HOTEL Properties Limited (HPL) reported a net profit of S$14.34 million for the first quarter ended March 31, 2016, rising slightly from S$14.3 million a year ago.
Revenue fell from S$158.85 million to S$143.67 million due to lower contributions from the Tomlinson Heights condominium development and the group's resorts in the Maldives. Four Seasons Resort Bali at Jimbaran Bay is currently undergoing a major refurbishment which has affected its performance while Holiday Inn at Vanuatu was also closed for repair since the cyclone in March last year, said HPL.
Earnings per share rose slightly from 2.31 Singapore cents to 2.32 cents.
Meanwhile, the group's share of results of associates and jointly controlled entities rose from a loss of S$3.9 million to a profit of S$3 million, on the back of higher profit contributions from Four Seasons Resort Seychelles and Four Seasons Hotel The Westcliff, Johannesburg, as well as reduced losses from Four Seasons Hotel Shanghai at Pudong which was divested in July 2015.
HPL said: "With the global economic outlook remaining uncertain, the group expects the year ahead to be a challenging one across various business sectors. Nevertheless, our hotels and resorts are expected to generate a recurring income stream for the group. Refurbishment works are ongoing at various properties."
HPL went on to add that its strong balance sheet meant it was well poised to capitalise on available investment opportunities.