Hotel Properties (H15) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 8.9% YoY to $347.3m; net loss attributable to shareholders narrowed to $4.9m from $17.2m.

• Profit before tax improved to $2.2m from an $8.9m loss, supported by stronger hotel performance and a turnaround in associates’ and joint ventures’ results.

Financial highlights

• Gross profit increased to $82.3m from $78.3m; other operating income was $12.0m versus $20.7m.

• Finance costs rose to $50.2m from $46.3m, reflecting higher borrowings and interest rates.

• A $5.5m mark-to-market gain on long-term investments compared with an $8.4m loss in 1H 2023.

• Operating cash flow was $56.8m versus $61.5m; investing cash outflow was $190.6m.

Outlook and guidance

• Four Seasons Osaka Hotel opened on August 1, 2024; completion of most Brillia Tower Dojima apartment sales is expected later in 2024.

• No forecast was stated; management noted expected US Federal Reserve rate cuts alongside geopolitical tensions that could soften economic conditions.