Hotel Properties reports 25.4% rise in net profit to $38.1 million

Hotel Properties yesterday said its first quarter net profit rose by 25.4 per cent to $38.1 million.

Revenue for the three months to March 31 was up 16.1 per cent at $163.8 million, mainly due to higher income recognised from the Tomlinson Heights condominium project as well as stronger contributions from the group's resorts in the Maldives.

Its share of results of associates and jointly controlled entities has also improved as the group continues to equity account for the profits from The Interlace condominium project at Alexandra Road and d'Leedon condominium project at Farrer Road.

Earnings per share climbed to 7.06 cents from six cents previously while net asset value per share stood at $3.02, up from $2.91 as of Dec 31.

On its prospects, Hotel Properties said uncertainties remain in the US and European economies while China and Singapore are also expecting lower economic growth.

The H7N9 bird flu situation in China, if not contained, could also impact the hospitality business, it noted.

"In Singapore, the residential property market sentiments, particularly those of the high end projects, had been affected by the series of cooling measures implemented by the Government."

Hotel Properties said it would continue with its current strategy of operating in diversified business segments as well as geographical locations.