The management, however, guided for a challenging environment ahead.
For the quarter ended September 30, 2016, Hotel Properties achieved a revenue of $140m, which is 5% higher than the $133.3m recorded for the corresponding quarter last year.
The increase was mainly attributable to sale of completed condominium units from the Tomlinson Heights development, partially offset by weaker performance by the Group’s resorts in the Maldives due to softer demand and on-going refurbishment works.
The Group’s share of results of associates and jointly controlled entities increased from $9.9m to $24.2m due mainly to a gain from the disposal of Mandarin Oriental Hotel Prague by an associate. During the quarter under review, the Group also received repayments from various associates contributing to both a reduction in borrowings and the amount due from associates in the Group’s Statement of Financial Position.
Finance costs for the quarter under review decreased by 19% from $9.1m to $7.4m as a result of lower borrowings and interest rates. Group profit before income tax for the quarter ended September 30, 2016, was $35.5m compared to $21.4m for the corresponding quarter last year.
After accounting for taxes and non-controlling interests, the net profit attributable to shareholders for the quarter ended September 30, 2016, was $32.1m, an increase of 90% from $16.9m reported for the corresponding quarter last year.
With the continued weakness in the global economy and the uncertainty relating to the US election, the Group’s businesses are expected to face challenging operating conditions ahead, the management said in an SGX filing.
"The hospitality industry is likely to experience softer demand as both leisure and business travelers become more cautious with their travel expenditure," it said.
Nevertheless, with the Group’s hotels and resorts operating under strong hospitality brand names and in diversified locations, together with asset enhancement initiatives, the management said they expect the Group to remain resilient admidst these challenges.
"On the property front, despite the challenging market, recent marketing campaigns launched by the Group’s associates for d’Leedon and The Interlace condominiums were well received by property buyers. Remaining units at the Tomlinson Heights are also progressively being sold," it said.
Do you know more about this story? Contact us anonymously through this link.