the net loss, and the board informed the shareholders accordingly. This impairment loss related to the deferred amounts is specific to the project and will not have a long-term impact on the overall operation of the group.
The unaudited interim performance of Wanda Hotel Development in the first half of 2024 is expected to be announced by the end of August.
According to Zhongxin Jingwei, in the secondary market, as of the close of trading on August 12th, Wanda Hotel Development was trading at HK$0.213 per share, with a total market value of HK$1 billion.
Wanda Hotel Development is a light asset company under the Wanda Group responsible for hotel business management.
Public data shows that Wanda Hotel Development’s main businesses include hotel operations and management services; hotel design and construction management services; and property investment and leasing. As of the end of 2023, the company had 157 hotels with over 33,900 rooms, and an additional 312 signed management contracts for hotels under development that have not yet opened.