First Sponsor posts 14.8% rise in Europe portfolio’s Q3 operating income
Persistent economic weakness in China continues to weigh on its Chengdu portfolio
[SINGAPORE] Property developer First Sponsor’s European portfolio posted a 14.8 per cent increase in operating income to 17.2 million euros (US$19.2 million) for Q3, up from 14.9 million euros in the year-ago period.
The rise was due to full-quarter contributions from two hotels. They are Crowne Plaza Amsterdam South, acquired in April, and Andaz Amsterdam Prinsengracht, acquired in June. The contributions trebled the group’s leased hotel income to 3.5 million euros.
For the first nine months of 2026, the European portfolio’s operating income rose 7.7 per cent to 42.7 million euros, up from 39.6 million euros.
Overall, Q3 occupancy for First Sponsor’s hotels in the continent edged down slightly to 77.6 per cent, down from 78.9 per cent the year before. However, occupancy for the nine-month period remained stable at 71.2 per cent.
The average daily rate for its European portfolio also remained stable in the quarter, rising 0.8 per cent to 132.2 euros from the prior year.
Meanwhile, its European portfolio’s revenue rose 5.1 per cent to 35.6 million euros in Q3, supported by the “stabilising” performance of German hotel Le Meridien Frankfurt after its renovation, as well as the opening of Puccini Milan in Italy.
However, First Sponsor’s earnings before interest, taxes, depreciation and amortisation (Ebitda) for the European portfolio slipped slightly, falling 1.9 per cent to 7.8 million euros in Q3, from the previous year.
China portfolio
Meanwhile, its Chengdu portfolio had a weaker performance in Q3, with revenue for the period dropping 16.1 per cent to 14.4 million yuan (US$2.2 million) compared to the year before.
The portfolio’s occupancy also slipped 6.2 percentage points to 41.3 per cent, while average daily rate was down 7 per cent at 305 yuan.
First Sponsor attributed the poorer performance to persistent economic weakness in China.
Despite tight cost control, the Chengdu portfolio’s Q3 Ebitda fell 52.4 per cent to 1.1 million yuan, down from 2.3 million yuan previously. This was largely due to the “significant” drop in room revenue, said the group. The decline in F&B revenue, as a result of the weak domestic economy, further weighed on Q3 Ebitda.
Overall, net property income for its Chengdu portfolio fell 10 per cent to 2.1 million yuan year on year, driven by a decrease in rental concessions and lower occupancy.
The drop in rental concessions was due to the master tenant for its Shanghai property, FS Han Mai Mall, terminating at the end of this year.
In terms of loans, the group said that it has no outstanding China loans as at Sep 30, and added that it continues to take a “cautious approach” towards new property financing opportunities in China.
Shares of First Sponsor ended flat at S$0.965 on Monday.
