Ong Beng Seng’s HPL to report net loss for FY2025 as finance costs remain high
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The Forum is one of HPL's assets. The group incurred mark-to-market fair value losses on its long-term investments.
ST PHOTO: KELVIN CHNG
- HPL anticipates a net loss for FY2025 due to elevated finance costs from increased borrowing and mark-to-market investment losses.
- This follows HPL's H1 2024 net profit of $11.4 million, which was boosted by Four Seasons Hotel Osaka's opening.
- Global economic uncertainty, geopolitical tensions, and cautious consumer spending contribute to HPL's unfavourable FY2025 financial outlook.
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SINGAPORE – Hotel Properties Limited (HPL), owned by real estate magnate Ong Beng Seng, is expected to post a net loss for the financial year ended Dec 31, 2025.
Despite higher revenue, finance costs remained elevated, largely because of increased borrowing and the delayed impact of interest rates easing, the group said in a bourse filing on Feb 13.
It also incurred mark-to-market fair value losses on its long-term investments, which further weighed on its overall financial performance, it added.
HPL is expected to release its FY2025 results by Feb 27.
For its first half ended June 30, the group recorded a net profit of $11.4 million, reversing from a loss of $4.9 million in the year-ago period. Earnings per share stood at $0.0134, compared with a loss per share of $0.0162 previously.
Revenue for H1 was up 9 per cent at $378.4 million, from $347.3 million the year before. The increase was due mainly to the opening of Four Seasons Hotel Osaka in August 2024.
In the half-year, the group recorded a mark-to-market fair value loss on long-term investments of $9.3 million, compared with a gain of $5.5 million in the previous corresponding period.
Finance costs rose slightly to $51 million from $50.2 million because of higher borrowings.
HPL said then that global economic conditions remained clouded because of geopolitical trade tensions and ongoing conflicts.
“This may dampen consumer sentiment and confidence, resulting in more cautious spending,” it added. “While central banks continue to adjust interest rates based on a range of economic indicators, the prevailing trajectory remains downward.”
Shares of HPL on Feb 13 ended 1.4 per cent or 7 cents lower at $4.88, before the news.
