Infinity Suite at The Langham, London
Art at The Langham, Hong Kong
In addition to the bookings of non-trading items like the increase in fair value of the Group’s investment properties, the Group’s reported statutory profit in 2010 was significantly lifted by the share of results of Champion REIT, as our investment in the REIT was reclassified as an associate company from 23 July 2010. However, in order to provide the same basis for comparison, the Group’s core profit will be based on dividend received from Champion REIT, which is consistent with past practices.
Continued improvement was witnessed in our overall businesses in 2010 as the global economic recovery gathered pace. Core profit increased 26.0% from HK$1,275.7 million in 2009 to HK$1,607.0 million in 2010. The key driver was our hotels business, where operating income increased 53.8% from HK$428.8 million in 2009 to HK$659.6 million in 2010. Net rental income from investment properties increased 9% from HK$164.2 million in 2009 to HK$179.1 million in 2010. Income from Champion REIT increased 1.3% from HK$848.2 million in 2009 to HK$858.9 million in 2010. The profit for 2010 was also aided by an increase of HK$124.6 million in other income, which included a one-time gain of HK$220.1 million arising from the buy-back at a discount of the debts associated with the Pasadena hotel and the office property at 2700 Ygnacio in California.
T Garden at Eaton Smart, Hong Kong
Annual Report 2010