Hotel Royal (H12) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 11.1% YoY to $74.1m; profit attributable to owners increased 50.1% to $10.0m, supported by hotel growth and lower finance costs.

• Hotel operations grew across Malaysia and Thailand, offsetting softer Singapore revenue; operating focus remains on culture, efficiency, brand development and consolidating existing assets.

Financial highlights

• Revenue was $74.14m, up 11.1% YoY; gross profit rose 12.4% to $34.40m, while profit before tax increased 35.1% to $13.32m.

• Profit for the year attributable to owners was $10.04m versus $6.69m; basic and diluted EPS rose to 8.30 cents from 5.53 cents.

• EBITDA increased to $26.52m from $24.48m; operating cash flow reached $17.33m versus $11.35m.

• Finance costs fell 22.7% to $5.82m; other income declined 9.2% to $2.98m, while other expenses rose to $0.83m, including FX loss and property impairment.

Outlook and guidance

• Room demand is expected to recover gradually in 2026 as travel normalises; plans include targeted segments, pricing actions, digital marketing, operational efficiency and staff training.

• Malaysia targets 47m international visitors in 2026; Thailand tourism authorities target 26.7m visitors, with premium, business-travel, MICE, cultural and heritage segments in focus.

• Baba House Phase 3 expansion is ongoing and expected to finish in 2027, adding rooms and facilities while preserving its Peranakan character.

• Proposed FY2025 first and final dividend is 3.0 cents per share, subject to shareholder approval, versus 2.7 cents for FY2024.