HPL swings into the black with S$32.1 million H2 net profit, reversing H1 loss

HOTEL Properties Limited (HPL), the real estate player owned by tycoon Ong Beng Seng, posted net profit of S$32.1 million for the second half ended Dec 31, plunging from S$578.2 million in the prior corresponding period

This reversed the hotel operator’s net loss of S$4.9 million recorded for its first half ended Jun 30, 2024, and translates to an earnings per share (EPS) of S$0.0547, down from S$1.1024 in H2 FY2023.

Its half-year revenue was up 7 per cent at S$345.6 million from S$323.1 million in H2 FY2023. The group’s revenue growth and bottom-line contraction came on the back of higher costs, the company said on Thursday (Feb 27).  

Its board proposed a final dividend of S$0.04 per share, compared to that of S$0.04 per share and a special dividend of S$0.02 per share for the previous year. This is subject to shareholders’ approval at its upcoming annual general meeting. The payment date will be announced later. 

For the full year, its net profit dived 95.1 per cent on the year to S$27.2 million from S$561 million while its revenue rose 7.9 per cent to S$692.9 million from S$642.1 million. 

The top line growth was driven mainly by the opening of Six Senses Kanuhura – its Maldives resort that underwent refurbishment – in late 2023 and its first Japan hotel Four Seasons Hotel Osaka in August 2024. 

However, its finance costs widened to S$105.6 million in FY2024 from S$98.3 million in FY2023 on higher borrowings and interest rates, the group said. 

For the year ended Dec 31, 2024, the HPL recorded a mark-to-market fair value loss of S$1.5 million on long-term investments, down from S$11.9 million in the previous year. 

HPL has been in the news over its managing director and co-founder Ong’s involvement in the corruption scandal of ex-Transport Minister S Iswaran. Ong faces one charge of abetting offences under Section 165 of the Penal Code, and one charge of abetting the obstruction of justice. 

Ong is also known for bringing the Formula 1 night race to Singapore in 2008 and owns the rights to the Singapore Grand Prix.

HPL shares closed flat at S$3.60 before the earnings results release.