Higher revenue recognition lifts Q2 profit of Hotel Properties to $36.9 million

Hotel Properties (HPL) reported a 68.3 per cent rise in second quarter net profit to $36.9 million.

Revenue for the three months to June 30 increased by 30.2 per cent to $156.4 million, mainly attributable to higher income recognised from the Tomlinson Heights condominium development on a percentage of completion basis as well as better performances by the group's hotels and resorts, especially those in the Maldives.

Contributions from group's associates and jointly controlled entities continues to be strong, mainly attributable to equity accounting of the profits from The Interlace condominium development and d'Leedon condominium development.

During the quarter, HPL also acquired the remaining 15 per cent interest in Concorde Hotel Singapore and 61 shop units at Concorde Shopping Mall, contributing to the increase in borrowings and a drop in equity attributable to non-controlling interests.

Earnings per share climbed to 6.81 cents from 4.33 cents previously while net asset value per share firmed to $2.94 compared to $2.91 as at Dec 31.

On its outlook, HPL expects steady contributions from its hotels and resorts, although continuing uncertainties in the global economic and political environment pose challenges.

"The Singapore residential property market sentiments remain subdued, especially for the luxury segment, as foreign buyers are sidelined by the series of property market cooling measures," it added.