After stripping down to its core business and implementing its destination tourism strategy, HKCTS has made 50% more with HK$1.739 billion turnover in 2014. HKCTS president Muhan Xu said it is once again mulling the listing of a hotel spinoff to leverage its hotel asset value.
HKCTS’s capital expenditure at approximately RMB1.7 billion last year was lower than the budgeted RMB2.8 billion. “The second phase investment in our Zhuhai project was held up as we worked on the CDD International joint venture with Dorsett Hotels and Diamond Resorts,” Mr. Xu explained. He predicted that HKCTS expenditure would be higher this year without giving specifics.
HKCTS is facing an order by the Shenzhen municipality to vacate its Tycoon Golf Club from protected lands near drinking water sources by May 15 this year. The golf club adjacent to the Tiegang Reservoir in Shenzhen has been operated by HKCTS for 16 years.
Mr Xu emphasized that Tycoon Golf Club was developed and managed in compliance with laws and regulations. “I believe the Shenzhen municipality being at the forefront of reform in China won’t shut down projects without due cause. This case is a touchstone of whether the Shenzhen government is abiding by Chairman Xi Jinping’s principle of ruling in accordance with the law,” he said.
Mr. Xu pointed out that many golf clubs around the world were located near water sources, but if Tycoon Golf Club was ultimately forced to close HKCTS would demand compensation.(Translation by David)