SINGAPORE (Nov 13): Hotel Properties reported 3Q earnings rose 31.5% to $42.2 million from $32.1 million a year ago.
Revenue rose 18% to $165 million from $140 million a year ago mainly due to the sale of completed condominium units from the Tomlinson Heights development as well as higher contribution from the group’s hotels and resorts, particularly those in Bali, Indonesia and the Maldives.
But cost of sales rose 16% to $124.6 million, resulting in a 24% rise in gross profit to $40.6 million.
The group’s share of results of associates and jointly controlled entities also increased from $24.2 million to $29.6 million mainly due to recognition of profits from Burlington Gate, London, upon completion of the project. The group’s share of profit for the corresponding quarter last year included a gain of $21.2 million from disposal of Mandarin Oriental Hotel Prague by an associate.
During the quarter under review, the group, through associate and joint venture entities, acquired Four Seasons Resort Langkawi, Double Tree by Hilton Hotel London–Ealing and Hilton London Olympia. These contributed to the increase in the group’s investments and advances to associates and jointly controlled entities in the group’s statement of financial position.
In its outlook, Hotel Properties says the global economic outlook has improved. Nevertheless, the group’s hotels and resorts continue to face challenges such as competition and potential adverse political or environmental conditions of the countries in which the group operates.
Shares in Hotel Properties closed 1 cent lower at $3.91.
