Courtyard Kingston turns a profit in first quarter of operation
Published:Monday | May 16, 2016 | 12:00 AMSteven Jackson
The owners of Courtyard by Marriott in Kingston revealed that the hotel made money in its first quarter of operations, but held back on the profit it generated.
The hotel officially opened for business last December to face-off with established properties such as Jamaica Pegasus, and Knutsford Court Hotel.
“With the Courtyard Marriott Kingston hotel having opened in December 2015, we are pleased to report that Caribe Hospitality of Jamaica Limited enjoyed a small profit in its first full operating quarter,” said co-owner Pan-Jamaican Investment Trust in its March quarter financial report.
Pan-Jam and its Costa Rican partner developed the hotel through Caribe Hospitality of Jamaica Limited.
The results for Courtyard buffer Pan-Jam’s optimism in hospitality as a frontier for new investments.
"We therefore continue to renovate the former Oceana hotel property through our joint venture, Kingchurch, while seeking opportunities across the island for new projects similar to Oceana or to the Courtyard Marriott. Simultaneously, efforts to find real estate related projects in major overseas markets in which we can invest, remain active," the property conglomerate said.
Pan-Jam made $721 million in net profit for the first quarter or one-third more than the March 2015 period. The company benefited from increased returns from its associated companies.
“Our net profit for the quarter shows significant improvement over the comparable period last year. This is largely the net effect of a stronger share of results of associated and joint venture companies, led by Sagicor, and a gain on disposal of the group’s interest in Hardware & Lumber Limited, set against weaker results from property and other income,” stated the company in its financial results signed by president Stephen Facey and chief operating officer Paul Hanworth.
Pan-Jam booked a gain of $185 million from the sale of its H&L shares to Argyle Industries, and an increase of $149 million from its investments in other businesses. These items more than compensated for decreases of $43 million and $84 million in property and other income, respectively, the company said.
Group operating profit decreased by $140 million.
Pan-Jam is invested locally in Sagicor Group; New Castle Company Limited, the owners of the Walkerswood and Busha Browne lines of sauces and seasonings; Mavis Bank Coffee Factory Limited; Caribe Hospitality; and Chukka Caribbean Adventures. Its share of results of associated and joint venture companies for the quarter amounted to $592 million.