Hotel Properties' earnings for Q3 halve to S$21.9m

HOTEL Properties reported third-quarter earnings of S$21.9 million, 48.1 per cent lower than the S$42.2 million recorded a year ago. This is the result of lower contributions from its property division as well as associates and jointly controlled entities.

Earnings per share for the listed group was 3.87 Singapore cents for the three months ended September, also down from 7.78 Singapore cents year-on-year.

Revenue for the quarter decreased 21.5 per cent from S$165.1 million to S$129.5 million.

Hotel Properties attributed the decline in revenue primarily to lower contributions from its property business because the remaining completed condominium units at Tomlinson Heights development were fully sold in earlier 2018. This caused a corresponding decrease in cash from operations.  Also, its associates and jointly controlled entities contributions dropped from S$22.1 million to S$29.6 million, as a result of lower profits from Burlington Gate in London.

Net asset value for the group stood at S$3.84, or 13 Singapore cents higher than S$3.71 recorded as at Dec 31 2017. No dividend has been declared.

The hospitality industry generally performs well in the last quarter of the year. But the group flagged that ongoing trade conflicts between US and China as well as the tightening of the global financial market due to rising interest rates continue to pose uncertainties to its business. 

The counter was unchanged at S$3.71 on Tuesday before results were filed with Singapore Exchange.