HOTELS & TOURISM | Staff Reporter, Singapore

Frasers Hospitality Trust profits down 4% to $27.75m in Q2

The company’s property operating expenses edged up 0.4%.

Frasers Hospitality Trust net property income dipped slightly by 4% YoY to $27.75m in Q2, according to the company’s financial statement.

Total property operating expenses inched upwards by 0.4% to $9.74m.

The Singapore portfolio continued to witness a 0.6% YOY decline in GOR. Persistent weakness in the rental market hit the revenue per room and gross operating revenue of Fraser Suites Singapore. However, a stronger performance from InterContinental Singapore buoyed the overall gross operating profit (GOP) portfolio to rise 2.2% in the first half of the year compared to 1H FY2017.

Also read: Frasers Hospitality expands Japan portfolio by $250m

The company expects government initiatives including the Hotel Industry Transformation Map to lend support to the hospitality and accommodation industry in the near term. It also expressed optimism as visitor arrivals rose 6.2% YoY in 2017 led by the Chinese and Indonesian markets.  

“For January 2018, visitor arrivals rose 5.4% yoy. In the near term, hotel demand is expected to continue rising on the back of strong visitor arrivals growth. Limited hotel supply in 2018 should provide some respite for the market and reduce pressure on ADR and occupancy rates,” the company added.

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