Exchange Rate Headwinds... Regent Reports H1 Profit of NT$700 Million, Down Over 2% YoY, EPS NT$5.6

Regent (2707), a leading hotel group, held a board meeting today (11th) and announced a consolidated net profit of NT$714 million for the first half of 2025, a decrease of NT$18 million (approximately 2.53%) compared to the same period last year. Earnings per share (EPS) stood at NT$5.6. The decline was primarily due to a net foreign exchange gain of NT$44 million recognized last year, while this year saw a net foreign exchange loss of NT$27 million due to the depreciation of the US dollar, resulting in a NT$71 million reduction in forex gains compared to the previous year.

Regent’s consolidated revenue for H1 2025 reached NT$3.435 billion, an increase of NT$300 million (9.56%) from NT$3.135 billion in the same period of 2024, marking a historic high for the period.

Benefiting from increased demand for family travel during the summer vacation, Regent Group saw steady growth in room and dining revenue. The resumed operations of Silks Place Taroko and the award-winning beef noodle shop at Silks Palace at the National Palace Museum contributed to the group’s performance. Additionally, Regent Galleria’s revenue remained unaffected by tariff fluctuations, outperforming last year’s results. The group’s consolidated revenue for July reached NT$493 million, a 10.48% YoY increase, achieving double-digit growth. Cumulative revenue for January-July totaled NT$3.928 billion, up 9.68% YoY.

Looking ahead, there are still numerous opportunities to boost operational performance before year-end. In addition to the existing Mid-Autumn Festival and Double Ten National Day holidays, this year’s newly added Teachers’ Day and Taiwan Retrocession Day holidays are expected to drive domestic travel demand. Furthermore, year-end Christmas celebrations and corporate banquet bookings will provide additional momentum for the hotel’s F&B performance.

Regent’s hotels have already begun actively promoting Mid-Autumn Festival mooncake gift boxes, initially targeting corporate pre-orders through employee welfare committees. Sales are expected to peak in September as individual purchases for personal use and gifting increase. With new packaging designs and expanded retail channels, sales are projected to grow by 10% compared to last year.

To capitalize on summer accommodation demand, the group’s hotels have launched family-friendly educational stay packages. These include Taipei Regent’s "Metropolitan Museum Masterpieces Exhibition" package, which integrates tour buses and Silks Palace, as well as the "Dadaocheng Summer Fireworks Festival" package in collaboration with Taipei City Government. Tainan Silks Place offers the "Duckling Little Chef" culinary experience for families, while Wellspring by Silks in Beitou provides a "Summer Cool-Down Retreat." Silks Place Taroko also attracts guests with sustainability-themed DIY workshops. These initiatives have drawn significant interest from both domestic and international tourists.

On the F&B front, the group will continue leveraging popular dishes showcased at the Taiwan Culinary Exhibition, such as the Peking duck banquets at Wellspring by Silks’ Yuan Quan Ge and Silks Palace, as well as the weekday dinner promotions at Tai Market Seafood Buffet in Dazhi. Targeting back-to-school gatherings and corporate dining events, the group aims to enhance visibility and customer traffic for its off-site restaurants, contributing substantially to H2 performance growth.