Hotel Properties falls into the red with S$39.1 million H1 net loss

[SINGAPORE] Hotel Properties Limited (HPL) fell into the red for its first half ended Jun 30, 2026, posting a net loss of S$39.1 million, compared with a net profit of S$11.4 million in the corresponding year-ago period.

Revenue for the half-year slipped 1.9 per cent to S$371.1 million, down from S$378.4 million in H1 FY2025. Gross profit declined 11.4 per cent to S$75.4 million from S$85.2 million previously.

HPL noted that the conflict in the Middle East disrupted air travel and drove up airfares, which weighed on travel demand, and the company had issued a profit guidance on Jul 31.

It added: “Operating costs also rose as higher fuel prices increased utilities, transportation and other related expenses.”

Its performance was further weakened by the absence of non-recurring items from the prior year.

In H1 FY2025, HPL recorded a fair-value gain of S$27.3 million on shop units at Concorde Shopping Mall in Singapore, as well as a one-off gain from a dispute settlement at Paddington Square in London.

Loss per share stood at S$0.0819, reversing from earnings per share of S$0.0134 in H1 FY2025.

Finance costs for the half-year rose 6.4 per cent to S$54.3 million from S$51 million a year earlier, due to higher borrowings.

Administrative expenses also increased to S$47.6 million, compared with S$44.8 million the year before.

HPL expects hotel operations to remain under pressure from elevated operating costs, including utilities, labour, procurement and financing.

Geopolitical uncertainties may also delay the anticipated easing of interest rates, it added.

The counter was flat at S$4.70 prior to the release of results.