Hotel Royal (H12) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 14.4% to $66.753m and net profit attributable to owners increased 33.3% to $6.686m, supported by hotel recovery and stronger property investment earnings.

• Hotel operations benefited from higher occupancy and room rates across most properties; Malaysia led growth after Hotel Royal Signature opened in Kuala Lumpur.

• Strategy prioritizes brand development, higher room rates, operational consolidation and productivity; no inorganic expansion is planned in the short term.

Financial highlights

• Revenue increased 14.4% to $66.753m; gross profit rose 18.9% to $35.774m.

• Profit before tax grew 22.7% to $9.860m; net profit attributable to owners rose 33.3% to $6.686m.

• EBITDA was $24.477m versus $22.353m; EPS was 5.53 cents versus 4.15 cents.

• Operating cash flow increased 37.8% to $11.354m; investing cash outflow was $13.044m, mainly for renovation and upgrading works.

• Other income fell 34.3% to $3.279m, partly reflecting lower impairment write-backs, interest income, FX gains and FVTPL fair-value gains.

Outlook and guidance

• FY2025 plans target revenue growth through stronger brand following, higher room rates and occupancy, with operating consolidation and productivity gains to control expenses.

• Baba House Phase 3, comprising 51 luxury suites, pools and a pool bar, is expected to start construction in 2H2025 and finish by end-2027.

• Hotel Royal Signature’s full room inventory was handed to management in Dec 2024; sales are expected to build and occupancy stabilize over the following 12 months.

• Tourism demand is expected to rise across operating markets; Thailand’s 2025 tourism campaign targets 39m international visitors and 3tn baht in tourism revenue.