Hotel Grand Central (H18) H1 2023 earnings summary

Executive summary

• H1 revenue rose 16% YoY to S$72.9m and net profit attributable to owners increased 93% to S$10.4m, supported by stronger hotel performance and higher deposit interest income.

• Hotel revenue growth across Singapore, Australia, New Zealand and Malaysia outweighed lower China sales and adverse currency translation effects.

Financial highlights

• Hotel operations revenue increased 20% YoY to S$67.0m; investment-property rental income declined 16% to S$5.9m.

• Operating profit rose 33% to S$12.9m; profit before tax increased 105% to S$15.4m, including S$4.3m interest income from fixed deposits.

• Net profit attributable to owners rose 93% to S$10.4m; income tax expense increased 133% to S$5.0m.

• Total comprehensive loss was S$3.7m versus a S$20.4m loss in H1 2022, mainly reflecting foreign currency translation losses of S$14.3m.

Outlook and guidance

• Hotel-industry outlook was positive amid recovering travel, but recovery depends on sustained global economic and business growth and continued travel demand.

• Inflation, labour shortages, climate change, higher interest rates and geopolitical conflicts remain industry challenges; Singapore-dollar strength versus the Australian and New Zealand dollars may continue to cause translation losses.