Sheraton Grand Danang Resort records eighth consecutive quarterly loss

Sheraton Grand Danang Resort has been making losses for two years straight

Oriental Sea Villas and Hotel JSC (Sheraton Grand Danang Resort, BDP on UpCOM) announced its financial report for the last quarter of 2019 and the consolidated report for the whole year.

Accordingly, BDP, in the fourth quarter of last year, collected nearly VND90 billion ($3.9 million) in net revenue, an increase of 34 per cent on-year. However, the cost of sales climbed 81.6 per cent, leaving only VND20.6 billion ($895,650) of gross profit, down 30 per cent compared to the same period in 2018. Notably, enterprise management costs tripled to VND21.4 billion ($930,430).

For the whole 2019, Sheraton Danang reached VND382 billion ($16.6 million) in net revenue, up 47 per cent compared to the same period a year before, with the net loss of VND143.5 billion ($6.24 million), whereas in 2018, the company also announced the loss of VND178 billion ($7.74 million).

As of the end of 2019, BDP's accumulated loss reached nearly VND191 billion ($8.3 million), raising the negative equity to VND81 billion ($3.5 million).

By December 31, 2019, the total assets of BDP reached VND3.16 trillion ($137.4 million), which mainly come from VND2.2 trillion ($95.65 million) of long-term assets and VND970 billion ($42.17 million) of short-term assets. The short-term loans of BDP is VND1.1 trillion ($47.83 million). The liabilities also reached VND3.2 trillion ($139.13 million).

BDP was established by the three shareholders of Vietnam Property Ltd. (under VinaCapital, 97.73 per cent), Tan Tien Investment and Development Co., Ltd., and Kim Ngan Investment Services Co., Ltd.

In August 2017, at its annual shareholders' meeting, BDP approved Vietnam Property Ltd. to transfer 24.4 million shares (equivalent to 97.73 per cent) to Dai An Tourism Services Investment JSC without a public offer.