Hotel Properties returns to profit; Banyan Tree's losses narrow in H2

HOTEL Properties H15 reversed into the black in the fiscal second half from a year ago as the group started seeing better performance from its resorts in Maldives, the company's latest financials released on Friday (Feb 25) showed.

Net profit for the 6 months ended Dec 31, 2021 stood at S$14.6 million, reversing from a net loss of S$105.7 million posted the same period a year ago, as revenue rose 53.1 per cent to S$174.6 million.

The results translate to earnings per share of 1.45 Singapore cents, against loss per share of 21.64 Singapore cents.

For the full year, the group still recorded a net loss of S$7.7 million, but it had narrowed substantially from a net loss of S$177.5 million in FY2020.

Full-year revenue was up 33 per cent to S$344.2 million.

Hotel Properties also attributed its improvement to its Singapore hotels as more people opted for staycations during the school holidays and inbound travel increased after vaccinated travel lanes were introduced.

The group, however, said that the business of its resorts in other parts of South-east Asia continue to be adversely affected by the Covid-related restrictions imposed in those countries.

Meanwhile, it recorded mark-to-market fair value gain of S$45.1 million on long-term investments during the year under review compared to a fair value loss of S$14.5 million last year. This helped to increase operating income and defray some of the operating expenses.

On its outlook, Hotel Properties said challenges and uncertainties remain even as the reopening of borders and resumption of international travel bode well for the hospitality industry.

They include geopolitical tensions, rising business costs as a result of inflation and interest rate hikes, as well as risk of emergence of new Covid-19 variants which may cause further business disruption, the group said.

The board has recommended a first and final 1-tier tax exempt cash dividend of 4 Singapore cents per ordinary share in respect of FY2021, subject to shareholders' approval at its upcoming annual general meeting.

Banyan Tree B58 also released its earning results on Friday. For the 6 months ended Dec 31, 2021, it reported a net loss of S$12.6 million, compared with a net loss of S$46.7 million posted the same period a year ago.

Revenue, however, doubled to S$164.8 million, as all of its operating segments grew. The group noted in particular that its hotels in Maldives achieved pre-pandemic revenues in the second half, while revenue from its Thailand hotels almost doubled from the same time last year.

The results translate to a loss per share of S$1.48, compared to a loss per share of S$5.56 in the same period a year ago.

No dividend was declared for FY2021. Banyan Tree said business operations "continued to be managed prudently" due to the emergence of the Omicron variant that had caused countries to reintroduce lockdowns and suspend vaccinated travel arrangements.

Shares of Hotel Properties closed flat at S$3.37, while Banyan Tree shares closed up 3.4 per cent at S$0.30 on Friday.