Novotel Saigon Center hotel owner lost 370 billion VND in half a year

Thien Phuc International Hotel One Member Co., Ltd. (District 3, Ho Chi Minh City) has just announced information about its financial situation in the first 6 months of 2023 (from January 1 to June 30). Accordingly, the company suffered a loss of nearly 370 billion VND in the first 6 months of 2023, higher than the loss in the same period last year of 243 billion VND. This is the company that owns and operates Novotel Saigon Center hotel.

Total debt payable at the end of the second quarter of 2023 was about VND 8,696 billion. Of which, the outstanding bond debt was more than VND 6,450 billion, accounting for 74% of the debt payable. According to the report on the payment of principal and interest on bonds for the first half of 2023, many lots issued by the owner of Novotel Saigon Centre Hotel in 2020 have not yet had their interest paid on time due to the reason that they have not yet arranged capital sources.

Chủ khách sạn Novotel Saigon Centre lỗ 370 tỉ đồng trong nửa năm - Ảnh 1. — Owner of Novotel Saigon Center hotel lost nearly 370 billion VND in the first 6 months of 2023

In mid-August, the company also announced the early repurchase of 6 lots of bonds with code TPHCB2024012-017 with a total value of VND 2,250 billion. This is a part of the bonds issued by the company in July 2020 and maturing in July 2024, with an interest rate of 11.8%/year.

Accordingly, the company plans to use the proceeds from the main business of the above project to pay for the bond obligations. However, due to the objective impact of the market in the past two years, Thien Phuc realized that the real estate business is facing many difficulties and cannot improve in the next 1-2 years. On that basis, Thien Phuc discussed and agreed to terminate the transfer transaction and refund the bondholders. Accordingly, Capitaland will refund Thien Phuc an amount of money for Thien Phuc to make payments for the mobilized amounts and other obligations.

Previously, in 2020, the company issued VND 6,450 billion in bonds in two rounds. The first round issued 11 lots with a total value of VND 3,450 billion on July 31, 2020 to pay according to the deposit agreement and receive the transfer of part of the area of the Saigon - Ba Son Complex Office - Commercial Service Building project at 2 Ton Duc Thang, Ben Nghe Ward, District 1, Ho Chi Minh City.

Phase 2 will issue 30 lots with a total value of VND3,000 billion on August 31 with an interest rate of 11%/year applied for the first year. Secured assets include land use rights, house ownership rights and other assets attached to the land of the basement area, commercial and service center at 922 Nguyen Trai, Ward 14, District 5, Ho Chi Minh City and other assets...

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