Hotel Royal (H12) H1 2024 earnings summary

Executive summary

• H1 revenue rose 18.2% YoY to S$32.543m; profit after tax increased 50.2% to S$3.461m, supported by hotel and property investment performance.

• Tourist arrivals rose in Singapore, Malaysia and Thailand; revenue is expected to remain positive, while geopolitical tensions, inflation, high interest rates and currency swings pose risks.

Financial highlights

• Gross profit increased 24.5% to S$17.243m; profit before tax rose 40.2% to S$4.825m.

• Administrative expenses rose 27.0% to S$9.926m; finance costs fell 9.3% to S$3.835m, mainly following bank loan repayments.

• Cash and bank balances were S$15.224m at 30 June 2024, down from S$22.658m at 31 December 2023; total assets were S$857.276m.

Outlook and guidance

• Visitor numbers are expected to improve in Singapore, Malaysia and Thailand, supported by improved flight connections and visa-free travel policies targeting Chinese visitors.

• Revenue is expected to remain positive following recent Hotel Royal Signature openings; performance remains exposed to geopolitical tensions, inflation, high interest rates and currency movements.