May 29, 2001 - HVS International
Bass featured strongly in the press last week announcing its interim results as well as securing a prized asset in China, the 514-bedroom Regent Hong Kong Hotel for £241 million.
Folloiwng the sale of 988 unbranded non-core pubs the restructured hotel and leisure group reported a 19.7% increase in turnover to £2.1 million and operating profit up 9.6% to £365 million on continuing operations.
Profit before tax and exceptional items rose by 4% to £337 million, which was near the top end of analyst expectations. The hotel division achieved a 26.7% rise in operating profit, fuelled by strong growth in continental Europe.
Despite acknowledging that the slowdown of the US economy had impacted upon profits during the second quarter, Bass's Chairman Ian Prosser, remains optimistic about second-half trading, with the group's exposure to the downturn limited due to its geographical spread.
Meanwhile, Bass will use its financial stability to continue to expand its portfolio in areas where the economic downturn has depressed prices. According to Finance Director Richard North, Bass is committed to growing its upmarket brands and is looking to further invest in the US and Asia as well as target Germany, France, Spain and Italy within Europe.
Last week, Bass was rumoured to be interested in acquiring the US-based Wyndham International for US $4 billion. Wyndham, however, is thought to have rejected bass's original offer, but is understood to have now provided Bass with further information in order that the UK hotel giant submit a revised offer.
Meanwhile, a second party, as yet unnamed, is understood to have expressed an interest in Wyndham. If such rumours are true, a bidding war may ensue.
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HVS in 2000: Celebrating 20 Years of Valued Hospitality Consulting Service
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