HOTEL PROFITS

Evening Post, Issue 25, 30 January 1935, Page 14

HOTEL PROFITS

BETTER IN AUSTRALIA

Evidence of recovery in the community's spending power is afforded by a remarkable increase in the profits of seven leading hotel companies in Sydney and Melbourne, all of which provide accommodation for visitors. Accounts issued in 1934 show profits amounting to £07,300, which represents an increase of £21,900, or '29 j per cent., compared with 1933. Since 1932, when losses were common, there has been a recovery of £69,000. Three of the companies operating in Sydney are recording far better results than the-other four situated in Melbourne, for their earnings amount to an average of 6 per cent, on £1,050,000 of shareholders' funds employed, compared with a return of 3.8 per cent, on £880,000 invested in the Melbourne businesses. Shareholders in the seven companies have benefited from the improved conditions by receiving dividends amounting to £88,900, which represents an increase of £25,900 on 1933. The following table of profits shows that the recovery has been general:— MELBOURNE. 1932. 1933. 1931. £ £' £ Victoria Palace .. 13,100 20,900 t!8.200 Merges ■ 4,600 5,800 8,200 Melbourne hotels . 200* 3,250 5,800 ■Federal' ..' 5,300* ',1,100 1,400 SYDNEY. 1932. 1933. 1934. £ £ £ Australia 4.700* 13,800 27,900 Metropolo B,Boo' 13,500 18,800 Ushers 12,000 -15,030 17.000 Total net profit £28,300 £75,400 £97,300 •Losses, tfiocrcase attributed to rebuilding.