Palace mulls parking and other revenue generating use of assets as losses widen

PALACE Amusement Company Limited is exploring ways to generate additional income from its property portfolio and other physical assets as the cinema operator grapples with widening losses, declining box office receipts and mounting operational challenges that have continued to weigh negatively on its business. Among the options being considered is a possible joint venture to develop its Cross Roads property in Kingston, with plans to incorporate paid parking at its Studio One Boulevard lot, adjacent to Carib 5, for use by the wider public outside cinema hours, alongside a potential commercial development. The move forms part of efforts to unlock value from underutilised assets and diversify revenue beyond traditional cinema operations. “Discussions concerning this remain internal and at an exploratory stage, but as we continue to scan revenue-generating opportunities for the company…our directors have been assessing the feasibility of this proposal, as well as the level of interest and potential returns, before approaching possible partners and the relevant authorities,” marketing manager and director Melanie Graham told the Jamaica Observer in an interview this week. “We have the space, and parking is always needed in the Corporate Area, so we continue to look at whether this is something we could do,” she reasoned. In addition to the Cross Roads property, the company is also assessing the best use of its South Camp Road head office as part of efforts to unlock further value from its assets. Graham acknowledged that this option was, however, a little more challenging, given the number of operations housed at the location, including a film vault, screening room, storage facilities and other business activities. “There’s already quite a bit going on there, but with nothing off the table, we continue to look at what opportunities may exist,” she said, while noting that the area was becoming increasingly active following the development of a commercial complex nearby and the planned opening of a PriceSmart store along the stretch. In addition to the above measures, Palace is also pursuing other initiatives to increase per-capita spending and make better use of its physical assets. These include plans for a Family Entertainment Centre featuring a games and ride arcade, a dedicated birthday zone for children, enhanced VIP services, and a bar and lounge experience for adults. The initiatives form part of a broader strategy to reduce the company’s dependence on traditional box office revenue, which remains its largest income stream. For the financial year ended June 30, 2026, box office receipts amounted to approximately $598 million accompanied by confectionery sales of $302.9 million, film rentals of $325 million and $28.5 million in screen advertising. Amid continued weakness in cinema attendance and the lingering effects of several external shocks, group revenue for the year declined 27 per cent to $962 million, down from $1.32 billion in 2025. Against the backdrop of another difficult financial year, the company also recorded a net loss of $190 million — $44 million more than that in the previous year. The company’s performance in recent years has been affected by a series of disruptions beginning with the COVID-19 pandemic in 2020 followed by the Hollywood writers’ and actors’ strikes in 2023, and Hurricane Melissa in 2025, which forced the closure of its Palace Multiplex cinema in Montego Bay and eliminated a major revenue stream. Despite the challenges, the company’s management said it remains hopeful that stronger film releases, particularly over the Christmas season, would help to improve attendance and revenue.

PALACE Amusement’s Carib 5 cinema in Cross Roads, St Andrew. 

“What we need are big pictures. And in about two weeks’ time, we should be getting some good pictures,” Graham said as she pointed to releases including The Hunger Games, Avengers and Dune among those anticipated to do well. The company is also looking to benefit from a broader recovery in international cinema attendance, with film distributors increasingly recognising the importance of giving theatrical releases a longer exclusive window before making them available on streaming platforms. “When it’s a big picture and people are talking about it, patrons won’t want to wait until it’s streaming and will come to the cinema to view it,” Graham said. She said that Palace has already seen some success with films capable of drawing audiences away from streaming options, citing Superman, which remained in cinemas for about four months and attracted good attendance before eventually tapering off. The company is also hoping for a stronger contribution from locally produced films, which management believes could provide another avenue for attracting audiences and sustaining cinema traffic throughout the year. “We recently aired a local film, Stew Peas, which did very well, and going forward we would love to see a lot more of those,” Graham said. Aside from the traditional film schedule, Palace has also continued to pursue alternative uses of its cinemas, including live sporting events and other premium entertainment content. Following a partnership with Caribbean Premiere Sports Limited, operators of Rush Sports forged earlier this year, the company now screens live football, motorsports and other sporting events across its cinema network. Graham in an update however said that though the arrangement remains ongoing, the initiative has so far delivered less than management had anticipated— partly because consumers are more accustomed to watching such events in bars and other informal settings where an admission is not typically charged. She said that while this concept remains relatively unfamiliar to many patrons — major sporting events, such as the World Cup final and other champions league matches have nonetheless attracted audiences, providing some encouragement for the initiative. “We would have hoped that we would have done better with it, but it’s a start, you know, and it is something that I think will hopefully grow,” Graham said. As the cinema operator continues to explore ways to grow revenue and navigate mounting financial pressures, Graham said the company’s more than century-long history of overcoming industry disruptions provided reason for optimism. From the emergence of television and home video to the recent rise of streaming, she said Palace has repeatedly had to adapt to changing consumer habits and increased competition for audiences. “We just have to keep the faith and try to move along,” Graham concluded, while expressing cautious optimism that Palace would be able to navigate its latest challenges.