Hotel Grand Central (H18) H1 2025 earnings summary

Executive summary

• H1 revenue rose to $68.821m from $67.985m; net profit fell to $3.429m from $7.530m, reflecting weaker operating profit and higher FX and finance costs.

• Growth in Australia and the new Auckland hotel offset lower revenue in Singapore and other New Zealand hotels; higher costs at the Auckland hotel weighed on earnings.

Financial highlights

• Hotel operations revenue was $63.149m vs $62.224m; rental income was $5.672m vs $5.761m; total revenue and other income reached $69.844m vs $69.041m.

• Operating profit was $6.099m vs $8.704m; profit before tax was $7.133m vs $12.894m; net profit was $3.429m vs $7.530m.

• Staff costs rose to $24.286m from $23.382m; depreciation and amortisation to $11.597m from $10.188m; hotel operating expenses to $27.862m from $26.767m.

• Interest income fell to $4.924m from $5.768m; finance costs increased to $1.798m from $0.171m; FX loss widened to $1.737m from $0.039m.

• Operating cash flow was $19.443m vs $21.333m; investing cash outflow was $2.707m vs $19.978m; cash and cash equivalents were $226.010m at period-end.

Outlook and guidance

• Growth is expected in Australia hotels vs last year, barring unforeseen circumstances; Singapore and New Zealand hotel markets are expected to remain highly competitive in 2025.

• Revenue improvement and operating-cost reviews will continue in H2 2025.