Owner of the largest conference center in Ho Chi Minh City makes huge profits

In Hospitality - the operator of the largest shopping malls in Ho Chi Minh City such as Gem Center and White Palace - reported an 11-fold increase in profits last year.

In Hospitality Joint Stock Company recorded more than 130 billion VND in profit after tax in 2022, an increase of 11 times compared to 2021. On average, this business pockets more than 350 million VND in profit every day.

The sharp increase in profits helped the company's equity increase from VND550 billion to over VND670 billion, an increase of 22%. As a result, the debt-to-equity ratio also decreased to 0.46 times. In Hospitality currently has over VND308 billion in liabilities, a decrease of over 17%.

Of which, this enterprise recorded about 33.5 billion VND in outstanding bonds. This is the outstanding volume of a batch issued in May 2019, with an original value of 180 billion VND. The interest rate of this batch of bonds is 9.5% per year, with interest paid monthly. Last year alone, the company spent about 12.6 billion VND to pay interest on the above batch of bonds.

Gem Center - one of the conference centers of In Hospitality. Photo: Gem Center — Gem Center - one of the conference centers of In Hospitality. Photo: *Gem Center*

In Hospitality is a company specializing in providing management services, investing in related projects and developing brands in the fields of hotels, restaurants and convention and exhibition centers (MICE). The company currently operates the largest convention centers in Ho Chi Minh City such as Gem Center (District 1), White Palace Hoang Van Thu (Phu Nhuan), White Palace Pham Van Dong (Thu Duc City) and The Log restaurant (District 1).

In Hospitality’s conference centers have long been known as venues for many large events, seminars, and forums. In recent years, the development of the entertainment industry has helped these conference centers welcome more visitors from fan meetings, product launches, and press conferences of domestic and regional artists. The company is investing in building new conference centers including Gem Center Hanoi and White Palace Can Tho.

In Hospitality's predecessor was PQC Convention Joint Stock Company, part of the In Holdings ecosystem founded by Nguyen Huu Phu and Nguyen Huu Quy. In 2020, VinaCapital's VOF fund bought 15% of In Holdings shares with an announced deal value of 25 million USD. Accordingly, the company's valuation at that time reached 167 million USD. VOF said that In Holdings committed to an EBITDA (earnings before tax, depreciation and interest) growth rate of 25-30% in the period 2020 - 2022.

Siddhartha

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