By Ashford W. Meikle, Staff ReporterBASED ON its audited financial statements for the financial year ending March 31, 2004 the Jamaica Pegasus building and the land it stands on have a total value of $2.5 billion.
In 2003 this figure was $2.3 billion. A revaluation lists the building's current value at $2 billion and the land at $500 million.
At the hotel's 36th annual general meeting held on Monday at its Knutsford Boulevard location, the chairman of the Board, John Issa, revealed that an overseas hotel had expressed an interest in the hotel. There are now four different groups showing an interest in the Pegasus.
CONFIDENTIALITY AGREEMENTS
Speaking with Wednes-day Business, Mr Issa said these were not offers to acquire the hotel. The chairman told shareholders that the board had signed confidentiality agreements with the three earliest parties.
A similar agreement is to be sent off to the international hotel which recently indicated its interest. In a previous interview with the Financial Gleaner, Mr Issa had said the usual due diligence study would be done.
Addressing the audience, the chairman made it clear that the board was not in any undue haste to offload the hotel.
He said, "I consider the Pegasus [and its lands] to be the most valuable single piece of real estate in Kingston. It's in the centre of town [and is] a substantial and well maintained hotel."
Speaking with Wednesday Business, he said "we did not put the company on the market."
There have been several offers to buy the hotel in recent years. In 2002 the Hendricksons made an offer which was declined by the shareholders. The Hendricksons own and operate the Knutsford Court and the neighbouring Courtleigh hotels.
Speaking with the Gleaner then, Mr Issa said the Hendrickson's offer was less than the value of the land.
Revenues for the Jamaica Pegasus increased by 13 percent, moving from $435 million to $538 million for the financial year ending March 31, 2004.
Gross profit also increased by a similar level going up to $315 million from $278 million the year before.
Owing to a reduction in income from its now closed gaming lounge, the Derby Room, and higher operating and administration expenses, the hotel posted a two percent increase in its net profit. Net profit after tax grew from $19.6 million to $20.1 million. The hotel is managed by Pegasus Hotels of Jamaica Limited. The Urban Development Corporation (UDC), through its subsidiary, National Hotels and Properties (NHP) has a 60 percent stake in the hotel.
