SINGAPORE (Feb 10): Global Premium Hotels saw 4Q16 earnings nearly halved to $2.6 million from $4.9 million a year ago on the back of lower revenue.
For FY16, earnings fell 19.3% to $11.9 million on the back of 4.6% lower revenue of $58.3 million.
Revenue for the 4Q16 ended Dec fell 7.8% to $13.9 million. Hotel room revenue decreased by 8.0% to $13.6 million mainly due to lower hotel room revenue recognised from most of the hotels, including one hotel which had to close temporarily to facilitate asset enhancement works.
The group’s average occupancy rate (AOR) decreased to 77.2% in 4Q16 from 78.5% in 4Q15.
Revenue Per Available Room (RevPAR) also retreated to $79.4 in 4Q16 from $84.8 in 4Q15.
Rental income was relatively stable at $0.3 million for 4Q16.
Cost of sales increased by 4.7% over 4Q15 mainly due to higher hotel consumables expenses and hotel rental charges which were partially offset by savings in utilities and lower guest meal charges.
Other operating income was relatively stable at $0.14 million and $0.15 million in 4Q16 and 4Q15 respectively.
Looking ahead, Global Premium Hotels says the hospitality and tourism industry in Singapore will continue to face challenges amid the global economic uncertainty and the new supply of hotel rooms locally.
Against this backdrop, the group will continue with its efforts to improve operational efficiency and keep up its assets enhancement programme.
“We will also work closely with various agencies including the Singapore Tourism Board (STB) to promote more inbound tourist flow to Singapore,” says the group.
Shares of Global Premium Hotels closed at 31 cents.
