FNPF has invested $721.5 million in hotels and resorts which are operating at bare minimum

The Fiji National Provident Fund has invested $721.5 million in hotels and resorts which are currently operating at bare minimum.

This is 10% of the Fund’s total investment portfolio.

FNPF’s CEO, Jaoji Koroi says the annual returns from this investment is $49.562 million.

FNPF owns Sheraton Resort, Westin Resort, Denarau Golf Course and Development Land, Fiji Marriott Resort Momi Bay, the Intercontinental Fiji Golf Resort and Spa, Holiday Inn Suva, Yatule Beach Resort Limited, FNPF Hotel Resort and the Grand Pacific Hotel.

Koroi says the Fund cannot divulge information on the level of loss in revenue and profits due to the huge impact from COVID-19 as their external auditing is in progress.

We have asked Koroi what it means to the members of the Fund as the FNPF will surely see a reduction in returns, especially from its hotel investments.

Koroi says the return on investments is reflected in the interest rate that is declared annually.

He adds the COVID-19 pandemic has had a drastic impact on the tourism sector, but it would be premature to comment on the financial impact now.

Koroi says FNPF is a long term investor and they invest knowing that someone who joins the Fund today will expect his or her funds to be here 20 or 30 years later just like other superannuation funds.

Koroi further says FNPF will ride out the economic highs and lows, as it has done in the past.

The FNPF CEO further says the Fund has a diversified investment portfolio and while they have a significant stake in the tourism sector, there are other investments which continue to perform well during this pandemic period and is making up for some of the shortfalls in the tourism investments.

Koroi says they continue to earn returns from these investments, especially telecommunications which has been doing quite well during this pandemic.

FNPF currently has 72.60% shareholding in Amalgamated Telecom Holdings.

FNPF has also confirmed that various cost-cutting measures have been implemented by each of their hotels as they focus on the survival of their hotel business.

General Manager Business Transformation, Millie Low says FNPF owned hotels continue to operate at bare minimum depending on occupancy to minimize operational costs.

Low says they are using this period to carry out refurbishment works at their hotel properties to ensure it is ready when the international borders open again.