The oldest hotel operator in Hoi An – Hoi An Tourism and Service Joint Stock Company (HOT) - recorded a sharp increase in revenue and profit. In the second quarter, HOT achieved revenue of VND23.3 billion, 2.7 times higher than last year. Profit after tax reached VND720 million in the first half of the year while in the same period last year, it lost VND11.69 billion.

HOT's business activities recovered strongly after three years of losses (2020-2022). It suffered consecutive net losses of more than VND61.3 billion. At the end of 2022, the company's short-term debt exceeded current assets by VND22.8 billion.

HOT stock was forced to cancel listing by the HCM Stock Exchange, because of losses for three consecutive years. On April 27 this year, eight million HOT shares left the HoSE. On May 12, this stock was traded again on the UPCoM, but liquidity plunged.

Owning the most luxurious resorts in the market, Ninh Van Bay Tourism Real Estate Joint Stock Company (NVT) also announced its profit in the first six months of this year, with profit after tax of VND7.2 billion, while last year's loss was VND12.9 billion. NVT said that in 2023, domestic tourism had shown many signs of recovery.

Profit erosion

Thanh Thanh Cong Tourism Joint Stock Company - TTC Hospitality (VNG) recorded a 31% decrease in profit after tax compared to the same period last year, to VND7.79 billion. In the same period last year, the business made a profit of more than VND11.3 billion.

This enterprise explained that in the context of the global economic recession, sharply increased interest rates and corporate income tax expenses were the main factors that reduced profits.

VNG has a hotel system with the brands TTC Hotel, Imperial Hotel and three resorts, including TTC Resort - Ke Ga, TTC Resort - Ninh Thuan and TTC Resort – Doc Let. In addition, the system also includes two conference centres, two amusement parks and six large restaurants.

In the first six months of this year, the business achieved a profit of VND1.1 billion, just equal to nearly 50% of last year. The sharp increase in interest expenses has affected TTC Hospitality's profit. In six months, the business paid VND72.5 billion  of loan interests, VND20 billion higher than last year. The short-term interest of loans that businesses are paying fluctuates between 8.5 - 12.7% per year, interest rate of long-term is 8.5 - 15.78% per year.

Liabilities also increased by more than VND256 billion compared to the beginning of the year, mainly due to increased long-term debt.