Hotel Properties (H15) H1 2023 earnings summary

Executive summary

• H1 2023 revenue rose 27.9% YoY to $319.0m and gross profit increased 53.1% to $78.3m, but the period ended with a $17.2m loss attributable to shareholders versus $1.9m profit a year earlier.

• Hotel and resort performance improved with international travel growth; higher finance costs and losses from associates and jointly controlled entities drove the shift to a net loss.

Financial highlights

• Revenue was $319.032m versus $249.495m; gross profit was $78.298m versus $51.150m for H1 2022.

• Loss before tax was $8.853m versus profit before tax of $8.513m; net loss after tax was $17.113m versus net profit of $5.787m.

• Loss attributable to shareholders was $17.177m versus profit of $1.924m; basic and diluted loss per share were 3.97 cents versus 0.97 cents.

• Finance costs increased to $46.317m from $21.822m, mainly due to higher interest rates; investment fair-value losses were $8.431m versus $11.633m.

• Operating profit before associates’ results, depreciation, amortisation, fair-value changes and finance costs was $80.7m versus $59.1m.

Outlook and guidance

• Barring unforeseen circumstances, hotel and resort operating performance is expected to continue improving in H2; H2 is traditionally the hospitality industry’s stronger season.

• Inflationary cost pressures and rising interest rates remain key challenges.