MAINBOARD-LISTED Bonvests Holdings on Monday said its hotel division is experiencing a "significant" decline in revenue amid global travel restrictions. 

The group's rental division has also been hit, mainly due to the "circuit breaker" restrictions in Singapore, said the group in a statement. 

Against this backdrop, it noted that it has sufficient cash holdings and undrawn credit facilities, and may further leverage unencumbered hotel properties for new credit facilities.

Most of the outstanding borrowings undertaken by the group are secured borrowings, for which the estimated market values of borrowings and pledged assets are in excess of the total facility amounts, said Bonvests. 

The group noted that it has received "indicative support" from its principal banks, which are prepared to waive certain loan covenants. 

Measures to keep costs down include the reduction of outsourced services and deferral of non-essential expenditures. Bonvests has also implemented temporary wage cuts and reduced the size of its workforce.

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The group expects to report a loss-before-tax for the first half of the financial year ending Dec 31, 2020 (FY2020). It is still assessing the impact on earnings per share and net asset value per share of the group.

Earlier in March, it revoked its proposed dividend of one Singapore cent per share in FY2019 due to the negative impact of the virus outbreak on its business. 

The group said it will continue to implement measures to conserve cash resources to sustain its business operations and ongoing projects until the Covid-19 situation improves. It will also continue to contain costs and conserve cash, and is readying itself to receive customers and travellers when its businesses resume normal operations. 

Bonvests shares closed flat at S$0.93 on Monday.