Hotel Royal (H12) investor relations material

Executive summary

• H1 2026 revenue fell 2.2% YoY to $34.548m, while profit after tax rose 98.2% to $5.537m, supported mainly by foreign-exchange gains and lower finance costs.

• Lower room demand and weaker international travel weighed on hotel revenue; rental income growth and cost management partly offset the pressure.

Financial highlights

• Gross profit increased 3.6% to $15.594m as cost of sales declined 6.5% to $18.954m; administrative expenses rose 9.0% to $8.791m.

• Other income rose to $1.943m from $0.447m, primarily reflecting a $1.607m net foreign-exchange gain; finance costs fell 29.7% to $2.281m.

• Profit before tax increased 63.0% to $6.454m; income tax expense declined 21.4% to $0.917m; profit after tax was $5.537m versus $2.794m.

• Operating cash flow was $4.236m versus $4.711m; cash and cash equivalents ended the period at $16.810m, down from $22.607m at the start.

Outlook and guidance

• Operating conditions expected to remain challenging amid geopolitical uncertainty, international air-travel disruptions and cautious consumer sentiment; demand from some European markets expected to remain subdued.

• Sales and marketing focus shifting toward key Asian markets and diversification of long-haul sources to Australia and New Zealand; cost discipline, efficiency and revenue-mix optimization remain priorities.

• No interim dividend recommended for H1 2026; dividends are considered annually.