Karachi: Pakistan Hotels Developers Ltd. has announced a transformative quarter following the sale of its primary asset, Regent Plaza Hotel, to M/s. SIUT Trust. This transaction marked the cessation of the company's hotel operations as of July 19, 2024, transitioning to a phase focused primarily on managing its capital through interest earnings from bank deposits.
During the first quarter, which concluded on September 30, 2024, Pakistan Hotels Developers Ltd. reported a net revenue of 167.736 million rupees, with a gross profit of 69.291 million rupees. The profits before taxation soared to 21.204 million rupees, up by 634% compared to the same period last year, largely due to increased interest earnings on bank deposits, which have become the company’s new revenue stream following the cessation of its hotel operations.
According to information available from the Pakistan Stock Exchange (PSX), the dramatic shift in the company’s financial landscape is underscored by its earnings per share, which stood at 12.92 rupees for the quarter, a stark contrast to the operational metrics from previous periods when the hotel was functional.
The company also declared a hefty interim cash dividend of 725 rupees per share, amounting to 7,250% of the face value, funded largely through the proceeds from the hotel's sale. This payout represents 90% of the total sale consideration, with the remaining funds allocated for tax obligations and future liabilities. Notably, the company has committed 580 million rupees as an advance income tax, in line with Section 236C of the Income Tax Ordinance 2001.
Following the property sale, the company's registered office was relocated from the iconic Regent Plaza Hotel building to the Marium Complex in Sharfabad, Karachi, effective September 10, 2024.
The Board of Directors has expressed profound gratitude towards the company’s employees, shareholders, and other stakeholders, noting the smooth transition and settlement of employee dues through exceptional bonuses totaling 70.5 million rupees. The board also highlighted the payment of 594 million rupees in taxes during the quarter, reflecting its ongoing fiscal responsibilities.