City Hotel (CITY), a prominent player in the Nepali hospitality industry, has released its third-quarter report for the current fiscal year, showcasing signs of recovery amidst challenging economic conditions. The report highlights a notable decrease in net loss compared to the corresponding period of the previous fiscal year, driven by an increase in income and revenue streams.
According to the financial statements, City Hotel recorded a net loss of Rs. 153.7 million during the review period, a significant improvement from the Rs. 216.1 million loss incurred in the same period last fiscal year. This reduction in losses can be attributed to the company’s successful efforts to boost its income and revenue generation.
During the quarter, City Hotel demonstrated resilience and agility by increasing its operating income by an impressive 13.15 percent. Furthermore, the company’s total income surged by 22.93 percent, indicating a positive trajectory in its revenue streams. However, total expenses also rose by 17.72 percent, reflecting the ongoing challenges and costs associated with maintaining operations during these challenging times.
Despite the increase in expenses, City Hotel managed to reduce its financial expenses by 3.11 percent, showcasing its commitment to efficient cost management and financial discipline. This strategic approach has likely contributed to mitigating the impact of the pandemic on the company’s bottom line.
The financial report also revealed key performance indicators, with City Hotel maintaining a Loss Per Share (LPS) of Rs. 12.24 and a Net Worth Per Share of Rs. 94.36. The company’s paid-up capital stands at Rs. 1.67 billion, while it has reported other equity losses of Rs. 94.3 million.
As the hospitality industry continues to navigate the aftermath of the COVID-19 pandemic and economic uncertainties, City Hotel’s ability to narrow its losses and improve revenue performance is a promising sign of resilience and recovery. The company’s proactive measures to diversify its revenue streams and optimize operational efficiencies have likely played a pivotal role in this positive turnaround.
Looking ahead, City Hotel’s management will undoubtedly focus on sustaining this momentum and exploring new growth opportunities within the rapidly evolving hospitality landscape. By leveraging its brand reputation, strategic partnerships, and innovative service offerings, the company aims to solidify its position as a leading player in the Nepali market.
