Hotel Properties (H15) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 7.2% YoY to S$742.7m and gross profit increased to S$153.5m; net loss attributable to shareholders was S$46.2m versus net profit of S$27.2m in FY2024.

• Higher operating profit was outweighed by investment fair-value losses, finance costs and the remaining share of losses from associates and jointly controlled entities.

Financial highlights

• Revenue was S$742.7m versus S$692.9m; gross profit was S$153.5m versus S$143.7m. The Osaka hotel opening in August 2024 contributed to the increase.

• Operating profit before investee results, depreciation, amortisation, fair-value changes and finance costs was S$164.6m, versus S$148.8m in FY2024 excluding its S$38.7m non-recurring Brillia Tower Dojima sold-unit completion profit.

• Net loss attributable to shareholders was S$46.2m; basic and diluted loss per share were both 10.43 cents, versus earnings per share of 3.86 cents in FY2024.

• Net fair-value loss on investments rose to S$16.3m from S$1.5m; finance costs increased to S$108.2m from S$105.6m.

• Share of losses from associates and jointly controlled entities fell to S$15.7m from S$57.5m, mainly on lower fair-value losses and a gain at Paddington Square following a favourable tenant-dispute settlement.

Outlook and guidance

• The Board recommended a first and final one-tier tax-exempt cash dividend of 4 cents per ordinary share for FY2025.

• Management plans to remain vigilant in a volatile operating environment, seeking to limit impacts while pursuing opportunities.

• International tourist arrivals rose 4% in 2025; growth is expected to continue in 2026 if Asia-Pacific recovery persists, economic conditions remain favourable and geopolitical conflicts do not escalate.