Love Hotel Operator Posts Impressive Results despite earthquake and recession

Alchemy Japan’s Japanese Leisure Hotels’ 2011 revenues grew to JPY2,074 million, a 2% improvement on 2010. EBITDA was on par with previous year, at JPY623 million, despite Japan’s biggest recorded earthquake and tsunami and its disruption on economic growth and consumer confidence.

2011 revenue growth was led by an increase in customer numbers of 6% reaching annual high water mark average occupancy rate of 272%.

In Q1 2011, Japanese GDP contracted by 3.7% (annualized) while Alchemy’s hotels posted 13% EBIDTA growth in Q1 driven by 6% revenue growth. Q2 was heavily impacted by nationwide supply chain problems caused by the 3/11 EQ and tsunami and after-effects which disrupted production and impacted consumer confidence. This also had an adverse direct impact on operations in Kanto area hotels. Q2 revenue slowed but exceeded Q1 by 2.3% and was 3% above previous year, while Q2 EBITDA was 6.8% ahead of Q1 and +3% on PY.

H2 2011 saw Alchemy’s hotels post resilient results, maintaining revenues with year on year growth in customer numbers. Bottom line results were impacted by cost inflation, particularly energy costs.

“Our hotels produced strong counter-cyclical performance achieving market share growth, sales growth and resilient earnings in 2011 despite recessionary and deflationary pressures and substantial external shocks. ” says Alchemy Japan CEO Miro Mijatovic. “While our hotels’ rate of revenue and earnings growth slowed post 3/11, bottoming out in the summer; our strong finish to 2011, with the winter holiday period posting record growth and revenue high water marks at a number of our hotels, established positive forward momentum into 2012 and provides us confidence that we can continue to produce growth in 2012.

“The improved liquidity and contracting caprates in the general Japanese property sector has started to trickle down to operational assets like Leisure Hotels. A number of deals were completed in 2011 with the return of financing to the sector subsequent to the closing of the Japan Leisure Hotels Ltd transaction in June 2011 at historically high caprates, setting a low point for valuations. On the supply side, attractive single turnaround opportunities are available from numerous operators who have not coped well with 2011’s regulatory changes and also portfolio deals where some institutional investors are looking to recycle capital on their long term holdings. We see the current trend for contraction of caprates to continue into 2012.” says Mijatovic.

http://www.propertyfundsworld.com/2012/02/08/161853/alchemy-japan-kk-japanese-leisure-hotels-continues-revenue-growth-2011

Q2 2011 - Tokyo Disneyland Sales Plunge 43% post earthquake

Tokyo Disneyland operator Oriental Land Co. said Thursday it posted a consolidated net loss of 3.80 billion yen for the April to June quarter, remaining in the red for the second quarter in a row, as it closed the amusement park and other facilities for more than a month due to damage caused by the March 11 earthquake and tsunami. 


Oriental Land said its sales plunged 43.0 percent from a year earlier to 48.55 billion yen, due to a more than 40 percent drop in its amusement park and hotel business segments.

Visitors to Tokyo Disneyland and DisneySea in Chiba Prefecture during the first quarter of fiscal 2011 declined from the previous year, but Oriental Land said the number of customers has now recovered to its usual level.

Due to the suspension of the parks and facilities at Tokyo Disney Resort, the company posted an extraordinary loss of 3.82 billion yen including fixed labor costs during the three-month period.

The company expects an extraordinary loss of 2.14 billion yen for the July-September second quarter due to costs associated with ceasing staging of the Canadian performing art troupe Cirque du Soleil's entertainment show at the entertainment complex at the end of this year.

http://www.breitbart.com/article.php?id=D9OTA5180&show_article=1