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Global Premium Hotels' Q3 profit drops 30%
GLOBAL Premium Hotels reported a 30 per cent slide in profit year on year to S$3.57 million for the third quarter ended Sept 30, 2015.
A dip in tourist arrivals as well as downward pressure from additional supply in the hotel industry have affected occupancy rates and revenue per available room (RevPAR), the group highlighted.
Revenue fell 5.3 per cent to S$16.29 million on the back of lower hotel room revenue from most of its hotels, including two hotels which had to close floor by floor for asset enhancement works. The group's average occupancy rate fell from 87.4 per cent in Q3 2014 to 85.9 per cent in Q3 2015, while RevPar was also lower, dipping to S$89.50 from S$92.80 previously.
"The trend of falling AOR and RevPAR is likely to continue in the last quarter of the year against the backdrop of uncertainties in the global economy and the recent volatility in regional currencies. Room rates are likely to remain competitive as new hotels seek to build their client base," the group said.
Earnings per share worked out to 0.34 Singapore cent for the quarter, down from 0.49 cent a year ago.