Due to low property development revenue.
Hotel Properties Limited (HPL) reported that its full-year net profit dropped 34.4% to $81.7m, mainly on back of lower sales at its residential projects and weak demand at its hotels.
The group derived lower revenue from its properties division as the Tomlinson Heights condominium development was completed in March 2014. HPL also sold fewer units in The Met condominium in Bangkok.
Meanwhile, contribution from the Singapore hotels was affected by strong competition with reduced consumer spending and lower corporate travel demand.
Ongoing refurbishment works at Four Seasons Resort Bali at Jimbaran Bay has affected its performance, while the Holiday Inn at Vanuatu was also closed for repair since the cyclone in March 2015.
“The Group’s hotels and resorts business will continue to face challenges such as stiff competitions, uncertainties in global economic environment as well as political and environmental conditions of the countries the Group operates in,” HPL said in its earnings statement.
“While there is no sign of recovery in the Singapore residential property market, the Group has success
fully launched 2 residential projects in London, namely, Burlington Gate and Holland Park Villas. Income from these overseas development projects will be recorded upon completion,” HPL added.
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