It's been a good year so far for New World Development. The Hong Kong-based conglomerate and owner of Rosewood Hotel Group posted a net profit of 19.11 billion Hong Kong dollars ($2.47 billion) for the year ended June, up 97 percent from a year earlier. The jump was mainly due to a one-time gain from the sale of stakes in three of its hotels.
New World sold interests in three Hong Kong hotels to a joint venture with the Abu Dhabi Investment Authority: The Grand Hyatt Hong Kong, Renaissance Harbour View and Hyatt Regency TST were sold for HK$18.5 billion, out of which New World Development received around HK$10 billion.
"The transaction strengthened our investment platform not only for hotel business but also for other opportunities to increase the group's value," said Henry Cheng Kar-shun, chairman of New World Development, as reported by Nikkei.
New World Development had 18 properties in Hong Kong, mainland China and Southeast Asia as of June.
The company's total revenue fell 2 percent to HK$55.25 billion, as turnover in its core property development business fell 12% to HK$25.76 billion. Although revenue from property development operations in Hong Kong rose 9% to HK$10.39 billion on higher sales of residential units, it mainland China business struggled amid the county's recent slowdown. Property development revenue from the mainland slid 23% to HK$15.29 billion.
Cheng, however, remains confident about China's outlook, saying, "We believe [in the] long-term development of the economy. We still focus our investments on Hong Kong and China, and we will not take funds out from the mainland."