Hotel Properties posts 26.7 per cent jump in full-year net profit

SINGAPORE - Hotel owner and operator Hotel Properties saw full-year earnings grow 26.7 per cent despite a dip in turnover from its hotels and resorts.

Net profit for the 12 months ended December 31 last year came in at S$103.5 million, up on the S$81.7 million in the same period a year earlier.

Revenue slipped 0.3 per cent to S$577.6 million, due to lower contribution from the hotels and resorts, particularly those in the Maldives, which were affected by softer demand and on-going refurbishment works, said Hotel Properties in its earnings report on Monday.

The group recorded a gain on disposal of two plots of land in Bangkok, Thailand, which lifted its other operating income by nearly three times to S$62 million.

Earnings per share was 18.13 cents, higher than the 13.95 cents previously, while net asset value per share stood at S$3.45 as at Dec 31, slightly up on the S$3.32 as at the same time a year ago.

The group has declared a total dividend of eight cents per share, comprising a final dividend of four cents and a special dividend also of four cents.

"Looking ahead, challenges remain, with the continuing uncertainties in the global economic and political environment. Nevertheless, our hotels and resorts are expected to continue to provide a recurring income stream for the group,"said Hotel Properties.

It added that on the property front, the construction of the Holland Park Villas and Burlington Gate developments in London - in which the group has a 50 per cent and 65 per cent stake in respectively - are expected to be completed later this year.

Shares of Hotel Properties closed two cents or 0.5 per cent down at S$3.76 on Monday, before the results were released.