Formosa International Hotels announced third-quarter 2026 earnings on November 9, reporting an earnings per share (EPS) of NT$2.48 for the quarter and NT$11.1 for the first nine months. The company’s board also authorized the chairman to negotiate the acquisition of the InterContinental Mark Hopkins hotel in San Francisco for up to NT$1 billion.
Q3 and Nine-Month Financial Performance
Consolidated revenue for the third quarter reached NT$1.692 billion, a 7.74% increase year-over-year and a 1.66% quarter-over-quarter rise. After-tax net profit for the period was NT$326 million, up 9.53% from the same quarter last year but down 13.42% compared with the previous quarter.
For the first three
quarters of 2026, consolidated revenue totaled NT$5.302 billion, a 5.94% increase from the prior year. After-tax net profit for the nine months was NT$1.435 billion, marking a 42.44% increase year-over-year. The strong profit growth was boosted by a one-time after-tax disposal gain of NT$262 million from the sale of a 13% stake in subsidiary Regent Hospitality Worldwide, Inc. to InterContinental Hotels Group (IHG). Excluding this gain, core business after-tax net profit totaled NT$1.173 billion, up 16.41% from a year earlier.
InterContinental Mark Hopkins Hotel Acquisition
The InterContinental Mark Hopkins hotel, located in San Francisco’s Nob Hill neighborhood, is a 19-story property with 383 guest rooms.
It features multiple food and beverage outlets, banquet and meeting facilities, and the rooftop Top of the Mark lounge. Formosa intends to develop this property into its overseas flagship hotel.
Formosa’s long-standing partnership with IHG through the Regent brand underpins this move. The hotel is part of IHG’s InterContinental brand. The board also approved the formation of a new Taiwan subsidiary to manage future hotel operations in the United States. No formal sale and purchase agreement has been signed, and final transaction details are subject to further negotiation.
Q4 Revenue Drivers and Domestic Market Performance
October revenue reached NT$586 million, up 8.97% year-over-year, supported by the National
Day holiday, the Retrocession Day long weekend, and travel subsidies from Taiwan Tourism Administration. First 10 months revenue totaled NT$5.888 billion, a 6.23% increase over the same period last year.
The group generated over NT$100 million in sales during the Taipei International Travel Fair, driving demand for the fourth quarter and early 2027. Online travel fair promotions offering accommodation vouchers and Asia Miles giveaways were extended to November 30 to boost bookings.
Year-end banquet bookings are strong for Taipei Regent and Silks Place Tainan, attracting clients from industries such as technology and finance. Silks Place Taroko targets holiday demand for
Christmas and New Year, while Wellspring by Silks Jiaoxi and Beitou are entering peak winter hot-spring season.
Financial and Market Risks of the Acquisition
The NT$1 billion price cap on the San Francisco hotel acquisition is considered manageable relative to Formosa’s scale. However, risks include currency exchange fluctuations, local market cycles, and capital expenditures related to property renovations.
Formosa noted that the core business has maintained steady growth excluding the one-time gain. If completed, this would be a rare instance of the group directly owning an overseas hotel asset funded through its own capital.
Industry Context and Investor Focus
Formosa’s acquisition signals an industry trend among Taiwanese hospitality leaders toward overseas expansion
amid saturated domestic markets. The group’s partnership with IHG is expected to strengthen if the purchase proceeds.
Investors will monitor fourth-quarter revenue results from travel fairs and year-end bookings alongside the progress and final price negotiation for the San Francisco property acquisition.
